Moderating Effect Of Firm Size Research Articles

Boardroom Strategies: How Governance Structures and Firm Size Influence Accounting Conservatism

This study explores the intricate relationship between corporate governance mechanisms—specifically Board Directors, Independent Commissioners, and the Audit Committee—and Accounting Conservatism, focusing on the moderating effects of Firm Size. The findings reveal that Board Directors have a statistically significant impact on Accounting Conservatism, primarily through their ability to provide oversight and challenge aggressive financial practices. However, the influence of Board Directors is moderated by Firm Size, as larger organizations often exhibit complexities that dilute their effectiveness. Similarly, the study underscores the pivotal role of Independent Commissioners in promoting conservative accounting practices. However, their impact is not amplified by Firm Size. The pressures faced by larger firms can lead to more aggressive financial reporting, thereby limiting the effectiveness of Independent Commissioners. Additionally, the Audit Committee is identified as a crucial governance mechanism in fostering Accounting Conservatism, but its effectiveness is also diminished in larger firms due to complex organizational structures. Overall, the research underscores the critical need for governance frameworks to be adaptive and tailored to the unique challenges posed by Firm Size. By recognizing and addressing these complexities, organizations can enhance the integrity and transparency of their financial reporting, thereby fostering trust among stakeholders and contributing to corporate accountability.

Impacts of Inventory Management Factors on Inventory Performance Measures: The Sri Lankan Wholesale Sector

Inventory management is a crucial component of sustainability, enabling companies to reduce expenses, enhance cash flow, and increase profitability. Inventory makes up a majority of current assets in the wholesale sector, where inefficiencies are bound to happen, given the large-scale inventory. This research focuses on identifying the factors and performance measures of inventory management and evaluating their interrelationships focusing on the Sri Lankan wholesale sector. The factors identified through a systematic review and industry experts’ interviews were then categorized into key areas with a thematic analysis. The 22 factors identified were grouped into the categories of organization, facilities and equipment, and processes and practices. The 24 performance measures were grouped into operational, customer satisfaction, and environmental categories. A questionnaire survey was conducted with 126 managerial-level employees of wholesale organisations. The partial least squares structural equation modelling (PLS-SEM) method is used to validate the relationship between the variables and the moderation effect of firm size on these relationships. The findings reflect that factors of organisation and facilities and equipment, influence the performance measures. Organisational factors were the most significant in influencing all three performance categories. For most relationships, the firm size did not have a moderation effect. This research assists wholesale businesses in achieving excellence and a competitive edge in the Sri Lankan market while finding answers to the ongoing business issues in the wholesale sector.

BOARD INDEPENDENCE AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA MODERATED BY FIRM SIZE

In the dynamic landscape of corporate governance, the interplay between board characteristics and financial reporting quality stands as a focal point for scholarly investigation. This study investigates the moderating effect of firm size on the relationship between board independence and financial reporting quality of listed oil and gas companies in Nigeria. The study employs a quantitative research design and the populations of the study were all the oil and gas companies listed on the floor of Nigerian Exchange Group from 2012 to 2021. The study used ten (10) oil and gas companies as the population and sample size. The study further used panel regression technique as method for data analysis. The result of the direct relationship revealed that board independence and board size negatively and significantly influence the financial reporting quality of listed oil and gas companies in Nigeria. In the case of moderated effect, the results indicate that firm size does not significantly moderate the influence of board independence on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the results obtained, it can be concluded that the interaction between firm size and board independence does not have a significant impact on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the findings, the study recommended that policymakers such as financial reporting council and Securities and Exchange Commission should enforce the code of corporate governance that will provide for mandatory independent directors with financial expertise. Secondly, the firm size should be properly put into consideration in constituting the number of non-executive directors on the board of directors of listed oil and gas companies in Nigeria.

Does CEO Compensation matter Aggressive Tax Planning in China: Evidence from Chinese Ownership Properties

This study aims to explore the impact of CEO compensation on aggressive tax planning (ATP) in China's A-share listed companies, and to reveal the moderating effect of firm size on CEO compensation and ATP. This study uses panel data analysis to explore the relationship between CEO compensation and ATP in China. From the perspective of listed companies in China, the largest developing market, during 2017-2022, the study provides evidence that CEO compensation is positively correlated with ATP, and that this relationship is also moderated by firm size. This study recognizes the crucial role of CEO compensation in the ATP of Chinese listed companies, and fills the gap of previous studies by studying the impact of CEO compensation. At the same time, the novel introduction of firm size as a moderating variable also highlights its effectiveness in Chinese corporate governance. The findings have important implications for participants in China's listed companies, managers' labor markets, and tax regulators. The unavailability of data, the sampling selection of companies, and the impact of focusing only on CEOs without considering other executives in the sample constitute limitations of this study. Although these limitations may weaken the explanatory power of the model, they set the avenue for future research.

Capital expenditure, tax avoidance and bank performance: Evidence from Jordanian banks

Tax avoidance and capital expenditure are critical financial strategies employed by banks to enhance profitability. Understanding their impact on bank financial performance is essential for policymakers and bank managers seeking to optimize financial strategies. This study is aimed to investigate the influence of tax avoidance (TAV) and capital expenditure on the financial performance of Jordanian banks, while exploring the moderating effect of firm size. Using regression analysis, the relationships between tax avoidance, capital expenditure, bank size, and bank financial performance were investigated. Financial data from Jordanian banks were utilized over a specified period. The study results refer that tax avoidance has a positive correlation with ROA (the correlation = 31.7%) and ROE (the correlation = 30.2%). The results reveal that tax avoidance significantly impacts bank financial performance, with banks employing tax avoidance strategies exhibiting higher returns on assets and equity. However, capital expenditure does not demonstrate a significant association with bank financial performance. Additionally, firm size does not moderate the link between TAV, capital expenditure, and bank financial performance. The non-significant impact of capital expenditure underscores the need for banks to explore alternative avenues for improving financial performance. These findings provide a valuable insight for policymakers and bank managers in devising effective financial strategies to optimize bank performance in the Jordanian context.

Exploring the impact of carbon emission disclosure on firm financial performance: moderating role of firm size

PurposeBased on stakeholder and legitimacy theory, this paper aims to investigate the impact of carbon emission disclosure on firm financial performance. Further, the study attempts to explore the potential moderating effect of firm size on this relationship.Design/methodology/approachThe study is based on BSE 100 Indian firms for the period of 2018–2019 to 2020–2021. The association between carbon emission disclosure and firm financial performance, along with the moderating role of firm size, has been explored through regression models.FindingsThe present study confirmed the significant and negative association between carbon emission disclosure and firm financial performance. Furthermore, results reveal that firm size positively moderates the relationship between carbon emission disclosure and firm financial performance.Social implicationsCarbon emission disclosure helps corporate organizations advance the issues of climate change disclosure both nationally and globally.Originality/valueTo the best of the authors’ knowledge, the current study is the first of its kind to explore the potential moderating effect of firm size on the relationship between carbon emission disclosure and firm financial performance. The current study provides significant novel insights into sustainability, climate change and finance literature.

Sentiment's Stock Impact: Company Size's Role In Stock Price Dynamics

This study aims to present empirical evidence on the impact of investor sentiment on stock prices, test the moderating effect of firm size on the relationship between investor sentiment and stock prices, and examine potential differences in this relationship across firms of varying sizes. The sample for this study consists of 246 companies listed on the main board of the Indonesia Stock Exchange from 2018 to 2022. EViews 12 were used for data processing. The findings of the study suggest that investor sentiment has a positive impact on the stock prices of firms traded on the Indonesia Stock Exchange. Additionally, the relationship between investor sentiment and stock prices is not moderated by company size, although the effect of investor sentiment on stock prices varies across different company sizes.

Integrating role of green buildings in achieving carbon neutrality in an era of climate emergency

AbstractThe Intergovernmental Panel on Climate Change recently stated that a swift ecological transition in transport, energy, and construction is required to reach the global emission reduction target. Around 40% of global emissions come from residential and commercial buildings. Therefore, this study developed a green building adoption model based on the Unified Theory of Acceptance and Use of Technology, which encourages firms to implement these novel green building technologies. For this, a survey of 333 respondents from Pakistani construction firms was conducted, and Partial Least Square Structural Equation Modeling approach was applied to validate the study's hypotheses. The findings showed that green building adoption provided invaluable insight by showing the strong associations between green building environmental concern, green building performance expectancy, green building effort expectancy, green building social influence, and green building innovation cost with green building behavioral intentions. Likewise, the findings also showed that green building behavioral intentions play a significant mediating role between the adoption of green buildings and its factors. The findings from this study suggest that intentions to engage in green building activities have a strong direct and mediating effect on green building adoption. Furthermore, the moderating effect of firm size demonstrated the significant differences between small, medium, and large firms size. Based on the study’ findings, the green building adoption model provided novel insights for governments and concerned stakeholders, including construction firms, to adopt green buildings for carbon neutrality in this era of climate emergency.

Effect of Asset Structure on Financial Stability: Moderating Role of Firm Size of Construction Firms in Nigeria

The study examined the moderating effect of firm size on the nexus of asset structure and financial stability of quoted construction firms in Nigeria. Financial stability was used as dependent variable while property plant and equipment, long term investment, current assets and intangible were used as independent variables while log of total assets which captures firm size was used as the moderating variable. A sample of 7 construction firms were used for the period of ten years

Financing Decisions and Financial Stability: Moderating Effect of Firm Size of Listed Industrial Goods Firms in Nigeria

The ability to make savvy financing decisions is now a key differentiator for corporate firms seeking to outpace competition and achieve sustainable growth. In view of this, this study examined the moderating effect of firm size on the nexus between financing decisions and financial stability of listed industrial goods firms in Nigeria. The study employed Altman’s Z-score in evaluating the financial stability of listed industrial goods firms in Nigeria and a combination of debt-equity ratio, interest coverage ratio, and total debt ratio as key predictors. Altman’s Z-score assisted in gauging firms’ financial stability over the research period. Additionally, the natural logarithm of total assets was integrated into the analysis to further refine the predictive model and to achieve the study objectives. The study adopted an ex-post facto research design and utilized a panel data of one hundred and fifty (150) pooled observations gathered across a sample of ten (10) listed industrial goods firms in Nigeria over a period of fifteen (15) years (2009-2023). The study employed descriptive statistics tools, Pearson correlation analysis and Fixed effects regression technique via Eviews 10.0 statistical package in analyzing the data. The study findings revealed that with the moderating effect of firm size, debt equity ratio has an insignificant negative relationship {(Coeff. = -0.000247 (0.6571)} with financial stability of listed industrial goods firms in Nigeria while interest coverage ratio has a significant positive relationship {Coeff. = 2.322405 (0.0173)} with financial stability of listed industrial goods firms in Nigeria. It also revealed that total-debt ratio has an insignificant negative relationship {Coeff. = -0.002365 (0.4236)} with financial stability of listed industrial goods firms in Nigeria. It was thus concluded that firm size has a significant moderating effect on the relationship between financing decisions and financial stability of listed industrial goods firms in Nigeria. The study recommended, amongst others, that firms should consider their size when making financing decisions and adjust their strategies accordingly for enhanced financial stability, growth prospects, and overall success.

The effects of exploration and exploitation on stock price movement: the moderating effect of firm size and market condition

The effects of exploration and exploitation on stock price movement: the moderating effect of firm size and market condition

The effects of exploration and exploitation on stock price movement: the moderating effect of firm size and market condition

The effects of exploration and exploitation on stock price movement: the moderating effect of firm size and market condition

Antecedents and outcomes of open innovation over the past 20 years: A framework and meta‐analysis

AbstractThe open innovation paradigm emphasizes that firms can improve their innovation performance by collaborating with other firms. However, there is no consensus in the open innovation literature regarding what drives firms' implementation of inbound and outbound open innovation and how the two types of open innovation influence innovation and firm performance. The present meta‐analysis synthesizes previous research to advance our understanding of open innovation by reexamining its antecedents and its moderating effects on innovation and firm performance. Using data from 157 articles, our results show that appropriation strategy, formal organizational structure, learning culture and top manager competence drive inbound open innovation, while innovation strategy, appropriation strategy, learning culture, and top manager competence drive outbound open innovation. In addition, we find that absorptive capacity positively moderates the positive impact of inbound and outbound open innovation on innovation performance. However, industry type (i.e., high‐ and low‐tech) is not found to moderate the effect of open innovation on innovation or firm performance, suggesting that both high‐ and low‐tech firms can equally reap benefits from open innovation. Furthermore, this study also partially supports the moderating effects of firm size and cultural value (individualism vs. collectivism) on the open innovation—performance relationship. These findings collectively suggest that the effects of inbound and outbound open innovation on performance are subject to contextual factors. Although this meta‐analysis does not allow us to generate new theories in the open innovation literature, it offers valuable insights to both academics and practitioners regarding factors affecting the implementation of open innovation and its performance implications.

The Impact of ESG Disclosure Quality on Sustainable Growth and Asset Pricing Efficiency in China's Industrial Sector

This research analyzes the impact of Environmental, Social, and Governance (ESG) disclosure quality on listed industrial companies in China's sustainable development potential, stock pricing efficiency, and the moderating effects of firm size and ownership structure. Panel regression and moderating effect models are applied in the research to investigate the links using data from Bloomberg's ESG Disclosure Score and China Stock Market & Accounting Research (CSMAR) from 2010 to 2020. The findings reveal that quality ESG disclosures significantly enhance both sustainable growth and stock pricing efficiency, with larger firms showing a more substantial impact. However, state-owned enterprises demonstrate a weaker impact compared to private firms. These findings suggest that ESG disclosure quality can boost investor confidence in a firm's long-term growth potential, thereby attracting capital and enhancing the accuracy of asset pricing. This work facilitates in the comprehension of the function of ESG disclosures in the monetary markets and offers guidance to Chinese businesses, investors, and regulatory agencies.

Impact of Logistics 4.0 Technology Adoption on Logistics Performance: The Mediating Effect of Logistics Innovation Capability and the Mediated Moderation Effect of Firm Size

Purpose - This study aims to identify the relationship between logistics companies’ Logistics 4.0 technology adoption with logistics innovation capability and logistics performance, and analyze the mediating effect of logistics innovation capability and the mediated moderation effect of firm size through logistics innovation capability.
 Design/methodology - Research models and hypotheses were established based on prior research related to Industry 4.0, Logistics 4.0, logistics technology, logistics performance, and firm size. The survey was conducted on the employees of logistics companies, and exploratory factor analysis, reliability analysis, confirmatory factor analysis, discriminant validity analysis, structural equation model analysis, mediation effect, moderation effect, and the mediated moderation effect analysis were performed.
 Findings - The adoption of Logistics 4.0 technology was found to significantly affect logistics innova- tion capability and logistics performance. Logistics innovation capability was found to significantly affect logistics performance. Moreover, logistics innovation capability was found to have a significant mediation effect on the relationship between Logistics 4.0 technology adoption and logistics perfor- mance. The moderation effect based on firm size was found to have a partial effect on logistics in- novation capability and logistics performance, but the mediated moderation effect was not significant.
 Originality/value - This study is meaningful in that it empirically analyzed the relationship of Logistics 4.0 technology adoption with logistics innovation capability and logistics performance, the mediating effect of logistics innovation capability, the moderation effect of firm size, and the mediated moderation effect of firm size, which were not addressed in previous studies.

The impact of longer audit committee chair tenure and board tenure on the level of sustainability disclosure: The moderating role of firm size

AbstractThe present research endeavors to examine the moderating effect of firm size on the relationship between the tenure of the audit committee chair and the board of directors with sustainability disclosure. Data from 592 non‐financial firms listed on the ASE from 2014 to 2021 were analyzed. The findings indicated that a longer tenure of a board of directors leads to increased sustainability disclosure, and firm size positively moderates this relationship. Moreover, the research outcomes indicated that the audit committee chair tenure had a positive yet non‐significant correlation with sustainability disclosure, with no moderating effect of firm size on this relationship. This study provides valuable insights for stakeholders, including investors, managers, and regulators, particularly in developing economies, by demonstrating the influence of corporate governance (CG) on sustainable development. The examination of firm size as a moderating factor offers a unique contribution to the existing literature, thus providing a deeper understanding of the indirect impact of CG on sustainability reporting.

Modeling the significance of green orientation and culture on green innovation performance: moderating effect of firm size and green implementation.

The current global trend in sustainable business practices is to optimize green innovation performance. To protect the environment and maintain their own survival, organizations must strengthen their green innovation capabilities. Drawing on the recourse-based view and ecology modernization theory (EMT), this study examines the direct effect of green strategic orientations, green entrepreneurial orientation, green market orientation, green innovation orientation, and green organizational culture on the firm's green innovation capability, as well as the mediating effect of green innovation capability on the relationship of these four factors and green innovation performance. Besides, this study also explored the moderating effects of green management system implementation and firm size on the association between green innovation capability and green innovation performance. To test the hypothesized model, a questionnaire survey was administered to gather responses from 293 medium-sized and large manufacturing firms operating in Pakistan. The partial least squares method was used for data analysis. The results revealed that green entrepreneurial orientation, green market orientation, green innovation orientation, and green organizational culture positively impacted green innovation capability, which subsequently positively influenced green innovation performance. Moreover, effective implementation of green management systems can bolster the effect of green innovation capability on green innovation performance, and the mediating effect of green innovation capability has also been confirmed. These indicated that the management of medium and large manufacturing firms operating in Pakistan should focus on encouraging green innovation and training employees regarding the latest eco-friendly technologies to attain performance and sustainable development goals. Policymakers should implement green business development programs and offer rewards or penalties for promoting compliance. The present study contributes greatly to the literature by applying EMT as an alternative to address the mediating role of green innovation capability and the moderating effect of green management system implementation in enhancing firms' green innovation performance.

The Relationships between Current Ratio, Firm Age, Good Corporate Governance, and Corporate Social Responsibility: The Moderating Effects of Firm Size

Few studies have explored how firm size moderates the effect of the current ratio, firm age, and good corporate governance on corporate social responsibility. This research examined the effect of current ratio, firm age, and good corporate governance on corporate social responsibility. It explored the moderating effects of firm size on the relationships between current ratio, firm age, and good corporate governance on corporate social responsibility among mining sector companies listed on the Indonesia Stock Exchange from 2017 to 2021. Purposive sampling was used to select 17 different mining firms that met the study's criteria. By applying a moderated regression analysis, the results indicated a negative and statistically insignificant relationship between the current ratio and corporate social responsibility. Corporate social responsibility was positively affected by the maturity of the company and by its commitment to ethical business practices. Meanwhile, there was an inverse relationship between firm size and corporate social responsibility. Furthermore, firm size did not affect the relationship between the current ratio and corporate social responsibility, nor the relationship between firm age and corporate social responsibility. This study revealed that firm size weakened the link between good corporate governance and corporate social responsibility.

A study on SMEs' crowdsourcing capability for new product developments: The moderating effects of firm size and business type

A study on SMEs' crowdsourcing capability for new product developments: The moderating effects of firm size and business type

Effect of Firm Size on the Association between Capital Structure and Profitability

This paper examines the association between capital structure and firm profitability through the moderating effect of firm size. The analysis of financing choice and firm profitability in developing countries is interesting because of the differences between the characteristics of their firms and those of companies in advanced economies. This research utilized secondary data obtained from the published annual financial statements of 156 manufacturing companies listed on the Tehran Stock Exchange (TSE) over the period 2011–2019. The given description was evaluated using a panel econometric approach, namely, the fixed-effects regression method. The results displayed that profitability is negatively affected by capital structure decisions. However, firm size is positively related to profitability. The robust findings also illustrate that the size of a firm plays a significant role in improving the influence of capital structure choice on the firm’s profitability. Similar to other emerging economies, in Iran, when internal finances are inadequate, long-term debt is used as an alternative for financing. These results provide evidence to support the hypothesis of the trade-off theory, which explains the relationship between firm size, capital structure, and profitability. These findings provide significant information from a developing country, Iran, that confirms the argument of the trade-off theory and provides substantial guidance for sector management.