Non-financial Factors Research Articles

Do non-financial factors influence corporate dividend policies? Evidence from business strategy

In this paper, we examine the influence of business strategy on dividend policy. We find that firms following an innovation-oriented strategy (prospectors) pay significantly lower dividends than those following an efficiency-oriented strategy (defenders). Our cross-sectional analyses show that such association is more pronounced among firms with greater investment opportunities and superior performance. Further analysis reveals that prospectors make significantly more capital investment, consistent with prospectors paying fewer dividends to finance their investment activities. Moreover, we address potential endogeneity concerns by implementing (i) a triple-difference analysis (DiDiD) that exploits an exogenous shock that hinders innovation through curbing the supply of highly skilled employees and (ii) an instrumental variable approach. Our results are robust to a propensity-score-matched (PSM) analysis, the inclusion of individual business strategy components, and the use of alternative measures of the dependent variables. Overall, our findings highlight business strategy as an inherent and non-financial determinant of dividend policies.

Impact of Motivational Factors on Teachers of Higher Education

Since teaching is one of the most important and noble profession in the world it is very important to continuously evaluate the system to brings in better prospects for a teacher. Teaching fraternity is the pillar of educational system of any Nation. Teachers play an imperative role in building the personality of individuals. The paper helps us in assessing that how teachers’ motivation level is critical for the successful functioning of educational system and for improving the quality of educational institutions. Being a multifaceted phenomenon, motivation brings along a wide range of struggle for both employers and employees. The aim of this paper research is to identify and discuss the factors that influence higher education teachers’ motivation and impact on their lives. The dimensions of private institutes/universities can be understood with more humane angle. The study has resulted into an indication that teachers’ motivation level is affected by the several work related factors. It is advent that private institutions faculty members are motivated by financial factors and academic growth opportunity and supportive work environment to name a few as non-financial factors. The empirical study of intrinsic and extrinsic dimensions of motivation gives us food for thought to develop or redesign the policies of higher education employees with more sensitivity.

PENGARUH FAKTOR FINANSIAL DAN NON FINANSIAL TERHADAP NILAI PERUSAHAAN SUB SEKTOR PULP DAN KERTAS

This Study aims to examine financial an non-financial factors on firm value in the pulp and paper listed on the Indonesia Stock Exchange. The financial factorsis seen from liquidity and profitability, while non- financial is seen from the board of directors and independent commissioners, firm value is measured using Tobin’s Q. The population uses the pulp nad paper sub sector for the period 2013 -2020 with sampling using purposive sampling technique, there are 7 companies that are sampled. The method used multiple linear regression with SPSS software. Based on the test result, shown that independent commissioners, liquidity, and profitability have a significant effect on firm value, while the board of directors has no effect on firm value.

Improving sustainable agriculture promotion: an explorative analysis of NRCS assistance programs and farmer perspectives

ABSTRACT Unsustainable agriculture practices are undermining the world's future ability to reliably produce food. Assistance programmes, such as those offered by the Natural Resource Conservation Service (NRCS) of the United States, can increase the uptake of sustainable practices, yet implementation of these alternatives in the US remains discouragingly limited. In this context, we used an interdisciplinary approach involving quantitative and qualitative data to assess the current efficacy of NRCS assistance programmes and identify areas for improvement. To do so, we first analyzed national reports of NRCS expenditures and acres treated over the last 15 years and then distributed an explorative survey to farmers and ranchers throughout Utah state. Our NRCS programme analysis suggested that historical increases in expenditures have been ineffective at increasing the number of acres treated. The survey responses indicated that both financial and non-financial factors were influential in farmer decisions. Farmers that assigned a high importance to sustainable practices were motivated by public perception and environmental stewardship while those that assigned a moderate importance were motivated by the potential return on investment. Overall, participants in NRCS programs reported more positive outcomes than expected by non-participants. We hope the findings from this study can guide future research and inform efforts to improve NRCS assistance programmes in Utah and other regions in the US and elsewhere.

Labour productivity improvements from energy efficiency investments: The experience of European firms

Energy efficiency investments are essential to transition to a carbon-neutral economy. Nevertheless, despite being financially viable, many energy efficiency investment opportunities do not materialise. The existing literature attributes this situation to financial and non-financial factors. Research suggests that many firms focus only on direct energy savings and neglect non-energy benefits that include increased labour productivity. Up to date, due to the lack of high-quality data, few studies attempted to quantify how the energy efficiency investments affect firm-level outcomes other than the reductions in energy consumption. This paper overcomes this barrier by using novel data from a firm-level survey conducted by the European Investment Bank. The survey covers more than 15,000 firms in 27 European Union member states and the United Kingdom during 2018–2019. This study investigates the relationship between the energy efficiency investments and the labour productivity of the European firms and uses instrumental variables methodology to account for potential endogeneity. The results show a positive and causal relationship between energy efficiency investments and labour productivity. The findings of the paper suggest that firms can benefit much more from the energy efficiency investment than what is often assumed, and highlight a need for government policies that would increase firms’ awareness of the non-energy benefits.

Exploring the Relationship Between Family Involvement and Innovative Capability in Chinese Family SMEs: The Role of HR Redundancy

The aim of this research is to investigate the relationship between family involvement and innovative capability in Chinese family small-medium sized enterprises (SMEs). Although previous studies based on the behavior agency model have investigated how financial factors could influence the relationship between family involvement and innovative capability, there is a dearth of studies with an emphasis on the impact of non-financial factors. Notably, the moderating role played by family firms’ human resource (HR) redundancy in this relationship has not been sufficiently explored in the literature. Our research analyzed secondary data of Chinese family SMEs listed in the China Stock Market and Accounting Research (CSMAR) database. Standard multiple regression and moderated multiple regressions were conducted to test the main and moderating effects, respectively. According to the results of our study, the three dimensions of family involvement (ownership, management, and governance) have a negative influence on Chinese SMEs innovative capability, but this influence can be partially moderated by HR redundancy. Based on the socio-emotional wealth (SEW) perspective, this research contributes to family business literature by addressing previously noted research gaps in related studies.

Detection of financial and non-financial factors affecting the acceptance of going concern opinion

<p>Financial statements are source of information for investors in determining which companies to invest in. Therefore, the reliability of financial statements has an important role. In order for financial reports to be reliable, there are two important things, namely reporting quality and earning quality factors. The auditor gives a fair opinion as a form of reporting quality. Thus, the going concern opinion is one of the opinions given by the auditor on earning quality. This study tries to examine what factors encourage the auditor to give going concern opinion to the company. The method used is a quantitative method using inferential statistics. In particular, the instrument used is logistic regression. The findings of this study are that companies that tend to get a going concern opinion have certain characteristics, among others, are large companies that have profits and have a fairly high level of debt. This finding can then be used by investors to identify companies that have the potential to get a going concern opinion<em>.</em></p><p><em> </em></p>

NON-FINANCIAL FACTORS AFFECTING FINANCIAL PERFORMANCE IN INDONESIAN NCSR AWARD RECIPIENT COMPANIES

Non financial factors that affect financial performance have many different findings that cause research gaps. This study analyzes the influence of Corporate Social Responsibility (CSR) in more detail instruments by proxying it into variabel Employee Relations, Community, Product, Environment and the Good Corporate Governance (GCG) are proxied into Number of Independent Board of Commissioners, Institusional Ownership, Audit Quality on Return on Assets as the financial performance from companies that receive awards from the National Center of Sustainability Reporting Indonesia. The research uses partial test and simultaneous test using SPSS. Because the impact of CSR and GCG is not directly related to performance, the finance performance variable is calculated one year after the company implements CSR and GCG. The result showed that the implementation of CSR and GCG has a significant effect simultaneously on financial performance. Partially which has a significant effect is CSR with the proxy of community and environment variable. Non-financial factors (CSR and GCG) affect 21,4% of the company’s financial performance.

For love or money? The effect of deadline proximity on completion contributions in online crowdfunding

Purpose The authors investigate whether the individual “completion contributions” that enable online crowdfunding campaigns to meet or exceed their targets tend to be larger in relative terms when made nearer to the funding deadline. As these contributions are likely to have a disproportionate impact upon campaign outcomes, the authors assess whether the investment patterns they observe are consistent with the theory of impact philanthropy.Design/methodology/approach The authors use campaign-level data incorporating observations on campaigns from reward (both all-or-nothing, AoN and keep-it-all, KiA), donation and equity-based platforms. To the knowledge of the authors, the coverage of the data is unparalleled elsewhere in the crowdfunding literature. Using these data, the authors analyze whether completion contributions tend to vary contingent upon both the proximity of the deadline and form of crowdfunding.Findings The authors find that completion contributions tend to vary significantly and positively with proximity to funding deadlines. The authors also find that this relationship tends to be more pronounced among AoN than for KiA campaigns, as well as for donation-based platforms compared with equity-based platforms. Altogether, the patterns of behavior observed are consistent with the theory of impact philanthropy.Originality/valueThe authors help develop a better understanding of the behaviors of contributors to online crowdfunding campaigns and whether those behaviors are consistent with altruistic motivations. The findings also have considerable value in understanding the non-financial factors associated with the informal financing of business startups.

Analysis of Motivation Factors: Dependance on Personal and Professional Characteristics of Employees

Abstract Organizations invest in different types of resources, which enable them to achieve and maintain their market position and remain competitive. With global competition and changing market environment, one of the key resources, which considerably contributes to improvement of organizations’ competitive posture, are human resources, i.e. employees. The subject of research presented in this paper are factors of employees’ motivation. The aim of the research is to determine the impact of certain factors on employee motivation, based on the importance that different motivation factors have, depending on certain personal and professional characteristics of employees. Based on the results of the survey, the most important factors of motivation are financial factors, specifically the “salary” and “financial rewards”, as well as “job security” as non-financial factor. The variance of repeated measurements showed that there is statistically significant influence of financial motivation factors on employee motivation. However, the results of the analysis of the variance indicate that it is necessary to find the appropriate combination of financial and non-financial motivators, having in mind different characteristics and needs of employees, in order for the employee motivation system to show the expected results.

Non-Financial and Financial Factors Influencing the Mode of Life of the Gher Farmers from the Western Coastal Areas of Bangladesh

Non-Financial and Financial Factors Influencing the Mode of Life of the Gher Farmers from the Western Coastal Areas of Bangladesh

Guest Editorial: Enhancing hosting capability for renewable energy generation in active distribution networks

Guest Editorial: Enhancing hosting capability for renewable energy generation in active distribution networks

Determinants of Firm Value in Indonesia: Financial Factors or Non Finan-cial Factors?

Firm value plays an important role for public companies because it can affect investor perceptions. The company is always trying to improve the quality of the company to be able to compete in the capital market to attract investors. The success of the company can only be achieved through good company management, improving company performance, so that in the end it can increase company value. This study aims to examine the factors that affect firm value in Indonesia. The factors used in this study are corporate social responsibility, environmental disclosure, ownership concentration, and earnings quality. The research sample is manufacturing companies on The Indonesia Stock Exchange with a research period of 2017-2019. The research sample consists of 127 observations. Data were analyzed using linear regression. The results of this study show that corporate social responsibility, environmental disclosure, and ownership concentration affected firm value, while earnings quality did not affect a firm's value in Indonesia. This study implies that non-financial factors determine to firm's value more than financial factors.

Determinants of Firm Value in Indonesia: Financial Factors or Non Finan-cial Factors?

Firm value plays an important role for public companies because it can affect investor perceptions. The company is always trying to improve the quality of the company to be able to compete in the capital market to attract investors. The success of the company can only be achieved through good company management, improving company performance, so that in the end it can increase company value. This study aims to examine the factors that affect firm value in Indonesia. The factors used in this study are corporate social responsibility, environmental disclosure, ownership concentration, and earnings quality. The research sample is manufacturing companies on The Indonesia Stock Exchange with a research period of 2017-2019. The research sample consists of 127 observations. Data were analyzed using linear regression. The results of this study show that corporate social responsibility, environmental disclosure, and ownership concentration affected firm value, while earnings quality did not affect a firm's value in Indonesia. This study implies that non-financial factors determine to firm's value more than financial factors.

The Role of Corporates in Governing Carbon Dioxide Removal: Outlining a Research Agenda

With 1,500 companies now estimated to have set net zero targets, corporate engagement with carbon dioxide removal (CDR) has gained substantial momentum. Yet despite the corporate sector becoming a key domain of CDR decision-making, corporates have not received research attention as influential actors in the governance of CDR. This paper provides a perspective on how corporates influence and enact de facto governance of CDR. We collate a preliminary evidence base regarding possible modes of CDR governance by corporates. Focusing on voluntary corporate engagement with CDR, we examine how and why firm-level decision-making takes place, and interrogate the implications of such activity. We find that the current literature focuses on techno-economic attributes of CDR solutions as drivers of corporate engagement; however, the ability for corporates to formulate a (business) case for engaging with CDR is potentially shaped by a broader array of financial and non-financial factors that are currently overlooked. This gives corporates the influence to define what and how to govern, an inherently “political act.” We finally highlight possible lenses for future research, noting lessons to be drawn from climate justice, anticipatory governance, responsible innovation, and futures literatures. These could provide a deepened understanding of the dynamics and implications of current de facto CDR governance, and allow this to be challenged where appropriate. Ultimately, without awareness and oversight of how CDR is being governed in the real world, policy and governance research may not be successful in driving us toward desired net zero futures.

Factors Affecting Bond Ratings On Banking Companies On The Indonesia Stock Exchange, 2012-2016

The purpose of this study aims to determine the factors that affect the level of liability in banking companies listed on the Indonesia Stock Exchange. Design/methodology - This research is very associative research. The type of data used in this study is secondary data obtained by accessing the BEI Website (www.idx.co.id). To collect data, researcher documentation used. This research is considered as a quantitative analysis. To analyze the data, the researcher used Normality Test, Multiple Linear Regression and Hypetheses Test (F Test and T Test) with a significance value of 5%. Findings – The results show that there are financial factors affecting the current ratio, debt to equity ratio, and return on assets and there are also non-financial factors that affect maturity and security towards the level of liability in Banking Companies. The t-test (partially) shows that there are factors that affect the current ratio, maturity, secure towards the level of liability, and not for the ratio of debt to equity and return on assets.

Application of the logistic regression model to assess the likelihood of making tangible investments by agricultural enterprises

This paper presents the methodological assumptions of a logistic regression model and presents an example of the use of this type of models to assess the factors determining investment decisions of agricultural enterprises. The aim of the study was to identify and evaluate the factors influencing the decisions of agricultural enterprises in Central Pomerania with respect to tangible investments using the logistic regression model. The results of the research proved that the probability of making tangible investments by agricultural enterprises in Central Pomerania is influenced by financial factors: the structure of the use of capital expenditure (x1, x4); use of traditional sources of financing (x5, x6, x8); use of alternative sources of financing (x13); variable combining the use of traditional and alternative sources of financing (x14), as well as non-financial factors: characteristics of the enterprise (x17) and behavioral aspects (x18). It was also established that financial factors have a greater impact on the development of tangible investments in agricultural enterprises in Central Pomerania than non-financial factors.

A Hydroponic Vegetable Business Development Strategy: A Case Study of CV Casa Farm

Abstract. The Business Development Strategy for CV Casa Farm emerged from an analysis of the external and internal environments mapped using a SWOT matrix with a focus on weaknesses and opportunities. Several production problems, such as yellowing of vegetables, rotting roots, and the spread of disease that caused production failures and planting media waste, could be reduced to minimize costs and increase productivity to meet the demand for vegetables in the city of Bandung. Problems were also identified with management and governance, such as overlaps in the allocation of tasks causing unfavorable work performance and decreased productivity. Applying IoT technology could increase vegetable weight by 37.7% and reduce production failures from 12.85% to 7.14%. Based on non-financial factors, including the market, production, organization and management, human resources, and collaboration, the implementation of IoT technology was judged to be feasible. Based on a financial and partial analysis, the investment feasibility obtained NPV> 0 of Rp1,247,103,045.33, with a Net B/C value of 2.63, Gross B/C of 1.62, IRR acquisition of 31%, a payback period of four years and three months, and an increased profit of Rp27,849,345.00, the business development strategy was judged to be feasible using IoT Simon Kori technology because it met the investment criteria and brought additional benefits. In the sensitivity analysis, a 20% decrease in the product selling price was shown to have an impact on the feasibility of implementing IoT. An incremental net benefit analysis indicates that the net benefit from applying IoT technology would be Rp2,402.477,276.13. Keywords: CV Casa Farm, hydroponic vegetable, IoT technology, productivity improvement, SWOT

P/B Ratio to Stock Price and Correlation Analysis of Other Financial Indicators

In recent years, the stock market of Mongolia has become more active than ever with increased number of IPOs and SPOs and addition of number of new products in the market. With the objectives to determine and estimate the relations between P/B ratio to stock rates and other financial indicators. We have conducted the research and analyzed the 2007-2020 trading reports, the dividends distribution, and the financial reports of 42 companies with active trading lists on the Mongolian Stock Exchange identified as I and II classification stocks. We have selected the indicators such as, the size of company, dividend payout ratio, return on assets, return on equity, earnings per share, growth of earnings after taxes to be identified as other financial indicators and we have finalized the estimation. According to the results of regressive analysis, based on 565 monitoring data of 42 companies, the indicators such as, return on assets, return on equity, earnings per share have shown direct correlation to the stock rates; however, other indicators have shown no correlation at all. Thus, further studies on the non-financial factors that have impacts on P/B ratio of stock rates have to be done thoroughly by researchers and analysts.

Analysing the Determinants of Insolvency and Developing the Rating System for Russian Insurance Companies

In this study, we analyzed the determinants of insolvency for Russian insurance companies (ICs). The relevance of the paper is underpinned by strong interest of investors to emerging insurance industry due to their strong growth, which, in turn, comes with elevated risk. Thus, identification of key drivers of ICs insolvency risk becomes the critical task. Literature review indicated that there are only a few studies at this topic. Logistic regression was chosen as the modeling method. The dataset included 161 Russian ICs over the period 2013-2019. The key financial drivers of credit risks of Russian ICs were profitability, liquidity of assets and premium collection discipline. Among non-financial factors efficiency of strategic management, management of sales channels and credit quality of reinsurers were significant. Macroeconomic variables such as insurance penetration and inflation are also important drivers of ICs creditworthiness. The model had good predictive and discriminative power (accuracy ratio of 0.9 and KS statistics of 0.6). We also compared these drivers with those in advanced markets and analyzed similarities and differences. Lastly, we developed the rating system consisting of 17 rating grades and estimated probability of default for each grade. Results of statistical tests confirmed the correctness of calibration of the rating system, stability of the population and good distribution of observations within the rating scale. The results of the study can be utilized by researchers exploring ICs risks in other emerging markets. The rating system can be used by financial institutions, rating agencies or regulators to assess and monitor of credit quality of ICs in Russia.