Implications For Financial Performance Research Articles

Supplier Involvement and Firm Financial Performance: Bringing Strategic Fit to the Fore

AbstractWhile supplier involvement is largely considered an industry best practice, its financial performance implications are far from clear and remain equivocal. These disparate findings led us to shift the conversation to exploring the strategic conditions that may enhance the value of the practice. We do so by drawing on the strategic fit perspective, an underexplored perspective in supplier involvement research. We argue that the value of supplier involvement is shaped by the task priority associated with a firm's strategic orientation. Accounting for the multidimensional nature of strategic fit, we further investigate whether strategic fit is likely to be impacted by a firm's level of market competition. Using a longitudinal survey of automotive manufacturers in Brazil, we demonstrate that supplier involvement fits well with a low‐cost strategy as opposed to a differentiation strategy. However, the degree of fit varies across levels of market competition. The study's overarching contribution is that it develops a theory of how strategic factors interact to impact the financial performance implications of supplier involvement, stressing the significance of strategic fit as the underlying mechanism.

Analysis of Hospital Efficiency and Implications for Financial Performance

Effective financial performance can have a positive impact on hospital efficiency. When hospitals have good financial performance, they are able to optimize resource management, increase revenue, and reduce operating costs. The objective of this study is to analyze Dr. Kariadi Hospital's efficiency from 2018 to 2022 using a financial ratio analysis approach based on PER-24 of 2018 and examine its implications for financial performance. This study employs secondary data in the form of financial statement data from RSUP Dr. Kariadi Semarang, spanning from 2018 to 2022. The data was evaluated by computing eight financial performance metrics. The results suggest that RSUP is efficient based on several indicators, including the current ratio, collection period, fixed asset turnover, and POBO ratio. While inventory turnover is a good indicator, the return on assets (ROA) is only moderate. However, the cash ratio and return on equity (ROE) still need improvement. As a strategic measure, it is recommended to focus on improving the cash ratio and return on equity (ROE) indicators in order to enhance the efficiency and financial performance of Dr. Kariadi Hospital Semarang in the upcoming period.

Green Financial Management, Firm Size, and Capital Structure: Practical Implications for Financial Performance of Companies in the SRI-KEHATI Index

The company's efforts to improve financial performance through maximizing profits are not accompanied by the company's concern for the impacts caused, so there are regulations that require companies to commit to carrying out sustainable business practices and care about environmental issues by implementing green financial management. The indepen dent variables in this study are green financial management, firm size, and capital structure, while the dependent variable in this study is financial performance. This study aimed to test and analyze the effect of 1) green financial management on financial performance, 2) firm size on financial performance, and 3) capital structure on financial performance. The population in this study are all companies incorporated in the SRI-KEHATI index for 2017-2022. Sampling was carried out using the purposive sampling method. The data analysis method is a multiple linear regression analysis process using SPSS 26 software. The results showed that partially green financial management and capital structure significantly positively affect financial performance. Firm size has an insignificant effect on financial performance.

Social Innovation and the Financial Risk of EMNCs - The Contingent Role of Institutional Legitimacy

This paper examines the influence of social innovation on financial risk of emerging economy multinational corporations (EMNCs). Traditionally, research has focussed on Western MNCs’ and their financial performance implications. However, the growing involvement of EMNCs in social innovation—albeit in environments characterized by institutional voids—and its effects on financial risk necessitate an in-depth examination. Drawing on stakeholder theory, we explored how EMNCs balance their social innovation initiatives with financial risks. To this end, we first examine how social innovation reduces the financial risk of EMNCs. Second, we examine the association between excessive social innovation and EMNCs’ financial risk. In addition, borrowing insights from institutional theory, we assess the role played by institutional legitimacy in this process, acknowledging institutional legitimacy’s potential to mitigate the financial risks associated with social innovation in emerging economies. We test our hypotheses based on data drawn from 90 EMNCs in 14 emerging economies, applying a panel regression model with robust standard errors and a rigorous robustness propensity score matching test. Our findings show that social innovation reduces EMNC financial risk, and challenge the assertions made regarding the potential negative implications of excessive social innovation on financial risk. Our results also demonstrate the intricate moderating effects of institutional legitimacy in balancing social innovation, excessive social innovation, and EMNC financial risk. Finally, we proffer critical implications for managers and policymakers in emerging economies.

Strategic Branding: Building Market Positioning and Business Growth through Integrated Management Practices

The purpose of this study is to examine the intricate interplay between strategic branding and integrated management practices and their impact on organizational success in today's competitive marketplace. Through an exhaustive exploration of existing literature, the research design adopts a comprehensive review approach, synthesizing diverse scholarly perspectives on strategic branding, integrated management practices, and their implications for financial performance and consumer behavior. The findings underscore the critical role of integrated management practices in orchestrating successful branding initiatives, emphasizing the alignment of marketing, operations, finance, and human resources to support cohesive brand positioning strategies. Moreover, empirical evidence highlights the positive impact of strategic branding on financial performance, with strong brands exhibiting higher profitability, market share, and shareholder value. The discussion delves into emerging trends such as digitalization, experiential branding, and purpose-driven initiatives, reshaping industry dynamics and challenging traditional marketing paradigms. The implications drawn from the findings offer actionable strategies for organizational leaders, urging them to embrace innovative branding strategies that align with evolving consumer preferences and market dynamics. Furthermore, collaborative efforts between policymakers and industry stakeholders are essential for promoting responsible and ethical branding practices, fostering consumer trust, transparency, and accountability. This study contributes to the literature on strategic branding by providing valuable insights for future research endeavors and informing managerial practices aimed at enhancing brand effectiveness and organizational performance.

The influence of leadership style, business ethics, and environmental performance toward corporate social performance and its impact on corporate financial performance

The study presents research clarifying the influence of leadership style, business ethics, and environmental performance on corporate social performance and its implications for corporate financial performance. A survey was done in manufacturing companies of Indonesia’s State Own Enterprise (SOE) and affiliates. Corporate performance is not solely directed towards shareholders or exclusively defined by financial measures; rather, it encompasses a focus on the impact of the organization on the society in which it operates. The style of leadership plays a crucial role in influencing the strategic management process, enabling the organization to implement successful strategies to realize its vision. Business ethics provide advantages to companies by fostering a favorable influence on their competitive edge in the corporate landscape. Environmental concerns are gaining growing significance among various corporate stakeholders, encompassing consumers, shareholders, prospective investors, creditors, regulatory bodies, employees, and the wider public. The finding of the study was that a leadership style had a positive influence on corporate social performance but a negative influence on corporate financial performance. Business ethics had a negative influence on financial performance but a positive influence on corporate social performance and environmental performance. Environmental performance had a negative influence on corporate social performance but positive influence on financial performance. Corporate social performance has a positive influence on corporate financial performance.

Corporate governance and board conflict solution: The case of Lebanese family healthcare businesses

This study examines the intricate relationship between corporate governance mechanisms and the performance of family-owned hospitals in Lebanon. Specifically, it examined the impact of various governance factors, including board size, independence, duality, meeting frequency, and ownership structure, on the financial performance of these hospitals. By employing agency theory as the conceptual framework and qualitative methodology, which involves interviews with managers from three distinct hospitals in Lebanon, this study sheds light on the dynamics of conflicts between shareholders and managers within the context of family-owned hospitals. This study also explores how corporate governance mechanisms can effectively mitigate these conflicts and enhance shareholder value. The significance of this study lies in its contribution to the understanding of corporate governance practices within the Lebanese healthcare sector, offering valuable insights that extend to developing countries across the Middle East and North Africa (MENA) region. These findings suggest that fostering a more autonomous board structure can play a pivotal role in controlling top management and aligning the interests of shareholders and managers within the Lebanese healthcare landscape. Through a nuanced exploration of governance dynamics and their implications for financial performance, this study underscores the importance of robust governance frameworks for ensuring the sustainable success of family-owned hospitals. Ultimately, by elucidating the mechanisms by which governance practices influence organizational outcomes, this study offers practical implications for healthcare practitioners, policymakers, and stakeholders seeking to enhance governance effectiveness and performance in similar contexts.

CONTRACT NURSE UTILIZATION AND FACILITY AND COMMUNITY FACTORS

Abstract While NHs have long been plagued by nursing staff shortages, the situation has further deteriorated with the COVID 19 pandemic. The NH industry has attempted to address the persistent shortage of nursing staff by increasingly relying on contract nurse staffing. Research suggests that the increased utilization of contract nurses may have negative implications for NH quality and financial performance. However, all NHs are not equally likely to utilize nurse contract staffing. For instance, potentially, NHs with poorer quality of care and financial challenges may be forced to rely more on contract nurse staffing. The primary purpose of this paper is to explore the antecedents---facility and community factors---associated with increased utilization of nurse contract staffing. Employing a pooled cross-sectional observational study design, we extracted secondary data from the PBJ nurse staffing, Nursing Home Compare, Rural-urban commuting area (RUCA) codes, and the American Community Survey (ACS) for the period 2017-2021. To test the relationship between the ratios of contract nurses and facility/community factors, we employed multivariate mixed-effects maximum likelihood regression. We ran three separate regressions for RNs, LPNs, and CNAs. Our results suggest that among facility level factors, NHs with more beds, higher occupancy rates, and higher proportion of Medicare residents were generally more likely to employ contract nurse staffing with some minor differences across the three models (RNs, LPNS, CNAs). Among community factors, location in micropolitan/small town areas, higher poverty rates, and higher education levels were positively associated with nurse contract utilization. Policy and managerial implications are discussed.

Linkages between high-performance work practices and family-centered goals: implications for financial performance in family firms

PurposeThis study explores what impact high-performance work practices (HPWP) – from the ability-motivation-opportunity (AMO) framework – might have on financial performance among family firms and examines the mediating role played by family-centered goals (FCGs).Design/methodology/approachThe empirical approach is based on data collected from a sample of 339 Spanish small and medium-sized family enterprises operating in the industry and service sectors. To test the hypotheses, this paper applies a path analysis modeling tool to estimate both indirect and direct effects in mediator models.FindingsThe results indicate that the AMO framework has a significant impact on financial performance through the lens of FCGs. In addition, family businesses' keen concern to preserve family wealth influences the effectiveness of HPWPs, making firms more socioemotionally oriented at the expense of economic impact.Research limitations/implicationsThis paper underscores the importance of integrating family aspirations into strategic human resource management (HRM) design, emphasizing the significance of socioemotional wealth (SEW) preservation.Practical implicationsThe findings offer practical insights for family managers, family owners and human resource (HR) practitioners, suggesting the need to align HR practices with family goals and to strategically balance socioemotional and financial wealth considerations. Family owners in key management positions must skillfully manage HR strategies in order to harmonize family and firm goals.Originality/valueBy examining the mediating effect of FCGs, this paper advances and extends SEW theory in the context of HRM by considering the relationships between HR practices and firm performance as a mixed gamble approach.

Business Response Strategies to Climate Change: An Integrative and Research Frontiers Outlook

As climate change (CC)-related adversity has become more evident, physical CC impacts and the need to respond to it are now a prominent topic in the political agenda in multiple countries. Accordingly, businesses have begun to adopt strategies to seeking to respond to CC. Recently, strategy and general management scholars have produced a growing number of articles examining the factors that increase the adoption of CC strategies, and, in a few cases, the environmental and financial performance implications of these strategies. Our review indicates that: (a) business research tends to dismiss CC-related adversity, with much of the research on drivers of responses highlighting a clear anthropocentric bias; (b) many papers discuss either adaptation or mitigation without much examination of synergies and tradeoffs between strategies; and (c) we know little about what and how physical climate conditions affect firms and their ability to achieve and sustain a competitive advantage.

Pengaruh Kebijakan Dividen, Kebijakan Hutang, dan Board Study Diversity terhadap Nilai Perusahaan: Studi Kasus pada Perusahaan Sektor Healthcare yang Terdaftar pada Bursa Efek Indonesia Periode 2018-2022

The Healthcare sector is known to have experienced various dynamics in the last five years, including during the pandemic since 2020, which has had implications for financial performance and company value. This research aims to examine and analyze the influence of dividend policy, debt policy, and board study diversity on company value. Data was obtained using secondary data from companies in the healthcare sector listed on the Indonesia Stock Exchange for the period 2018 to 2022. Purposive sampling was used as a technique in this research, then a total of 5 final samples of companies were obtained after removing outlier data from the research object. Firm value is measured using the Tobin's Q method. The DPR ratio is used to measure dividend policy, while DER is used to measure debt policy, and Board Study Diversity is measured based on the ratio of board of directors with a background in economics and business studies compared to the total board of directors using panel data regression. Eviews. Test classical assumptions and test hypotheses with partial tests and simultaneous tests. This research explains that dividend policy has a positive and significant effect on company value, debt policy has a negative and significant effect on company value, while Board Study Diversity has no significant effect on company value. It is hoped that the company can improve its investment strategy in the policies it takes to ensure stability and increase company value.

Balancing short-term gains and long-term success in lodging: The role of customer satisfaction and price in hotel profitability model

This study examines the relationship between revenue and profit drivers and long-term financial performance in the hotel industry based on 17-years data (2004–2020) of six US hotel chains. The analysis creates, tests, and analyzes a cross-level model that examines the complex endogenous relationships, underlying long-term financial performance of hotels. Specifically, we examine the interaction of room price (ADR) and customer satisfaction (ACSI) within a sales-volume-driver framework that impacts financial performance through profitability, measured at both the operating and accounting levels. This study seeks to advance our understanding of these relationships, their characteristics, and their implications for long-term financial performance in the hotel industry. The findings reveal that customer satisfaction is more important than price in achieving long-term financial success in the hotel industry, whereas room nights sold is significant positive driver of all performance levels.

Top management team diversity impact on financial performance: Evidence from VW Group affiliated firms

Abstract Diversity within top management teams (TMTs) has significant implications for firm financial performance, particularly in dynamic industries like the automotive sector. This paper analyzes the relationship between TMT diversity and financial outcomes in companies associated with the Volkswagen Group, operating in an intensely competitive market marked by technological advancements. This comprehensive paper synthesizes studies investigating the correlation between TMT diversity and financial performance within the automotive domain. Employing quantitative approaches, these studies assess demographic factors such as gender, age, ethnicity, and educational background. The analysis unveils distinct patterns of impact. Gender diversity within TMTs exhibits a positive influence on financial performance, with heightened profitability and increased market value being notable outcomes. Age diversity shows a nuanced trend, with moderate levels enhancing strategic decision-making capabilities and fostering innovation. Increased ethnic diversity within TMTs is associated with elevated innovation and overall firm performance. Furthermore, educational diversity within TMTs is found to bolster firm performance, underscoring its pivotal role in strategic decision-making and innovation. By offering a comprehensive synthesis of TMT diversity’s connection to financial performance within the Volkswagen Group’s context, this paper contributes novel perspectives. The study emphasizes the methodologies utilized, outlines key findings, and underscores the original contributions made by existing research. This study illuminates the profound influence of TMT diversity on shaping strategic decisions and fostering innovation in the automotive sector. Importantly, it highlights the crucial role of TMT diversity in driving positive financial outcomes.

Institutions, digital assets, and implications for economic and financial performance

Institutions, digital assets, and implications for economic and financial performance

Determinant Factors of the Quality of Financial Reports for Micro, Small and Medium Enterprises in Serang City and Their Implications for Financial Performance

Determinant Factors of the Quality of Financial Reports for Micro, Small and Medium Enterprises in Serang City and Their Implications for Financial Performance

Effect of capital structure on profitability and its implications on financial performance PT BRI Sharia TBK

This study aims to analyze the effect of structure on profitability and its implications for financial performance at PT. BRI Syariah Tbk period 2016- 2018. The population in this study is in the form of 36 financial statements. The sample in this study is the 2016-2018 financial statements. Hypothesis testing in this study using multiple linear regression. Simultaneously, DER and DAR have a significant and significant effect on profitability. Simultaneously DER and DAR affect financial performance. The coefficient of determination obtained by 42.5% indicates that DER and DAR have the ability to explain profitability, while the remaining 57.5% is explained by variables not examined in this study. The coefficient of determination obtained is 73.1% indicating that DER and DAR have the ability to explain financial performance, while the remaining 26.9% is explained by variables not examined in this study and a coefficient of determination of 57.4% indicates that profitability has the ability to explains financial performance, while the remaining 42.6% is explained by variables not examined in thisstudy.

Concurrent 7. Presentation for: Climate change litigation: directors’ duties, legal developments and risk management

Presented on Tuesday 17 May: Session 7 Climate change is being repositioned in commercial, financial and legal spheres as a matter that requires board-level strategic attention. With a broad-ranging consensus that climate change risks are material and reasonably foreseeable, activists are pursuing a myriad of legal challenges seeking to hold government and companies to account. As the law develops, a number of trends are emerging which will require companies and directors to adapt their response to climate-change-related risks. In particular, directors are required to adequately inform themselves as to the broader physical and economic consequences of climate change, to critically evaluate the implications for financial performance and risk management, to adapt their company’s strategic response, and disclose and report relevant information to stakeholders. These requirements need to be managed amid significant uncertainties and complexities about the impacts of climate change, and also as to realistic emissions reduction targets, offsetting, innovation, measurement and reporting methodologies. This paper outlines climate litigation trends to assist in equipping boards, directors and general counsel to understand and engage with their company’s exposure. In particular, we consider claims against government which are of relevance to companies, including challenges to project approvals on climate change grounds; as well as potential actions against companies, directors and advisors in respect of fiduciary duties, disclosures and greenwashing. To access the presentation click the link on the right. To read the full paper click here

Climate change litigation: directors’ duties, legal developments and risk management

Climate change is being repositioned in commercial, financial and legal spheres as a matter that requires board-level strategic attention. With a broad-ranging consensus that climate change risks are material and reasonably foreseeable, activists are pursuing a myriad of legal challenges seeking to hold government and companies to account. As the law develops, a number of trends are emerging which will require companies and directors to adapt their response to climate-change-related risks. In particular, directors are required to adequately inform themselves as to the broader physical and economic consequences of climate change, to critically evaluate the implications for financial performance and risk management, to adapt their company’s strategic response, and disclose and report relevant information to stakeholders. These requirements need to be managed amid significant uncertainties and complexities about the impacts of climate change, and also as to realistic emissions reduction targets, offsetting, innovation, measurement and reporting methodologies. This paper outlines climate litigation trends to assist in equipping boards, directors and general counsel to understand and engage with their company’s exposure. In particular, we consider claims against government which are of relevance to companies, including challenges to project approvals on climate change grounds; as well as potential actions against companies, directors and advisors in respect of fiduciary duties, disclosures and greenwashing.

Innovation in dynamic knowledge landscapes: using topic modelling to map inventive activity and its implications for financial performance

ABSTRACT We examine the relationship between innovation and performance in the agricultural industry by studying how a firm’s patent portfolio position in the knowledge landscape moderates the relationship between three firm search dimensions (scope, specialisation, and commitment) and the firm’s financial performance. To represent dynamism in the knowledge landscape, we apply topic modelling to 67,120 patent texts of 571 firms and introduce two complementary perspectives on how knowledge can be dynamically categorised. This allows us to create two representations of the knowledge structure to identify contested (scarce) clusters of high (low) recent inventive activity and emergent clusters where knowledge ambiguity has reduced. Our findings suggest that search scope and commitment prove more valuable near scarce clusters, whereas search specialisation is most valuable in contested clusters. In addition, we find that all three search dimensions are positively moderated by proximity to emergent clusters, but vary in their effectiveness. Our results explain an additional 1% in within-firm financial performance (EBITDA). We discuss implications for innovation and strategy research as well as for practice.

The Effects of Subsidies on MSW Treatment Companies: Financial Performance and Policy Implications

Companies that provide public services usually receive subsidies from municipalities as compensation for replacing the latter in their functions as public service providers. However, the managers of those companies are not always interested in maintaining an economically sustainable company, as this implies turning off the tap on exploration subsidies. This article investigates the effect of subsidies on the financial performance of municipal solid waste collection and treatment companies for 2016–2020 and across NUTS II regions. The accounting data of 680 companies retrieved from the SABI database, make it possible to assess the economic sustainability of the companies through financial ratios and operational data. The results show that the financial structure and management of companies in the Centro, Lisbon, and the Azores allowed to take advantage of exploration subsidies to achieve economic sustainability. In the remaining regions these subsidies proved to be ineffective. These results have implications for managers and policy makers insofar as it sheds a light on the conditions under which subsidies contribute to the economical sustainability of companies in the sector.