Improve Corporate Performance Research Articles

Cash Dividend, Principal-agent Problem and Local Chairperson: Evidence from China

ABSTRACT This paper studies the relationship between the local chairperson of the board and the cash dividend distribution level by using annual data from A-share listed firms in China. Firstly, the empirical results show a firm’s cash dividend distribution level will increase when the firm has a local chairperson. The analysis of mediating effect concludes that the local chairperson can improve corporate performance by alleviating the first type of principal-agent problems, and this ultimately increases its cash dividend distribution level. Secondly, the cross-sectional tests show this consistency has a greater effect on the cash dividend distribution levels of state-owned enterprises and those that embraced high-quality external audits. Finally, this relationship will be weakened in firms that have the more serious second type of principal-agent problems.

Impact of accounting information systems on corporate performance: An application of agency theory

Accounting information systems (AIS) provide appropriate information for managers to make decisions and improve corporate performance. When enterprises use appropriate AIS, enterprises can improve their corporate performance because the AIS can protect data, and assets, and generate useful information, thereby improving the decision-making process to achieve business goals (Akhter, 2022). Today, the need to apply appropriate AIS is increasing due to the influence of AIS on corporate performance (Al-Delawi & Ramo, 2020). This study is conducted to investigate AIS and the impact of AIS on the corporate performance of joint stock commercial banks in Vietnam. We employ both qualitative and quantitative methods for processing data collected from 22 joint stock commercial banks in Vietnam. The study sent 250 questionnaires to managers of joint stock commercial banks in Vietnam. The results reveal that there is a positive relationship between AIS and the corporate performance of joint stock commercial banks in Vietnam. In addition, research has also shown in more detail the relationship between AIS and corporate performance based on the application of agency theory. Based on the findings, some recommendations are proposed relating to AIS for enhancing the corporate performance of joint stock commercial banks in Vietnam.

Sustainability Reporting and Capital Adequacy of Listed DMBs in Ghana, Kenya and Nigeria

Meeting capital requirements for adequate banking services has become a complex issue. Prior studies had advanced that effective sustainability reporting influences corporate performance and banks’ capital adequacy. Consequently, this study empirically examined how sustainability reporting affected capital adequacy. This study was inspired by the importance of sustainability reporting in improving corporate performance and deposit money banks' (DMBs') capital adequacy. The study used an expo facto research design and a sustainability reporting checklist of the Global Reporting Initiative for 12 years from 20 to 2021. Secondary data were extracted from the annual financial statements of the DMBs listed in Ghana, Kenya, and Nigeria. 95 DMBs made up the research population, and 35 banks were chosen for the study using a purposive sample strategy. The result of the analysis demonstrated that sustainability reporting exerted a positive significant effect on the capital adequacy of the listed DMBs in Ghana, Kenya and Nigeria adequacy (Adj R2 = 0.91, Wald-test (4, 367) = 3958.9, p < 0.05). The study recommended that the management of the banks should ensure the effective implementation of sustainability reporting regulations and compliance in order to increase corporate legitimacy and banks' capital adequacy.

The Relationship between Service Remediation, Perceived Fairness, Customer Satisfaction, and Repurchase Intention: A Case Study of Online Stores in the Yangtze River Delta Region of China

Based on the fairness theory, this paper takes perceived fairness as an intermediary variable to study the impact of online service recovery on customer satisfaction and repurchase intention. In the research process, the service recovery is divided into three dimensions of material recovery, spiritual recovery and positive responsiveness, and the perceived fairness is divided into three dimensions of distributive fairness, procedure fairness and interaction fairness. The corresponding scales are designed for questionnaire survey and data analysis, it can explore the impact of perceived fairness as a mediating variable on service recovery and customer satisfaction; the impact of perceived fairness as a mediating variable on service recovery and repurchase intention; and the impact of customer satisfaction on repurchase intention. Finally, the following findings and conclusions are drawn: material recovery and spiritual recovery positively affect distributive, procedural and interactive fairness, while positive responsiveness has no significant impact on distributive fairness, and only positively affects procedural fairness and interactive fairness; distributive, procedural and interactive fairness are equally positively affects customer satisfaction, but has no significant effect on repurchase intention ; customer satisfaction positively affects repurchase intention. Based on the above conclusions, enterprises can increase their emphasis on service recovery, and at the same time pay attention to the fairness of service recovery, treat all consumers fairly, formulate a recovery plan that satisfies consumers for them to choose, increase customer satisfaction, and increase repurchases ratio, thereby improving corporate performance.

Does Heterogeneous CSR Affect Corporate Performance?

The market rivalry and China’s ongoing economic expansion are both contributing to a gradual rise in shareholder influence over businesses. Fulfilling corporate social responsibility (CSR) is becoming more and more important to improve corporate performance, gain long-term competitive advantage and achieve sustainable development. Based on panel data of 514 listed Chinese A-share companies from 2015-2019, this study applies a two-way fixed effect model to examine the effect of CSR on corporate performance from stakeholders’ perspectives. And it also examines the mediating effect played by green technological innovation and the moderating effect of two basic corporate competitive strategies on the role of CSR in corporate performance. The study’s findings indicate that: (1) the fulfillment of CSR has a significant positive impact on corporate performance. (2) Green technology innovation plays a part in mediating the process of fulfilling CSR in promoting corporate performance. Internal CSR fulfillment enhances corporate performance by boosting investment in green technology innovation, but external CSR fulfillment enhances corporate performance by decreasing investment in green technology innovation. (3) The positive effect of CSR on corporate performance is weakened by an increase in the level of low-cost strategies, while the positive relationship between CSR and corporate performance is strengthened by an increase in the level of differentiation strategies.

Research on the Path of Improving Enterprise Performance through Employee Stock Ownership Plan in Technological Enterprises

In the period of rapid development of the knowledge economy, human capital plays a very prominent role in technology-based enterprises. Technological enterprises have characteristics such as high R&D investment, intensive technological talent, and significant impact of human capital on their competitiveness. Employee stock ownership plans can stimulate innovation vitality and improve innovation efficiency. The research on employee stock ownership in technology-based enterprises is still a relatively new field, and there are still some challenges. Employee stock ownership in technology-based enterprises is an incentive mechanism that can effectively improve corporate performance. This article elaborates on the characteristics of employee stock ownership plans, analyzes the process of their impact on corporate performance, and proposes countermeasures and suggestions. Employee shareholding in technology-based enterprises is not a panacea for all problems, and its successful implementation requires specific design and adjustment based on the company’s own situation. In addition, the implementation of employee stock ownership plans may also face some challenges, such as equity allocation, liquidity management, etc., which require rational allocation of resources and handling of interest relationships.

A Study on the Role of Compensation Incentives and Equity Incentives in Technology-based Enterprises

Technology-based enterprises, driven by innovation, have flourished in the economic market in recent years. For technology-based enterprises, how to effectively motivate employees to unleash their innovation drive and thus improve corporate performance is a key focus of management in technology-based enterprises. Pay incentives and equity incentives have been widely used in enterprise personnel management in recent years, and previous scholars generally believe that these two approaches can be more effective in motivating employees to innovate and establish a sense of ownership. In order to better study the shortcomings of salary and equity incentives in innovative companies and the strategies to solve them, this paper summarizes the relevant studies and uses Huawei and Hikvision, which have excellent incentive policies, as examples, to find and point out that the level of managerial shareholding and salary level are the criteria for incentives and should be limited to a reasonable range. Secondly, different incentive methods should be used at different stages to optimize the incentive effect.

Examining the mediating role of market performance in the relationship between the big data analytical capability and firm performance

The purpose of this study is to investigate how a company's success is related to its capacity to analyze large amounts of data. A quantitative research strategy was used to collect information from 250 companies across several different industries. Partial least squares and structural equation modeling (SEM) were used to analyze the data for this investigation (PLS). The study's findings suggest that companies benefit from being able to analyze large amounts of data since it improves their standing in the market. The study's results also supported the idea of market success acting as a moderator between big data analytic abilities and corporate success. The results show that businesses that are prepared to examine big data have a greater chance of success in the long run. The ramifications of these findings for businesses who want to maximize their big data capabilities and market performance to improve corporate performance are substantial.
 

R&D investment, financing constraints and corporate financial performance: Empirical evidence from China

Enterprises are a deeply significant pillar of social and economic development. The excellent economic interests of enterprises play an essential role in promoting social and economic development. Business is a major innovation force in improving a country’s independent innovation capacity, which in turn is a key factor in shaping its core competitiveness. As the fuel of technological innovation for enterprises, Research and development (R&D) can accelerate their development and enhance their competitiveness. By using Chinese A-share listed companies from 2007 to 2019 as a sample, this study attempts to examine the specific impact of R&D investment by Chinese companies on corporate performance. Key to the development of R&D activities, R&D investment is directly related to the source of funding, the quality of financing channels and the extent of financing restrictions. The current study explains why enterprise innovation cannot be separated from the input and support of capital, technology, professional talent and other factors from the perspective of enterprise financing constraints. By using Chinese A-share listed companies from 2007 to 2019 as a sample, the study not only examined the impact of R&D investment on corporate performance, but also considered specific mediating mechanisms and heterogeneity analysis of R&D investment on corporate performance. Finally, the study found a significant positive correlation between R&D investment and the performance of listed companies, and this positive correlation was more pronounced when funding constraints were lower. According to the study, mediation effect analysis shows that R&D investment can improve corporate performance by boosting total factor productivity. Additional research has also shown that higher levels of internal control quality can improve the boosting effect of R&D investment on corporate performance. Moreover, R&D investment by SOEs is more conducive to improving the performance of their enterprises than that of non-SOE enterprises. In addition, this study provides empirical evidence of the knowledge effect and positive externality of R&D investment for firms, examines the impact of R&D investment on corporate performance from the perspective of financing constraints, and enriches the related literature on R&D investment, financing constraints and corporate performance.

Managerial Dilemmas and Entrepreneurial Challenges in the Ambidexterity of SMEs: A Systematic Review for Execution System

According to the organizational learning theory, there are two types of corporate activities, exploitation and exploration, for enhancing and improving corporate performance. However, organizations are continually faced with choosing between these two conflicting activities that require different organizational structures, strategies, and environments, respectively. This study’s objective is to use a systematic review methodology to investigate how implementing organizational ambidexterity affects managerial performance in small- and medium-sized enterprises (SMEs). Although there is a general consensus about the relationship between ambidexterity and firm performance, few studies have probed into the mechanism of how it is applied to management process and what antecedents affect the implementation of OA in SMEs. The qualitative method was conducted to investigate the influence of the ambidexterity strategy of SMEs on firm performance. According to the findings, organizational ambidexterity in SMEs has a positive impact on the firm’s managerial performance. SMEs must make decisions that consider environmental factors. Making practical decisions based on accurate formation, considering organizational human resources for implementing ambidexterity, and sharing specific performance goals are all important considerations. This study is also important for SMEs’ top management teams to make proper decisions for the firm’s sustainable growth via OA, and shed new light on the literature of organization theory that operates in a more turbulent environment.

The Effect of Venture Capital on Invested Firms’ Social Responsibility: Evidence from Venture Capital’s Exits

ABSTRACT The impact of venture capital firms (VCs) on invested firms’ shareholder benefits is extensively examined in the literature, but few studies consider VCs’ impact on invested firms’ other stakeholder benefits. In this paper, we use the exit of VCs from a 2010 to 2017 sample of Chinese listed firms as a shock in a difference-in-differences analysis to investigate VCs’ influence on invested firms’ corporate social responsibility (CSR). We find that CSR decreases significantly after VCs’ exits, particularly if VCs are not state-owned or are short-term investors in firms. A further analysis shows that VCs’ exits affect firms’ shareholder, creditor, employee, and environmental benefits. VCs improve CSR by alleviating their agency costs and reducing their financial constraints, both of which increase significantly after VCs’ exit from firms. The effect of VCs on CSR also appears to improve corporate performance, implying that this positive effect is consistent with shareholder benefits.

Executive Financial Literacy and Corporate Performance: Evidence from Small and Medium‐Sized Enterprises in China

AbstractBased on the survey data from the China National SME Survey Database in 2019, we analyze the relationship between executive financial literacy and the performance of Chinese small and medium‐sized enterprises (SMEs). We find that executive financial literacy helps improve corporate performance, especially for companies with weak external supervision and low competitive pressure. After controlling for the effects of the variables at the individual executive and enterprise levels, addressing possible endogenous problems in the analysis, robustness tests and heterogeneity analyses indicates that our findings remain unchanged. We further show that executive financial literacy improves corporate performance by alleviating corporate financing constraints and improving corporate risk management. Our findings have important policy implications for stimulating the vitality of economy and promoting high‐quality economic development.

AUDITORS’ ATTRIBUTES AND FIRM VALUE OF LISTED NIGERIAN SERVICE FIRMS

This study assesses the statistical association between the qualities of auditors and the value of Nigerian listed companies. The study used secondary data that came from the publicly available financial records of 22 Nigerian service listed companies. The investigation was conducted during a ten-year span from 2011 to 2020. The panel data for all the variables included in this study were examined with descriptive statistics, diagnostic tests, and inferential statistics. The study assessed company value using Tobin's Q. Due to the nature of the investigation, a linear model was constructed and verified using simple regression analysis. According to the study's statistical findings, audit fees and firm worth are significantly correlated; while audit tenure and joint audit continued to have a negligible impact on business value. The study found that the characteristics of auditors as a whole had a considerable impact on the value of listed service firms in Nigeria. Based on the findings, the study suggests that service firms in Nigeria shorten the audit tenure because it doesn't seem to have a substantial impact on business value. Service companies should hire reputed auditors at higher rates because they are thought to increase the reliability of financial records and improve corporate performance.
 Keywords: Audit Fee, Audit Tenure, Joint Audit, Firm Value, Tobin’s Q.

The Impact of Formalization on Firm Productivity: An Application of the Fa ̈re-Primont Index

The study uses panel data and a two-step GMM estimation to figure out how formalization of firms affects Vietnam's total factor productivity (TFP) and its decompositions. TFP is broken down into output-oriented technical efficiency (OTE), (ii) output-oriented scale efficiency (OSE), and (iii) residual mixed efficiency based on the Faure-Primont (FP) index (RME). So, the mechanism of the formalization process can be thought of in different ways to improve corporate performance. The results show that formalization played a important role in the rise of TFP, OSE, and RME of SMEs in Vietnam. The findings imply that it is important to improve the business environment and formalization, which in turn promote productivity.

Factors Influencing Executive Compensation in the Automobile Industry in the US

In modern management, executive compensation can exert a substantial impact on the operation and profitability of an organization. This research explores the factors influencing executive compensation in the automobile industry in the United States. It aims to identify the relationship between a set of specific factors, including revenue, earnings per share and return on net assets (RONA) and compensation of executives. The data were selected based on the fiscal year 2021. With the findings and results, it is revealed that executive compensation is significantly related with revenue and earnings per share of a company without a significant relationship with return on net assets. Based on the results, several recommendations are proposed to better engage executives and improve corporate performance.

Corruption, cash holdings and firm performance: empirical evidence from an emerging market

PurposeThis paper aims to examine the impact of corruption on firm performance considering the interventional role of cash policy in the emerging market of Greece.Design/methodology/approachThe current study utilizes a sample of 142,079 firm-year observations for the period 2006–2014. Descriptive statistics, multiple regression analyses and robustness checks are used to test the study's hypotheses.FindingsThe results reveal that firm performance is positively related to the control of institutional corruption, implying that firms perform better when operating in a low-corruption environment. All other things being equal, we also find that firm cash holding strengthens the positive association between control of corruption and corporate financial performance.Research limitations/implicationsThis research paper takes a more holistic approach by considering institutional factors in conjunction with corporate financial policies and outcomes. In a pervasive corrupt environment, the article illustrates how firm-level mechanisms can preclude political rent-seeking to improve corporate performance. The study's main limitation is that it focuses exclusively on a single country setting, based on the extreme-critical case's logic.Practical implicationsThe findings might be useful for business executives and regulators seeking a better understanding of the planning and implementation of firms' asset allocation strategies and anti-corruption policies.Originality/valueThe study augments the relevant literature on the firm-level implications of corruption by providing empirical evidence for the interventional role of cash management in the relation between corruption and firm performance, in the context of an emerging economy.

Green bonds and corporate performance: A potential way to achieve green recovery

In the post-COVID-19 era, the importance of green finance in green recovery is underlined. As a financial instrument serving green development, green bonds promise to raise funds to support climate- and environment-friendly projects. However, whether green bonds can improve corporate performance is of great concern to companies, affecting the long-term intrinsic driving force of green bond issuance. This study applies the dynamic difference-in-differences (DID) model to explore the impact of green bonds on corporate performance and its potential pathway by using the panel data of Chinese listed companies from 2010 to 2020. The main findings are as follows: (1) Green bonds can significantly increase corporate performance by an overall effect of 1.65%. (2) The positive effect of green bonds could be transferred and enhanced by possible mechanisms, including internal green patents and external social reputations. (3) The overall effect of green bonds varies among companies due to different ownership and eco-geographical locations. (4) Green bonds would motivate better corporate performance if the company is related to renewable energy or located in provinces with high renewable energy consumption. Therefore, it is necessary to promote green bonds, ultimately helping to achieve green recovery.

"Cooperative husband and wife" and family business performance—Empirical research based on listed companies from 2012 to 2019

Based on 2096 sample data of family-owned listed companies in my country from 2012 to 2019, this paper empirically analyzes the influence of characteristics such as the collaborative governance and political connection of husband and wife leaders on corporate performance. The study found that: The collaborative governance characteristics of husband and wife leaders significantly promote the performance of family listed companies, that is, husband and wife collaborative governance can improve corporate performance; in such family listed companies, the political connection of husband and wife leaders is conducive to promoting family business performance growth. The empirical results expand the research on family business performance, especially from the perspective of husband and wife controllers to verify that the characteristics of husband and wife are an important factor in promoting the growth of enterprise performance, indicating that the effective cooperation between male and female entrepreneurs and a good political background are conducive to the effective operation and sustainability of enterprises. How private enterprises break through the predicament and achieve sustainable and stable development has an important enlightening role.

"Cooperative husband and wife" and family business performance—Empirical research based on listed companies from 2012 to 2019

Based on 2096 sample data of family-owned listed companies in my country from 2012 to 2019, this paper empirically analyzes the influence of characteristics such as the collaborative governance and political connection of husband and wife leaders on corporate performance. The study found that: The collaborative governance characteristics of husband and wife leaders significantly promote the performance of family listed companies, that is, husband and wife collaborative governance can improve corporate performance; in such family listed companies, the political connection of husband and wife leaders is conducive to promoting family business performance growth. The empirical results expand the research on family business performance, especially from the perspective of husband and wife controllers to verify that the characteristics of husband and wife are an important factor in promoting the growth of enterprise performance, indicating that the effective cooperation between male and female entrepreneurs and a good political background are conducive to the effective operation and sustainability of enterprises. How private enterprises break through the predicament and achieve sustainable and stable development has an important enlightening role.

Foreign and domestic ownership as the mediator Between investment strategy and company performance

The study aims to examine the moderating effect of the ownership structure on the relationship strategi investasi and the comprehensive firm performance in ASEAN. Using data from financial reports and sustainability report. Samples are 34 nonfinancial companies in ASEAN 2007 until 2019. The sample testing method is unbalanced panel data regression to test hypothesis. Th results shows Foreign and domestic ownership moderate the relationship between strategi investasi and productivity and kinerja keuangan. This research also proves that foreign and domestic ownership cannot form the relationship between strategi investasi and kinerja lingkungan. This study gives additional evidence as confirmation of the theory of Industrial Organization about the implementation of the corporate strategy is influenced by external factors, namely the role of foreign ownership in improving corporate performance. This study gives new insight to the company about the importance of considering the strategi investasi based R&D and the role of foreign and domestic ownership to increase productivity, kinerja keuangan and kinerja lingkungan.