Public Limited Companies Research Articles

Financial performance of renewable energy producers: A panel data analysis from the Baltic Sea Region

Fighting greenhouse gas emission requires actions to reduce energy usage and increase the proportion of renewable energy sources in the total energy production. Managing this energy transformation process requires significant financial outlays, so financial performance is crucial; it enables energy producers to make future energy transformation decisions. The study discussed in this paper evaluated the financial performance of renewable energy producers in comparison to conventional energy producers in the Baltic Sea Region. The research also aimed to determine how the financial performance is influenced by firm-specific and country-specific factors. We analyzed a unique panel dataset of 328 energy producers, most of which were private limited companies, in the period ranging from 2011 to 2019. Using random effects and fixed effects models, we found that private limited companies had a better financial performance than public limited companies. The size of the company’s assets had an ambiguous effect on its financial performance. Moreover, the difference in the performance of various type of energy producers was small. However, since the Paris Agreement, the impact of electricity prices on both ROA and ROE of the producers has been increasing.

Modernizing Royals and Capitalists of Kumase

Abstract British imperialism bequeathed sports to former colonies. In the immediate postwar period, colonial bureaucrats intensified the modernization agenda in many of their colonial territories. The institution of horse racing was associated with the upper echelons of society in many colonies. In colonial Asante, the royals and capitalists of Kumase established the Ashanti Turf Club as the first public limited liability company in the history of horse racing in Ghana. Horse racing in Kumase started with the active encouragement and patronage of the king of Asante (Asantehene). The Kumase royals and capitalists embraced the middle-class culture and bought shares in the Turf Club. The practice of betting linked the working-class to racing. Horse racing played a significant social role in Asante society by keeping residents entertained at the weekends. This article examines the Ashanti Turf Club Limited within the context of the modernization of postwar Asante. It shows how the history of horse racing in Kumase provides a lens to understand how Africans embraced middle-class culture and colonial modernity.

Management strategy, innovative leadership, and dynamic capabilities affect success of public companies in Thailand

Public limited companies in Thailand operate under the support of the government with the aim of continuously developing potential for long-term economic expansion. During the COVID-19 pandemic, the public limited companies face many problems including lack of competitiveness at the national and global levels. The objectives of this research were to: 1) study levels of management strategies, innovative leadership, dynamic capabilities, and success in the operation of the public limited companies in Thailand; 2) examine influences of management strategies, innovative leadership, and dynamic capabilities on the success in the operation of the public limited companies in Thailand; and 3) develop a model for the success in the operation of the public limited companies in Thailand. This research employed a mixed research methodology combining quantitative and qualitative methods. For the quantitative research part, the research sample consisted of 360 executives of public limited companies in Thailand. The sample size was determined based on the criterion of 20 times the observed variables. They were selected via stratified sampling. Data were collected with the use of a questionnaire and analyzed with a structural equation model.

Management strategy, innovative leadership, and dynamic capabilities affect success of public companies in Thailand

Public limited companies in Thailand operate under the support of the government with the aim of continuously developing potential for long-term economic expansion. During the COVID-19 pandemic, the public limited companies face many problems including lack of competitiveness at the national and global levels. The objectives of this research were to: 1) study levels of management strategies, innovative leadership, dynamic capabilities, and success in the operation of the public limited companies in Thailand; 2) examine influences of management strategies, innovative leadership, and dynamic capabilities on the success in the operation of the public limited companies in Thailand; and 3) develop a model for the success in the operation of the public limited companies in Thailand. This research employed a mixed research methodology combining quantitative and qualitative methods. For the quantitative research part, the research sample consisted of 360 executives of public limited companies in Thailand. The sample size was determined based on the criterion of 20 times the observed variables. They were selected via stratified sampling. Data were collected with the use of a questionnaire and analyzed with a structural equation model.

The value-relevance of social media activity of Finnish listed companies

PurposeThe use of social media tools by companies is common, but the links between the use of multiple social media tools by companies and stock price changes are largely unknown. Therefore, this study aims to analyze the value-relevance of social media activities on Facebook (FB), Instagram (IG), LinkedIn (LI), Twitter (TW) and YouTube (YT).Design/methodology/approachStock market data and hand-picked social media data in this study were collected from Finland, a small language area with consistent International Financial Reporting Standards (IFRS) reporting practices, in the expectation of better comparability and lower noise in the data.This study uses correlation, regression and factor analyses for a sample of 105 Finnish public limited companies listed on the Nasdaq Helsinki stock exchange.FindingsThis paper finds evidence that social media activity is an important area of analysis and that the activity and popularity of a company in social media are value-relevant variables in forecasting stock prices.Practical implicationsNot all social media activities are necessarily equally important for managers and investors. Focus on visual messages in social media is recommended.Originality/valueThe findings of this study highlight the value-relevance of using multiple visual social media channels, particularly IG and YT. This paper suggests avenues for future research and for analyzing social media information.

DARBUOTOJŲ FINANSINIO DALYVAVIMO LIETUVOJE RAIDA IR FORMOS: ĮMONIŲ AKCIJŲ IR PELNO PASIDALIJIMO PROGRAMOS BEI PRIEMONĖS

The article analyses the development of employee financial participation in Lithuania, describes the legal environment of financial participation, and supports this participation. Two methods were used to analyse employee financial participation: 1) the method of logical analysis in examining the internal documents of companies; 2) the qualitative research methods of focus group and semi-structured individual interviews. Theories of the agency and stakeholders were used to analyse the data collected. These theories are usually applied in research in an integrated way, analysing employee financial participation to elucidate the phenomenon of employee ownership, and examining the agent’s performance. It has been established that in Lithuania four employee share ownership programmes and plans usually apply: extensive employee share option programmes (granted to public limited companies whose shares are traded on stock exchanges); granting employee stock options to executives (so-called executive stock option programmes and one-time decisions); stock option programmes in start-ups; and shares granted by shareholders to employees.

THE ROLE OF KNOWLEDGE MANAGEMENT IN THE DEVELOPMENT OF MARKETING MANAGEMENT

The purpose of this study is to determine the relationship between knowledge management and an organization's marketing perspective and the growth of competitiveness in the service sector (Hotel) in 83 hotels in three Baghdad security districts, Iraq. The type of research is non-experimental, observational, cross-sectional, retrospective and descriptive. The Design is TransactionalCorrelational. Regarding Knowledge Management, 63.9% considered the perception level of the hotel company manager as high, followed by very high with 25.3% and 10.8% as low. Regarding Internal Marketing, 63.9% considered the perception level of the hotel company manager as high, followed by very high with 25.3% and 10.8% as low. Regarding Competitive Advantages, 68.7% considered the perception level of the hotel company manager as high, followed by very high with 22.9% and 8.4% as low. Of the 83 samples, 45% are public limited companies or sole proprietorships, followed by 11% from hotel companies with limited liability. At a 95% confidence level, knowledge management and internal marketing orientation are significantly related to developing competitive advantages in the hotel sector of three Baghdad security districts. The value of Sig. is 0.000

Capital structure of Iberian football clubs: does sport performance matter

The main objective of this paper is to study the capital structure determinants of the major Spanish and Portuguese football clubs, in particular the impact of their sport performance on leverage. Football clubs were chosen because of their public relevance and also because the sector's capital structure has hardly been studied, in particular in the Iberian Peninsula. The obtained results could be useful to football clubs' managers, particularly in regard to their capital structure management. Using panel data methodology and considering a sample of 32 football clubs organised as public limited sports companies, we study the capital structure determinants between 2010 and 2015, adding a set of sport performance variables. The results suggest that size, total liquidity and asset intangibility are key factors affecting the capital structure and that pecking order theory seems more suited to those companies, whereas sport performance variables are irrelevant.

The Option of Participating on Meetings through Video Conferencing and Other Audiovisual Means: Is it Fit for the Purpose?

The OHADA Uniform Act on Commercial Companies has since 2014 made amendments relating to the good governance of public limited companies. These amendments are aimed at improving the functioning of the board of directors, bolster shareholders rights and transparency. To improve transparency and traceability of the board of directors activities, the OHADA legislator has introduced the option for directors and shareholders to participate in board meetings and general meetings through videoconferencing or any telecommunication technology. The OHADA Legislator has been applauded for this innovation especially given the fact that shareholders and directors now have the opportunity to participate in the activities of the company meetings whenever they are met with unforeseen circumstances such as the covid 19 pandemic that made governments to restrict movements and gatherings. Our analyses of this provision of the Uniform Act on Commercial Companies, allowing directors and shareholders to attend meetings through videoconferencing and other telecommunication technologies is fit for the purpose of improving the functioning of the board of directors. However, this innovation has some drawbacks that have curtailed it effectiveness. This does not only stem from the fact that the OHADA Legislator makes it optional for companies but also by the fact that there are frequent power failures and high internet cost in Africa as well as sudden technical faults and distracted attendees.

External Audit Quality and Value Creation: What Relationship in the Cameroonian Context

A financial statement audit is an essential tool for reducing information asymmetry and maintaining an efficient market environment. However, if the audit strives to improve financial performance, there must be credibility and reliability. This research verifies the link between external audit quality and value creation while controlling for other exogenous factors (the size and age of the firm). Given that most research on this relationship has been carried in the context of developed countries and much more on listed companies, this study adopts a new approach to investigate the contribution of external audit in improving the value creation by unlisted companies like Cameroon. The audit quality was captured by the competence and the independence of the auditor. The creation of value is measured by the evolution of turnover and net income. Using the logistic regression analysis on data collected on a sample of 97 public limited companies in Cameroon, it is proved that audit quality has a positive and significant influence on value creation. Belonging to the Big Four, providing services other than external audit and the evolution of audit fees have no significant impact on value creation. As control variables, the company’s size does not explain value creation, but the firm’s age does. It is recommended that the management hire a competent auditor who respects the steps of the audit process to create more value. Due to the importance of having a high-quality audit, further studies should explore other external audit quality variables such as co-auditing, adherence to the audit timetable, and the time allowed for audit assignments.

Правовой статус и особенности государственных корпораций в современной России

The article is devoted to the study of the theory, problems, advantages anddisadvantagesofstatecorporations. Achieving this goal has defined the need to complete the following tasks: clarificationofthestatecorporation definition, its objectives and legal basis; identification of the distinctive features fromothermechanisms of government regulation of the economy; analysis of Russian experience in state corporationfunctioning;identifying of the state corporation advantages and disadvantages in the market economy. The authorscriticisethestate’s poor control, management quality and the red tape in the state corporations, so they believereplacingthemwith public limited companies where 100% of participation share belongs to the state to be reasonable.

Financial performance of the textile industry in India: the case of Haryana

PurposeThis study aims to evaluate the financial performance of the textile industry in Haryana located in the northern part of India.Design/methodology/approachInput-oriented Cooper, Charnes and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) techniques of data envelopment analysis, as well as the return to scale (RTS) technique, were used to conduct the analysis.FindingsThe findings show that textile units in Haryana have hugely underperformed financially with a consolidated technical efficiency score of only 0.35. Both private and public limited textile companies with respective scores of 0.46 and 0.24 are technically efficient. Public limited textile companies are more efficient than private limited companies. Private limited textile companies need to increase their input scale because they are operating at an increasing return to scale while public limited textile companies have to lower their input scale because most companies are operating at a decreasing return to scale to enhance their efficiency.Originality/valueThe study can assist in decision-making to all key stakeholders (Shareholders, management, government, tax authorities, debtors and creditors, among others) by identifying efficient and inefficient companies. Appropriate policies can be framed based on that knowledge.

Minority Shareholders’ Legal Protection in a Limited Liability Company System

The purpose of this study is to determine the legal protection model for the majority and minority shareholders in public limited companies. This research method is normative research. To investigate the ineffectiveness of laws and regulations, in particular, Law No. 40 of 2007 on limited liability companies in providing shareholder protection, researchers have studied the laws and regulations and considered the views of experts on legal concepts related to legal protection for shareholders, particularly, minority shareholders. The results showed that the law did not provide maximum legal protection for minority shareholders, creating an imbalance between the rights of the minority and majority shareholders. For this reason, 1) reform or progressive changes in laws and regulations are needed, for instance, in PT Law No. 40 of 2007. These changes should be fundamental to philosophical aspects (values and perspectives) in providing shareholder protection; 2) the review of shareholders’ protection methods should be based on the aspects of fairness

Customer Retention Strategies and Performance of Commercial Banks in Rwanda: A Case Study of Equity Bank Rwanda Public Limited Company (PLC)

The main objective of research was to examine the influence of consumer retention strategies on the performance of Commercial Banks in Rwanda; taking Equity Bank Rwanda PLC as the case study. More specifically the study sought to; examine how consumer retention strategies affect the performance of Equity Bank Rwanda PLC; to determine the performance level of Equity Bank Rwanda PLC; and to establish the relationship between consumer retention strategies and the performance of Equity Bank Rwanda PLC. The study adopted three theories; relationship commitment model, customer bonding theory and disconfirmation of customer satisfaction. The study used descriptive case study research design. The study’s target population was 134 staff members. Slovin’s formula was used to calculate the sample size n=100. Purposive technique of sampling was used dependent on the analyst's judgment that the selected sample matched the study’s objectives. The researcher collected primary data from the respondents using survey questionnaires. Secondary data was sourced from open access libraries and peer reviewed journals relevant to the study. Questionnaires that were accurately completed were assigned with codes and entered into the SPSS computer software for analysis. Data was presented using frequencies, rates, and means, standard deviations, and exhibited as tables. Person correlations and regression examinations were utilized to decide and clarify the connection between study variables. Respondents strongly agreed that products and services presented by the bank meet the needs of the customers (mean 4.54); agreed that; services given by the bank coordinate the requirements of the customers (mean 4.42); accuracy was assured in all bank transactions (mean 4.24); bank officials made follow-ups to ensure that complaints were handled effectively and consumers were satisfied (mean 4.25); and customer complaints were handled immediately (mean 4.08). Respondents strongly agreed that the bank has memorable advertisements that capture significant data with respect to their products and services (mean 4.59); agreed that the bank offered novel and particular items (mean 4.46); the bank used latest technology that had diversified its ability to offer services to customers (mean 4.17); and the adoption of Mobile banking and the frequency of transactions using Money Transfer technologies ‘EazzyPay” had increased the bank’s profitability (mean 4.13). A regression analysis was conducted to determine the influence of consumer retention strategies on bank performance when the dependent variables were regressed against the independent variables. The findings suggested a 65.3% variance of customer retention rates, 75.5% variance of customer growth, and 53.5% variance of Banking operational costs as accounted for by the model, in this case, consumer perceived pricing, service quality delivery, and product diversification. ANOVA results suggested consumer retention rates (p=.006), customer growth (p = .024), Banking operational costs (.003) indicating that the models were significant in predicting the influence of consumer retention strategies on bank performance given that the p values were <0.05 or < 0.01. Conclusions made by the study suggested that Equity bank had adopted customer retention strategies that contribute towards improving its market share. Service quality consumer retention strategies adopted by the bank had contributed towards increment in the quantity of consumers seeking products and services. Product diversity retention strategies had led to high satisfaction rates among consumers. The study recommended that banks should strengthen consumer analysis in order to ensure that it foresees changing needs for more quality products and services.

Capital Structure and Firm Performance: How Does Marketing Expense Interact?

Focus of the study is to examine the role of marketing expense in the relation between capital structure and firm performance using 35 public limited companies listed in Colombo Stock Exchange (CSE), Sri Lanka for the period 2012 to 2019. Inconclusive evidence reported on the role of marketing expense along with unavailability of sound literature raise the need of a study in this nature. The study employs total debt to total asset ratio to represent the leverage of a company while return on assets as proxy for firm performance. Further, return on equity has been introduced to test the robustness of each model developed within the study. Followed by a general descriptive analysis, panel data regression models have been designed to observe the mediator or moderator role of marketing expenditure in determining the relationship between the main variables of the study. Moreover, the study has taken a fair attempt to eliminate model specification bias by incorporating control variables to the main regression models. As per the regression model outputs it was observed that marketing expense operates as a moderator variable in Sri Lanka and most importantly it is weakening the adverse impact created by excessive debt level on firm performance. These findings appeal for a developed capital market in Sri Lanka and highlight the radical decision making under resource-based view. The results of the study agree with the related literature in other parts of the world.

Impact of audit committee characteristics and external audit quality on firm performance: evidence from India

PurposeThe purpose of this paper is to analyse the influence of audit committee characteristics and external audit quality on the performance of non-financial public limited companies listed on the National Stock Exchange 100.Design/methodology/approachOne-way random effect panel data regression was applied to 74 non-financial firms in the Nifty 100 from 2014 until 2019. The overall audit committee index and external audit index were built based on the new Indian Companies Act, 2013 and on a review of the literature to capture the impact of the new Act on firm financial performance.FindingsThe outcome of the study revealed that there is lack of evidence to show that audit committee characteristics improve the performance of top Indian non-financial listed firms. However, external audit quality was found to have a significant positive impact on the financial performance of firms as measured by Tobin’s Q, while firm size and leverage were found to have a significant impact on the financial performance of firms as measured by return on assets and return on equity.Practical implicationsThis paper will be greatly beneficial for financial practitioners and policymakers because it provides practical suggestions and recommendations about the types of external audit that are indispensable for the overall effectiveness and performance of firms. The study findings may also aid strategic policy formulation and execution for better corporate governance practices for the purpose of profit and wealth maximisation.Originality/valueTo the best of the authors’ knowledge, to date, no previous research has evaluated the effects of audit committee features and external audit quality on the financial performance of firms in India after the implementation of the new Companies Act, 2013. Hence, this study fills this void in the present literature by examining the overall features of the audit committee and external audit and their impact on firm performance in the setting of India.

Freedom to Define Membership in a Mutual Insurance Company

A mutual insurance society is one of the basic forms of conducting insurance activity. It is characterized by a very wide range of options which its founders and subsequently entitled members have in order to choose the organizational and systemic model of operation, to change it in the course of business, to define the concept of membership, to create various categories of members and provide them with different rights and duties, to determine the powers of statutory bodies, and, above all, to apply the method of mutuality. The Insurance and Reinsurance Activity Act regulates the basic legal framework of mutual companies, while referring quite a number of issues to the Polish Commercial Partnerships and Companies Code. This does not alter the fundamental principle on which the company's activity is based, namely that its articles of association play an extremely important role, which is much greater than in the case of public limited liability companies, and that members of a mutual insurance society enjoy considerable freedom to conduct business and categorize its members, which is unparalleled for other legal forms of business activity.

Impact of corporate social responsibility on organization\u2019s financial performance: evidence from Maldives public limited companies

The main objective of this study is to determine the CSR disclosure and to find out the association between CSR and FP by the public companies of Maldives. This study used a mixed-method research choice and is longitudinal research. The study period was from 2014 to 2018. Data were collected from annual reports of the listed companies in MSE. The sampling technique used was judgmental sampling, and the data were analyzed from STATA 15 software by using panel data regression. The finding reveals that diversity and ROA, environment and ROE, diversity, and EPS, and when the size of the firm controlled, there exhibit significant negative relation between CSR and ROA; hence, it can conclude that there exists a significant negative relationship between CSR and FP. This study has implications for the academician and corporate world in understanding CSR and FP in developing countries like the Maldives. One of the main consequences of this study is the CSR framework adopted in this study which is not a custom-tailored instrument specific to the Maldives instead chose from another research paper. Further, the sample size was also very limited due to that generalization may not be possible in a large population. This paper spreads the understanding of the relationship between CSR and FP.

Le caractère d’ordre public du principe de la libre transmissibilité des actions en droit des sociétés commerciales de l’OHADA

Abstract In order to protect various interests and guarantee legal certainty, the OHADA legislator has provided the essential rules for each form or category of company. Thus, the distinction between joint stock companies and public limited companies is based, in particular, on free negotiability and/or the free transferability of shares. To preserve this distinction, the principle of the free transferability of shares is of a public policy nature and therefore justifies a restriction of the contractual freedom of the partners. The latter may in fact have recourse to agreements relating to the transfer of shares (approval clause, preemption clause, inalienability clause) only on condition that this does not entail the abolition of the principle of the free transferability of shares.

Debt Market Trends and Predictors of Specialization: An Analysis of Pakistani Corporate Sector

Recently, debt structure research has started focusing on the strategic perspective of financing choices, particularly to understand the reasons for debt specialization (DS). This paper examines trends of specialization over time and industry by using a comprehensive dataset on types of debt employed by the public limited companies during 2009–2018. The objective of the current study is to analyze the effect of debt market conditions by identifying significant predictors of DS. Time-series and cross-sectional results confirm the existence of DS, which is further validated by the findings of the cluster analysis. The empirical results indicate that overall, 61% of the companies solely rely on a single type of debt, mostly on short-term obligations accompanied by long-term secured and other debts. Moreover, small, mature, rated, group-affiliated, and low-leverage companies incline more towards this strategy. Credit rating, debt maturity, financial and interest coverage ratios serve as the primary determinants of the debt market that are significantly associated with the measures of DS. The results contribute to the capital structure literature by specifying that financing choice has an important implication in deciding the debt structure composition of the organizations.