Influence Of Firm Characteristics Research Articles

The Influence of Firm Characteristics and Capital Structure on Sustainable Growth Rate

This study examines the impact of firm characteristics and capital structure on the sustainable growth rate of technology and consumer goods companies listed on JII, considering the moderating influence of industrial sector variables. The research utilizes secondary panel data sourced from annual financial reports. The population consists of JII-listed companies from 2018 to 2022, with a purposive sampling approach resulting in a sample size of six firms. The Structural Equation Modeling - Partial Least Square analysis findings reveal that firm size, characteristics, and capital structure significantly influence the sustainable growth rate, with firm size further enhanced through industrial sector moderation. The study contributes theoretically by emphasizing the significance of firm characteristics and capital structure while offering practical insights by showcasing how firms can stimulate sustainable growth through enhanced profitability and capital structure, thereby facilitating reinvestment and development.

Statement of Retraction: Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment

Statement of Retraction: Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment

Investment crowdfunding has little faith in sustainability! At least for the moment

ABSTRACT We analyze the influence of sustainability on the probability of achieving successful investment crowdfunding offerings. We use a sample of 1,741 investment crowdfunding offerings launched by 1,569 firms in the US during the period May 2016–September 2019 under the Form-C requirements of the JOBS Act. After accounting for potential endogeneity concerns affecting the degree of sustainability of each offering, results show that sustainability-related factors do not boost the chances of successful investment crowdfunding offerings. This result is not homogeneous across firms, operations, or financial environments. We obtain evidence on the influence of firm characteristics and on how offering affects the extent to which sustainability impacts success. Moreover, alternative funding sources and the market structure for funding portals also shape the influence of sustainability on offering success. Results are robust to considering both firm- and offering-level factors traditionally linked with success, as well as to different specifications of the econometric model, and to additional robustness tests.

Why did they get in trouble? The influence of firm characteristics and institutional distance on Chinese firms' foreign market entry attempt.

Despite the rich body of research on the outward foreign direct investment (OFDI) by Chinese multinationals, little attention has been given to the fact that China’s OFDI is facing a high failure rate even in their initial attempt to enter a foreign market. Grounded on institutional theory, this study provides a nuanced view of the expansion dynamic of Chinese multinational firms overseas using a unique dataset that contains both successful and troubled Chinese foreign market entry attempts between 2018 and 2021. We find that at the firm level, state-owned firms are more likely to face difficulties when trying to enter a new market compared to their private counterparts. Firms’ corporate social responsibility (CSR) reporting reduces the chance of failure. These effects are conditioned on the political, economic, and cultural distances between the home and host counties.

The Role of Capital Structure as Mediator in the Influence of Firm Characteristics and Maturity on Financial Performance

This study aims to determine the variables that can affect the financial performance of manufacturing firms listed on the Indonesia Stock Exchange (IDX) for the 2015-2019 period. A total of 59 firms were obtained using a non-probability approach with purposive sampling technique. The data was collected through an annual report and then analyzed using the Regression analysis tool and measured using a financial scale. The variables used in this study are: firm size, business risk, firm age, assets structure, growth rate, capital structure, and financial performance. Based on the results of data analysis and discussions that have been carried out in this study, it can be concluded that capital structure is able to influence the relationship between firm size and firm age on financial performance. However, capital structure cannot give a significant influence on the relationship between business risk, asset structure and growth rate on financial performance. In addition, this study can also prove that firm size, firm age, asset structure, growth rate and capital structure have a significant direct influence on financial performance.

Influence of Firm Characteristics on Cash Holdings: Evidence from Indian Iron & Steel Industry

Influence of Firm Characteristics on Cash Holdings: Evidence from Indian Iron & Steel Industry

How Firm Characteristic on Capital Structure Can Improve Technology Improvement in Malaysian Manufacturing SMEs?

Small and medium enterprises (SMEs) is a important contribution to boost the economies overall the world. In fact, SMEs always struggle to access the financing compared list company. There are several factors influence the capital structure decision in SMEs. This study focuses on manufacturing SMEs companies and examines the influence of firm characteristics (firm size, tangible asset, liquidity, profitability and firm growth) on capital structure towards technology improvement. The results showed only liquidity and firm growth were found to be positive significantly affect the external financing. Furthermore, internal and external financing also able improve the manufacturing’s technology performance. Conclusion, different firm characteristics have different leverage privileges which trying to attain optimal capital structure. The variations in the capital structures affect the costs of equity or debt and cost of capital. This study provides benchmarks for corporate managers in SMEs when making a company’s decision on the company’s performance.

RETRACTED ARTICLE: Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment

Statement of Retraction We, the Editor and Publisher of China Economic Journal, have retracted the following article: Abdelkader Derbali & Ali Lamouchi, “Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment,” China Economic Journal, 10.1080/17538963.2020.1715581 Since publication, it has been brought to our attention that this article has substantial overlap, with the article(s) listed below: Chapter 1 of A Dissertation Presented to the Faculty of the Graduate School of Cornell University In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy: Shuo Zhang, THREE PAPERS ON INSTITUTION, CORPORATE GOVERNANCE AND INTERNATIONAL EXPANSION OF CHINESE FIRMS, 2016-08-22. As this represents a serious breach of publishing ethics and of warranties made by the author with respect to originality and provenance, we are retracting the article from the journal. The authors have been informed. We have been informed in our decision-making by our policy on publishing ethics and integrity and the COPE guidelines on retractions.

Firm characteristics and export performance in Portuguese wine firms

PurposeThe purpose of this paper is to contribute to the determinants of export performance literature. The authors investigate the effect of firm characteristics on the Douro region wine firms export performance. The authors consider the Douro region, as it has the Portugal highest wine classification, the appellation d’origine contrôlée and undertakes the first position in the Portuguese wine production and export.Design/methodology/approachThe authors apply a pooling cross-sectional data set that includes 427 observations. The authors pooled two cross sections consisting of 214 and 213 firms for the years 2014 and 215, respectively. The firm export intensity and propensity are the dependent variables. Moreover, the firm size, age and productive efficiency are accounted as the firm characteristics. The authors use the ordinary least squares regression and the tobit and probit models for estimations.FindingsFirst, size is an influential factor to improve the export performance, and the importance of size is higher for younger firms. Second, there is a positive response from export intensity to age and this response is higher for smaller firms. However, there is a negative response from the export propensity to age and this negative response is higher for bigger firms. Third, there is weak evidence to support a relationship between efficiency and export performance.Research limitations/implicationsThis research and the presented results are undoubtedly under some limitations. The main limitation is about the data availability for all characteristics of a firm. For example, it will enrich the result if the authors add some other important variables such as production cost, research and development expenditure and the quality of produced wine by each firm to our analysis.Originality/valueThis research reveals that the influence of firm characteristics on the export performance of Portuguese wine firms is missing in the literature. The results provide a basis to Portuguese wineries to improve their export performance by applying the relevant strategies.

Influence of firm characteristics and the environment on hotel survival across MSMES segments during the 2007–2015 period

This paper analyses business survival in 11,558 micro, small, and medium-sized firms (MSMEs) between 2007 and 2015 in the Spanish hotel sector. Using hazard models, the aim is to identify the differences in survival determinants among firm sizes, quantifying the importance of the environment during the recent economic crisis. The results highlight the existence of differences. The environment is the main factor influencing the survival of MSMEs, especially in micro hotels. Regarding the hotel characteristics, the evidence shows that performance has a greater effect on survival in the medium hotels than in the micro and small hotels.

Capital Investment Appraisal Practices in the Emerging Market Economy of Sri Lanka

Manuscript type: Research paper Research aims: This study aims to investigate the prevalent choice of capital investment appraisal practices and the influence of firm characteristics on the choice of these practices. Design/Methodology/Approach: A survey is conducted by using a sample of 186 Chief Financial Officers (CFOs) from companies listed on the Colombo Stock Exchange platform in Sri Lanka. Research findings: This study reveals that the most popular capital investment appraisal techniques used in Sri Lanka encompass Net Present Value (NPV), followed by Internal Rate of Return (IRR), Payback (PB), Accounting Rate of Return (ARR) and Discounted Payback (DPB). As for the capital investment appraisal tools incorporating risks, Sri Lankan firms prefer uncertainty absorption in cash flows, followed by sensitivity analysis, probability analysis, scenario analysis, and adjusting the required returns. Emerging real options are used at the embryonic stage in Sri Lanka. The use of naive capital budgeting practices is mostly preferred by small firms managed mainly by CFOs with non-MBA educational qualifications with short tenures in the firms. In contrast, sophisticated and advanced capital budgeting practices are mostly used by large firms managed by MBA qualified CFOs with a long tenure in the firms. As for industry differences, ARR is primarily applied by non-MBA CFOs in most non-manufacturing firms. None of the other methods trigger any significant difference in terms of industry types. Theoretical contributions/Originality: This study makes contextual contributions by providing evidence of the application of capital investment appraisal practices in an emerging market economy, namely Sri Lanka. This study also provides parametric contributions as it identifies the influence of firm characteristics on the choice of capital budgeting practices. Practitioner/Policy implications: This study raises the awareness of top management, policy makers, practitioners and stakeholders of companies with regards to capital investment appraisal practices and the influence of firm characteristics on these practices. Research limitations/Implications: A more detailed study encompassing other countries with a similar culture like Sri Lanka is beneficial for further validation, replication and generalisation. Future studies may also consider looking at the influence of behavioral factors in making capital budgeting choices. Keywords: Capital Budgeting, Risk, Developing Countries JEL Classification: G30, G31, G32JEL Classification: G30, G31, G32

The Influence of Firm Characteristics on Corporate Social Responsibility and Its Impact on Stock Prices

There is a reciprocal relationship between the company and the community as its external environment. Therefore, the existence of the company cannot be separated from the community. From an economic aspect, companies must be profit-oriented and from the social aspect, the company must contribute directly to the community. Thus, the company is not only faced with responsibility in obtaining profits, but also must pay attention to its social and environmental responsibilities. This study aims to examine the influence of company characteristics including Profitability, Leverage, Managerial Ownership, Company Size on Disclosure of Corporate Social Responsibility (CSR) and the impact of CSR Disclosures on Stock Prices. This study was conducted on companies listed on the Indonesia Stock Exchange in the 2014-2016 period. The sample selection procedure is done by using purposive sampling method and the results are 14 companies that meet the criteria. The analysis technique that will be used is a two-stage regression analysis. The results of testing hypotheses show that the characteristics of the company that are proven to have an effect on CSR disclosure include: profitability and firm size while leverage and managerial ownership are not proven to influence CSR disclosure. Other findings indicate that CSR disclosure affects stock prices as measured by abnormal returns. This finding proves that if the company has good environmental and social performance, investors will respond positively through an increase in stock prices. Keywords: firm characteristic, Corporate Social Responsibility, stock price.

The influence of firm characteristics on profitability

PurposeThe purpose of this study is to inspect factors influencing profitability in the Italian hospitality industry during the period 2008-2016.Design/methodology/approachThis paper examines the profitability and its determinants using a sample of 2,366 Italian hotels. The author applies a multidimensional measure of profitability comprising return on equity, return on assets, occupancy rate and gross operating profit per available room. The author investigates variables influencing performance and includes them into five groups: market variables, business model, ownership structure, management education and control variables.FindingsThe results show that financial crisis, business model and ownership structure affect hotel firms’ profitability. Particularly, findings suggest that size, internationalization, location, accommodation as first activity and chain affiliation influence profitability positively.Research limitations/implicationsResults confirm the importance of firm-specific factors for evaluating the profitability of a hotel firm. Findings also provide new evidence for academics to assess factors that would guarantee profitability of hotels in developed countries such as Italy.Practical implicationsThis investigation offers valued information and strategic suggestions for hotel investors, hotel owners, hotel managers, tourism playmakers and government.Originality/valueThis paper offers an in-depth examination of the practices and characteristics of profitable hotels in Italy. Few empirical studies examined the determinants of performance in the European and Italian hospitality field so far. Hence, this study attempts to bridge the gap in prior literature on profitability of the Italian hospitality industry.

Determining firm characteristics and the level of voluntary corporate governance disclosures among Malaysian listed property companies

This study examined the level of voluntary corporate governance disclosures and the influence of firm characteristics (i.e., firm size, firm age, and firm market listing) on the level of these disclosures among Malaysian property listed companies. The check-list to measure the voluntary corporate governance disclosures was adopted from Malaysian corporate governance index 2011 by Minority Shareholder Watchdog Group (MSWG). The voluntary corporate governance disclosure practices and firm specific characteristics were obtained from annual reports of property listed companies on Bursa Malaysia for the period of 2012 to 2015. The findings suggested an improving voluntary corporate governance reforms in Malaysia. However, the firm size was found as an inflicting factor in determining the level and quality of voluntary corporate governance disclosure practices. On the contrary, the results found were contradicting the hypothesis related to firm age and firm market listing, as no relation of voluntary corporate governance disclosures and firm age and firm market listing. The study has made an interesting contribution toward the disclosure and corporate governance by contributing in understanding the importance of quality disclosure and good governance practices.

Influence of Firm Characteristics on the Impact of Disclosure and Transparency in the Performance of Companies Listed in Nairobi Securities Exchange

The performance of companies listed in the Nairobi Securities Exchange (NSE) has come under intensescrutiny after a general decline in market share prices of a number of firms between the years 2011–2015due to poor corporate governance practices. This study examined the relationship between disclosure &transparency and performance of listed companies at NSE with firm’s characteristics as the moderatingvariable. The study was anchored on Agency theory and Signaling theory. The study adopted bothdescriptive and correlational research designs on all 60 companies listed in Nairobi Securities Exchangeduring the period 2011-2015. Primary data was collected from companies CEOs or their representativeswhereas secondary data was obtained from the Capital Markets Authority and NSE. Descriptive statistics(mean and standard deviation) and inferential statistics (Pearson correlation and multiple regression) wereused to analyze the data. Findings showed a significant relationship between disclosure & transparencyand performance of firms listed at the NSE and that firm’s characteristics had a moderating effect on therelationship between disclosure and transparency and firm performance. Moderation was supported, sincethe calculated p value of the interaction was 0.000<0.05, the null hypothesis was rejected, hence firm’scharacteristics variable has significant moderating effect on relationship between disclosure &transparency and performance of firms listed at the Nairobi Securities Exchange.

Empirical Studies on Corporate Capital Structure in Vietnam

The purpose of the study is to examine the influence of firm characteristics (profitability, investment opportunity “market-to-book ratio”, tangibility, size, growth) and industry effect to capital structure of stock companies in Vietnam. The study uses OLS regression method to analyze a data set consisting of 522 non-financial companies listed in the two stock exchanges Ho Chi Minh Stock Exchange (HSX) and Ha Noi Stock Exchange (HNX) during the period from 2008 to 2011. The aggregate market-based leverage ratio in Vietnam is about 0.29. Despite the differences in business environment and management, this ratio is consistent to the statement from Frank and Goyal (2007) “Over the past half century the aggregate market-based leverage ratio has been about 0.32”. The empirical results show that profitability, tangibility, and growth are the major three determinants to debt ratios. The strong negative correlation between profitability and all debt ratios supports the prediction of the pecking order theory and it is considered as a serious defect of the trade-off theory. Tangibility has a strong positive correlation with long-term debt ratio but it has a negative correlation with short-term debt ratio. This result is consistent with the maturity mismatch principle “Firms tend to use long-term debt to finance fixed assets to prevent maturity mismatch; consequently, firms with high fraction of tangibility are expected to have high long-term debt ratio but low short-term debt ratio”. The strong positive correlation between growth and all debt ratios is consistent to the statement of Jensen and Meckling, 1976 “Debt disciplines managers and mitigates agency problems to free cash flow since debt must be repaid to avoid bankruptcy”. However, the fact that firms that have cash on hand actually issue debts is considered a serious problem of the pecking order theory (Frank and Goyal, 2007). As per the empirical results the corporate capital structure of the whole data is dominated by short-term debt, but the corporate capital structure at industry level is sometimes dominated by long-term debt. It is consistent with the result of Gilson (1997) “Industry leverage is used as a proxy for target capital structure”. According to Hovakimian et al. (2001), firms actively adjust their debt ratios towards the industry average. And similar persistence at firm level is reported in Lemmon et al. (2007). The differences of corporate capital structure at industry level and the similar persistence of capital structure at firm level reflect the role of industry effect as the crucial determinant of the target debt ratios.

Regional Differences in the Determinants of Cash Holdings

This study investigates the existence of differences in the influence of firm characteristics on the level of cash across geographic regions. I tackle this question by undertaking a meta-regression analysis and find that geographic regions affect the association between firm characteristics and the level of cash. The influence of cash-determinants is similar in North America and Europe but different in Asia. The cause of this difference remains unclear. Results indicate that Asian firms are potentially affected by country-level agency concerns or a lack of financing alternatives. Regional differences persist after controlling for firm-level information asymmetries, country characteristics, and temporal trends.

The Moderating Effect of Firm Characteristics on the Relationship between Strategic Change and Performance of Firms in the Alcohol Industry in Kenya

This paper examines the moderating effect of firm characteristics on the relationship between strategic change and performance of firms in the alcohol industry in Kenya. The alcohol industry makes a substantial contribution to the country's GDP. For instance, the East Africa Breweries Limited (EABL), Kenya was feted by KRA as the second top tax payer to the government for the 2011/2012 financial year. However, clear picture of the moderating influence of firm characteristics on the relationship between strategic change occasioned Alcoholic Drinks Control Act (ADCA), 2010 and performance has not emerged from previous studies. Specifically, the study investigated the effect of managerial capabilities, product dimensions and brand portfolio on performance of alcohol industry in Kenya. Previous studies dwelt on effect of limited aspects of strategic change such as marketing leaving out critical aspects like scope of strategies, resource deployment patterns and competitive advantages and the moderating effect of firm characteristics. The study was underpinned by the Resource-Based Theory (RBT). The study adopted a mixed method survey research design using qualitative and quantitative methods. The population was 25 local firms registered by Kenya Revenue Authority by 2012 and approved by National Authority for the Campaign Against Alcohol and Drug Abuse, (NACADA) by 2015. A saturated sample consisted of 100 respondents to get primary data. Multiple regression analysis was used to test the hypotheses that firm characteristics moderate the relationship between strategic change and performance. The R&lt;sup&gt;2&lt;/sup&gt; after incorporating interaction effect was .682 (p=.004) and ΔR&lt;sup&gt;2&lt;/sup&gt;=.033(p=004) implying firm characteristics significantly moderate the relationship.

The Determinant of CSR Disclosure of Mining Industry Listed in Indonesia Stock Exchange

The purpose of this study to determine and obtain empirical evidence about the influence of firm characteristics on a disclosure of corporate&nbsp;&nbsp; social&nbsp;&nbsp; responsibility (CSR) in the annual reports of mining companies listed on the Indonesian Stock Exchange (BEI). Corporate&nbsp;&nbsp;&nbsp; social&nbsp;&nbsp; disclosure needs to be done as a form of communicating the social and environmental&nbsp;&nbsp; impacts of economic activities on the organization of special interest groups; the characteristics&nbsp;&nbsp; of the company used as the study include profitability, leveraged, growth rate, firm size, market capitalization, media exposure, and ownership. This research is aimed to know the influence of financial performance according to management decision that doing corporate social responsibility to public society, investor and the stock holder. The Determinants of Corporate Social Responsibility have been investigated by scholars and practitioners by employing a variety of methods and factors. The purpose of this research is to test and analyze empirically the influence of profitability, leveraged, growth rate, firm size, market capitalization, media exposure and ownership toward corporate social responsibility disclosure. Sampling Method used in this study is the method of purposive sampling is the sampling method based on certain criteria. The Sample in this research mining companies that are listed at Indonesia Stock Exchange over six years period 2016 until 2012. This research used purposive sampling method. Only 16 companies met the criteria and taken as a sample. The Analyst used was multiple regression analysis, which is proceeded by a test consisting of the assumption of classical test for normality, heteroscedasticity test, a test of multicollinearity and autocorrelation. Hypothesis testing is F test and t test. The empirical evidence from this study show that firm size and board of commissioner have influence toward corporate social responsibility disclosure.While profitability,public share holder (ownership), growth rate, media exposure and leveraged&nbsp; do not have influence toward corporate social responsibility disclousure. Overall, the independent variables influence debt policy simultaneously. JEL Classification Code: G28

The influence of firm characteristics on earnings quality

This study examines the effect of firm characteristics on earnings quality using a sample of Spanish hotel firms during the period 2000–2011. First, we build a multidimensional measure of earnings quality including attributes as persistence, predictability, variability and earnings smoothing. Second, we examine variables that are potentially associated with earnings quality and sort these into five categories: market variables, business strategy, ownership structure, audit function and control variables. The findings suggest that the internationalization, the location, the ownership structure and the audit function influence earnings quality in hotel firms. This paper presents managerial implications for professionals, users of financial information, and academics.