Objective Financial Data Research Articles

CEO Optimism on Corporate Risk Management: Evidence from China

Based on impression management theory and upper echelons theory, this study constructs an integrated mediating model involv-ing external investors. It aims to explore the impact of CEO optimism, a positive psychological advantage, on corporate crisis management performance. The research uses machine learning based on LSTM to analyze content text, measuring CEO displayed optimism. It also uses a Python program to crawl objective financial data and third-party objective reports after corporate crises occur, evaluating investor confidence and corporate crisis management performance. This study reveals the positive psychological advantage factors of leaders that enhance corporate crisis management performance and potential mediating mechanisms. It deepens our understanding of how CEOs improve corporate crisis management performance, provides practical insights for en-terprises and managers, and offers reference value for future research.

Picture Content in Annual Reports Matters: Framing as a Strategy for Impressing Potential Investors

This study examines the association between a firm's economic situation and the use of pictorial content in its annual reports. In other words, we shed light on whether firms in a specific economic situation intentionally choose particular picture content for the illustrations in their annual reports. We argue that the content of pictures can be used as an additional disclosure instrument to highlight signals beyond objective financial data, that is, an attempt to moderate readers’ decision‐making processes. Corporate disclosure can be designed at multiple levels of corporate communication to influence addressees’ perceptions. We analyse 4770 annual reports from FTSE‐350 firms between 2000 and 2021 using Google Vision API's artificial intelligence to examine if this special form of corporate disclosure is affected by corporate economic performance. Our findings suggest that decisions about pictorial elements in annual reports are associated with firms’ economic situation. Our paper contributes to the integration of communication theory, behavioural finance and voluntary disclosure theory to comprehend the use of pictorial information in annual reports. This study broadens the rare evidence regarding information design choices in annual reports with a particular focus on picture usage. By acknowledging the interdependence between framing and voluntary disclosure, researchers and practitioners can refine communication strategies and interventions to promote honest and successful financial disclosure whilst also considering the various communication theory factors involved.

TMT’s Impact on Company Performance: Unraveling the Role of Strategic HRM Choices

Purpose: The article explores the intricate relationship between top management teams (TMTs), strategic HRM, and company performance. It investigates whether TMT attributes influence strategic HRM choices, ultimately contributing to improved company performance. The study introduces mediation models to unravel how two TMT strategic HRM choices mediate the relationship between TMT attributes and company performance. Design/Methodology/Approach: Conducting a nationwide study involving 150 Polish companies, the research collected data through surveys with 150 HR managers and 150 top managers. Statistical methods, including descriptive statistics, correlations, and regression analysis, were employed in the analytical framework to explore the hypothesized relationships. Findings: The study uncovers a positive correlation between TMT attributes and company performance. It identifies TMT emphasis on SHRM and curatorship of HR as pivotal mediators, showing that larger, diverse TMTs are inclined to prioritize gaining a competitive advantage through human resources, and address vulnerability challenges, positively impacting overall company performance. Research Limitations/Implications: Acknowledging limitations in the oversight of organizational processes, particularly translating top managers’ choices into company performance, the article highlights the need for further validation of the curatorship of HR measurement tools, and suggests incorporating objective financial data for comprehensive performance assessments in future research. Originality and Value: The study contributes valuable insights into the complex dynamics impacting company performance, examining key TMT attributes, and introducing the concept of “curatorship of human resources”. The novel perspective, alongside TMT emphasis on SHRM, proves pivotal in positively influencing overall performance, filling a significant gap in HRM literature.

Association between pre-diagnosis financial strain and later stage cancer presentation.

127 Background: Poverty and community-level deprivation have been shown to be associated with later stage cancer diagnosis. However, few studies have used objective financial data to study the link between individual financial strain and cancer stage at diagnosis. Our goal was to assess the associations between pre-diagnosis financial strain (FS) as measured by credit reports and later stage cancer diagnosis. Methods: Records from cancer patients diagnosed with solid tumors between 2014 and 2018 from the Western Washington SEER cancer registry and quarterly credit report data from a large credit-reporting agency TransUnion were linked and deidentified. Patients diagnosed with late-stage cancer (stages III and IV) were matched 1:1 to patients diagnosed with early-stage cancer (stages I and II) by age, year of diagnosis, cancer type, and insurance status. We assessed the association between FS (defined as any records of third-party collections, charge-offs, delinquent mortgage payments, tax liens, foreclosures, repossessions, and bankruptcies within 2 years prior to diagnosis) and late-stage diagnosis using conditional logistic regression to account for matching, adjusting for race, sex, marital status, area deprivation, and rurality. We performed stratified analyses by insurance enrollment. Separately, among a subset of unmatched insured breast cancer patients eligible for cancer screening (ages 50-74), we used multivariable logistic regressions to exam how the nonreceipt of screening mammography within 2 years of diagnosis mediated the relationship between FS and late-stage diagnosis. Results: After matching, 27916 patients were included in the analysis (mean age 66, 47% female, 84% White race, 7% Asian or Pacific Islander, 4% Black, and 3% Hispanic). Almost one in three patients (32%) had experienced FS before diagnosis. FS was associated with higher odds of late-stage cancer diagnosis (adjusted OR, aOR 1.18, 95%CI 1.1-1.3), and this association remained significant among insured patients (aOR 1.13, 95%CI 1.03-1.2). Among a subset of insured breast cancer patients (n=6934), FS was associated with nonreceipt of mammography (aOR 1.88, 95%CI 1.5-2.4). The association between FS and late-stage diagnosis became insignificant after we accounted for nonreceipt of mammography (aOR reduced from 1.65 (95%CI 1.4-1.9) to 1.04 (95%CI 0.8-1.4)). Conclusions: FS is associated with a later stage cancer diagnosis, which could in turn lead to adverse cancer outcomes. Among breast cancer patients, this association can be largely explained by nonreceipt of mammography. Our findings suggest that even with insurance coverage, individual’s financial stress may create an additional barrier to timely medical attention for suspicious cancer symptoms or routine screening, further exacerbating cancer disparities. This research highlights the need to develop strategies to improve access to care for these individuals.

Financial technologies (FinTech) for mental health: The potential of objective financial data to better understand the relationships between financial behavior and mental health

Financial stability is a key challenge for individuals with mental illnesses. Symptomatic periods often manifest in poor financial decision-making including compulsive spending and risky behaviors. This article explores research opportunities and challenges in developing financial technologies (FinTech) to support individuals with mental health. Specifically, we focus on how objective financial data might lead to novel mental health assessment and intervention methods. We have used data from one individual with bipolar disorder (BD) (i.e., an N = 1 case study) to illustrate feasibility of collecting and analyzing objective financial data alongside mental health factors. While we have not found statistically significant trends nor our findings are generalizable beyond this case, our approach provides an insight into the potential of using objective financial data to identify early warning signs and thereby, enable preemptive care for individuals with serious mental illnesses. We have also identified challenges of accessing objective financial data. The paper outlines what data is currently available, what can be done with it, and what factors to consider when working with financial data. We have also explored future directions for developing interventions to support financial well-being and stability. Furthermore, we have described the technical, ethical, and equity challenges for financial data-driven assessments and intervention methods, as well as provided a broad research agenda to address these challenges.

The Business of Employed Plastic Surgery: Creating Your Seat at the Table.

While the landscape of medicine changes, hospital employment continues to gain popularity in surgical specialties. The number of plastic surgeons entering an employed relationship has also grown, offering new opportunities and challenges alike. The authors studied the profitability of plastic surgery to the hospital and the necessity of the specialty to hospital administration through financial net revenue, contribution margin, and payer mix, to help plastic surgeons realize and capitalize on their importance and contribution to the hospital system. Facility net revenue and contribution margin from Houston Methodist West Hospital were evaluated. Average net revenue and contribution margin for inpatient and outpatient cases for plastic surgery, orthopedic surgery, and all combined surgical specialties were studied for the 2018 and 2019 fiscal years. The authors demonstrated net increase per year for both outpatient and inpatient revenue in favor of plastic surgery versus orthopedics and combined surgical specialties. Plastic surgery contributed higher facility net revenue when compared to orthopedics, contributing 20 percent more per outpatient case and 86 percent more per inpatient case. A higher contribution margin for each year was realized for inpatient cases versus orthopedics and combined surgical specialties, increasing by 8 percent and 53 percent and 61 percent and 86 percent, respectively. A surgeon's ability to present objective financial data and develop leadership roles within the hospital system can lead to a favorable outcome for both physician and hospital. An objective dialogue with hospital administration is critical and offers an avenue to negotiate the development of your practice.

Cancer diagnosis and adverse financial events: Evidence from credit reports.

6504 Background: Increasing evidence shows that cancer patients (pts) experience financial hardships after diagnosis. Few studies, however, have used objective financial data to estimate the relative risk of adverse financial events (AFEs) in cancer pts versus individuals without cancer. Using a retrospective case-control design, we investigated whether cancer pts are at increased risk of new AFEs, as measured by their credit reports. Methods: Western Washington Surveillance Epidemiology and End Results (SEER) cancer registry (cases) and voter registry (controls) records from 2013 to 2018 were linked to quarterly credit records from TransUnion (2012-2020), one of the 3 largest national credit agencies. Controls were age and sex matched to cases and assigned an index date corresponding to the diagnosis (dx) date of the matched case. Individuals with evidence of any AFE in the credit report closest to index/dx date or did not survive to 24 months were excluded. Cases and controls experiencing any of the following AFEs within 24 months were compared, using two-sample z tests: severe (3rd party collections, charge-offs), more severe (tax liens, delinquent mortgage payments), and most severe (foreclosures, repossessions). Multivariate logistic regression models were used to evaluate the association between cancer dx and AFE, adjusting for age, sex, dx year, and available credit 6 months before the index/dx date. Results: A total of 332,825 individuals (84,185 cases and 248,640 controls, mean age 66 (SD 13), 52.7% female) were included. The mean available line of credit in the year before index/dx date was $12,303. AFEs were more common in cases versus controls (Table). After adjusting for age, sex, available credit above or below $12,303, and dx year, cancer dx was significantly associated with any AFE (OR 1.77, 95% CI 1.7-1.85, p<0.0001), severe AFEs (OR 1.94, 95% CI 1.85-2.03, p<0.0001), more severe AFEs (OR 1.23, 95% CI 1.12-1.36, p<0.0001), and most severe AFEs (OR 1.46, 95% CI 1.16-1.86, p=0.0016). Age >65 and higher available baseline credit were associated with decreased risk of any and each category of AFE. Conclusions: Within 24 months from dx, significantly higher proportions of cancer pts experienced AFEs relative to controls. Such events on credit reports have serious and long-lasting consequences on financial status. Studies that link clinical and financial data to investigate the impacts of these events on treatment decisions, quality of life, and clinical outcomes are needed.[Table: see text]

Revisiting Covin and Slevin (1989): Replication and extension of the relationship between entrepreneurial orientation and firm performance

We replicate and extend the seminal paper of Covin and Slevin (1989) on entrepreneurial orientation (EO) by conducting two studies. Specifically, we examine the impact of a firm’s EO on financial performance under hostile environments using various measurements. Study 1 is a direct replication of Covin and Slevin (1989) in which we utilize data collected from firms in the USA, which adopted the same survey measures of Covin and Slevin (1989). Study 2 is a generalization and extension of Covin and Slevin (1989) in which we implement newly developed objective EO measurement by Miller and Le Breton-Miller (2011) and utilize objective financial data of Chinese public firms. The results of both studies provide evidence that a firm’s EO positively impacts firm performance, especially in hostile environments. Further theoretical implications and contributions based on diverse types of replication studies are discussed.

Dimensions of organisational innovativeness and company financial performance in the biotechnology sector

PurposeThe relationship between organisational innovativeness (OI) and company performance has been studied extensively, and the associations found have mostly been positive. However, as OI is a multidimensional concept, more nuanced research is needed to identify which dimensions of innovativeness companies should focus on. The purpose of this paper is to longitudinally investigate the links between dimensions of OI and company financial performance, based on a sample of Finnish and Estonian pharmaceutical biotechnology companies.Design/methodology/approachInterviews inquiring about OI were conducted in 26 biotechnology companies and then their performance was measured over three subsequent years using objective financial data. Due to limited sample size, qualitative comparative analysis is employed in addition to non-parametric statistical tests.FindingsOverall, OI did not decisively influence financial performance in the studied sector. There were, however, dimensions related to human resource policies that appeared to have more potential to positively impact financial performance, whereas the strategic dimension was actually aversive to certain performance indicators.Research limitations/implicationsThe study limitations are a small sample, possible managerial bias in the assessment of OI, and focus on financial measures only.Practical implicationsThe study demonstrates that OI is a multidimensional construct and not all dimensions play an equal role in financial performance. Innovation-supportive human resource policies and strategic flexibility contributes to financial performance in the pharmaceutical biotechnology sector.Originality/valueThe contribution of the study is the analysis of a specific sector with a longitudinal approach by bridging quantitative and qualitative approach.

Fostering performance through leaders’ behavioral competencies

PurposeThis paper aims to identify which top leaders’ behavioral emotional intelligence (EI)-competencies affect firm performance when considering the overall organization orientation toward efficiency, human resources and adaptability to the external environment as an interface (i.e. a filter) between the individual leader and firm outcomes.Design/methodology/approachThe research was conducted on a sample of Italian top leaders. The authors used a cross-level analysis that distinguishes individual characteristics, mid-level performance determinants and organizational results. The authors used a variety of methods of assessment: behavioral event interviews for top leaders’ EI-competencies; subject matter experts’ evaluations for organizational orientation; a non-parametric statistical analysis for distinctive competencies; objective financial data for firm financial performance. To identify which competencies impact on financial performance, factor and regression analysis was used.FindingsIn firms oriented toward efficiency, human resources and adaptability to the external environment, top leaders’ people management EI-competencies are the most frequent distinctive abilities. These distinctive competencies can be further distinguished into task, relationship and change-oriented behaviors, although only the first two appear to be related to firm performance.Practical implicationsTo foster firm performance, top leaders should leverage certain EI-related competencies, especially those that are task and relationship oriented. Leaders should not only see the organization as an extension of themselves but also be aware that the organization might obstacle their individual impact.Originality/valueThis original empirical study uses different data sources and methodologies, it assesses a multi-level model and is conducted in Italy. No previous empirical study has considered the organization as a filter – and not an enhancer – between the top leader and firm performance.

Heading for new shores: Do service and hybrid innovations outperform product innovations in industrial companies?

This study investigates the financial outcomes of product, service, and hybrid innovations in industrial markets. To date, empirical research has focused on product innovations, yet industrial firms are increasingly competing with innovative services to maintain their competitive edge. This study assesses the financial impact of service and hybrid innovations compared with more traditional product innovations. We develop a unique data set that combines information on companies' innovation activities with objective financial data. From a sample of 348 German industrial firms, the analysis reveals that service innovations do not outperform product innovations in industrial markets. A focus on service innovations only pays off in highly price-conscious markets. In contrast, hybrid innovations, referring to the simultaneous market introduction of new products and services, have a positive effect on firm performance above and beyond pure product innovations. This effect is particularly pronounced in competitive markets and under conditions of high customer concentration. In sum, this study demonstrates that hybrid innovations outperform both, pure product and service innovations in industrial markets.

СТОИМОСТНОЙ ПОДХОД К ОЦЕНКЕ ЭФФЕКТИВНОСТИ ТРУДА МЕНЕДЖЕРОВ

The problem of evaluation of the effectiveness and quality of work of managers arises from the fact that the owners community of the Russian business starts to feel ready for the transfer of management functions to employees. These trends are complicated by many reasons, among of which we should highlight the lack of objective methods of evaluation of managers’ work effectiveness. At the same time, there are rather reliable methods of evaluation in foreign practice, based on the objective financial data. In this regard, there is a need to adapt the tools and methods to the activities of Russian enterprises developed by foreign scientists and used by practices. And as is the customary in modern management, the main purpose of management of the company is the increase of its value and, as a result, the shareholders' welfare, calculation of the cost is becoming one of the main tools for the evaluation of the quality and efficiency of the managers’ work. In this paper, the technique of using one of the methods is given, which is based on the determination of the intrinsic cost of the business with the purpose of business management and control over the activity of managers

The effect of customer information during new product development on profits from goods and services

Purpose – This study aims to investigate how customer information obtained at different phases of a new product development (NPD) process influences profits from new offerings. Design/methodology/approach – A survey was conducted in the context of NPD in goods and services. A unique database was constructed that merged key informant survey responses with financial data for 244 firms. This database was used to replicate and extend previous research by posing a number of hypotheses regarding the role of obtaining customer information in NPD. Findings – The results show that obtaining customer information during NPD influences the profits from new offerings, which vary depending on the phase of the NPD process. The financial rewards from obtaining customer information for goods are highest in the early phases of the NPD process and decline in later phases. The financial rewards for services, on the other hand, are high in the early and late phases of the NPD process. Research limitations/implications – The research is based on a survey combined with objective financial data, that is, a combination of different data sources. The research would have benefitted from longer data series and a higher response rate. Originality/value – This study replicates and extends previous research by testing the role of obtaining customer information in both manufacturing and service firms by combining survey data with objective financial data.

The Influence of Capital Structure on Strategic Human Capital

Strategic human capital research has emphasized the importance of human capital as a resource for sustained competitive advantage, but firm investments in this intangible asset vary considerably. This article examines whether and how external pressures on firms from capital markets influence their human capital strategy. These pressures have increased over the past three decades due to banking deregulation, technological innovation, and the rise of institutional investors and new financial intermediaries. Against this backdrop, this study examines whether a firm’s capital structure as measured by share turnover, shareholder concentration, and financial leverage is associated with firm investment in strategic human capital. Based on survey and objective financial data from 221 establishments in the United States and Canada, our analysis indicates that firms with greater share turnover, higher shareholder concentration, and higher levels of financial leverage are less likely to invest in human resource systems that create strategic human capital. Differences in national financial systems also lead to differential effects for U.S. and Canadian firms.

The impact of contextual factors on the efficacy of ISO 9000 adoption

This study investigates the importance of contextual factors on the efficacy of ISO 9000 adoption. We explore the role of various contextual factors at the firm-level (i.e., technology intensity, labor productivity, and labor intensity) and industry-level (i.e., industry efficiency level, industry competitiveness, industry sales growth, and industry ISO 9000 adoption level) that potentially impact the efficacy of ISO 9000 adoption. We carry out a hierarchical linear modeling (HLM) analysis based on objective financial data from 438 U.S. manufacturing firms. The results show that firms with low technology intensity, low labor productivity and high labor intensity reap more benefit from ISO 9000 adoption. Firms in industries with low efficiency levels, high competition, high sales growth and low ISO 9000 adoption levels also obtain more benefit from the adoption. Our research provides supporting evidence for the context-dependent proposition of ISO 9000 adoption. Given the significant costs and resources involved, it is crucial for operations managers to assess to what extent ISO 9000 might benefit their performance before embarking on the implementation process.

Lean Transformation: Organizational Performance Factors that Influence Firms’ Leanness

The purpose of this research study was to examine relationships between organizational performance and change (OP&C) factors perceived leanness, and objective performance measures within a medium-sized manufacturing organization engaged in lean transformation. Burke (2008) suggested that successful transformational change is often predicated upon an organization's ability to understand dimensions influencing change interventions as outlined in the Burke-Litwin model of OP&C. To better understand why lean interventions succeed in some instances and not in others, it is important to study relationships between OP&C dimensions and their impact on the leanness an organization achieves. While a number of statistically significant findings were found with small effect sizes among the dependent and attribute variables, some statistically significant findings with much larger than typical effect sizes between the dependent variable and the objective financial data were discovered. However, the reliability and val...

Achieving Service-Sales Ambidexterity

Frontline employees in traditional customer service units are under increasing pressure to pursue the twin goals of providing quality service while achieving productivity gains by meeting increased sales targets—that is, being service-sales ambidextrous. Drawing from literature on organizational ambidexterity, this study explores forces that facilitate the conversion from a service-only environment to one that emphasizes both sales and service behavior. With a sample of more than 2,306 frontline employees in 267 bank branches, this study examines the impact of contextual variables on service-sales ambidexterity from a multilevel perspective. It then explores the consequences by analyzing objective financial data at the retail branch level, which reveal a significant relationship between ambidexterity and financial performance. Empowerment and transformational leadership are positively associated with service-sales ambidexterity at individual and branch levels; team support is associated with ambidexterity only at the individual employee level. Managers thus should let service workers exercise their own judgment when deciding when or what to up- or cross-sell. The delegation of authority works best for branch office veterans whose service excellence and selling both are recognized and rewarded.

First to market: Is technological innovation in new product development profitable in health care industries?

Do innovative products incorporated advanced technologies help firms improve operating performance? In this study we traced the operating performance of 168 publicly traded manufacturing firms in the USA that announced technologically innovative products in two major industries from the health care domain, namely pharmaceuticals and medical instruments. We employed the event-study methodology and collected objective financial data from Compustat. We found that technologically innovative products have a statistically significant positive effect on operating performance. The median abnormal increase in return-on-assets ranged from 2.20% to 7.07% over a four-year period. The median abnormal increase in return-on-sales ranged from 4.16% to 4.70% and the median abnormal increase in sales-over-assets ranged from 5.85% to 7.38%.

How much does performance matter in strategic decision making?

PurposeThe purpose of this paper is to explore the influence of two aspects of firm performance: financial and business performance and organizational effectiveness, on three dimensions of the strategic decision‐making process, rationality, intuition, and political behavior.Design/methodology/approachThe empirical study goes well beyond the common anecdotal observations or reflections on strategic decision‐making by utilizing a mixed‐methods approach. Based on a multi‐method field study, 286 Egyptian managers who participate in making strategic decisions are surveyed; and 36 semi‐structured interviews are conducted.FindingsThe results suggest that strategic decision‐making in high‐performing firms is more rational and less intuitive and political. Interestingly, they also show that organizational effectiveness is a stronger predictor of strategic decision‐making process dimensions than of financial and business performance.Research limitations/implicationsIn Egypt, a widespread suspicion of academic research adds to the frequent difficulty of obtaining completed questionnaires from more than one senior manager in a company. Moreover, because of the difficulty of collecting objective financial data, subjective measures are used to gauge performance. Further research should test the generalizability of our results in narrowly defined samples, e.g. the banking industry or the automotive industry.Practical implicationsThe results highlight the importance of performance in strategic decision making and seem to support the “culture free” argument advancing the position that cultural differences may not have a significant impact on the influence of performance on the strategic decision‐making process.Originality/valueAlthough scholars have posited organizational performance as an important contextual variable influencing the process of strategic decision making, this influence is not well understood or articulated, especially in the Egyptian setting. This paper contributes to filling this gap.

The relationship between marketing strategies and performance in an economic crisis

PurposeTo examine how companies are affected by economic crises, to assess the effects of marketing strategies on company performance in such conditions, and to identify those that can help companies to maintain successful performance despite turbulence in the operational environment.Design/methodology/approachA structured questionnaire contained questions relating to 21 marketing strategies, associated with the elements of the marketing mix, plus a “general marketing strategies” category. It was completed by 172 Turkish companies, drawn from a national frame of 1,000. Data were analysed by factor analysis, with performance criteria set as the dependent variable. Results are reported for each of the elements of the marketing mix.FindingsCompanies that modify their strategies appropriately can maintain or improve their performance in times of crisis. Conclusions and recommendations identify the strategic changes most likely to achieve that outcome, measured mainly in terms of sales, market share and profitability.Research limitations/implicationsSubjective measures of performance were used because of practical obstacles to obtaining objective financial data from the sample, which would have severely reduced the response rate. Future studies should include such data in the analysis. They might also cross‐index findings by company size, industry sector and market scope, and take account of company resources and skills.Practical implicationsThe findings provide valuable insights for decision makers and marketing planners in times of economic crisis, specifically in the Turkish context but potentially in general.Originality/valueAdds a specific focus on marketing strategies to existing studies of general measures taken by companies during economic crises.