Does Demutualization Enhance Financial Performance of Stock Exchanges in Developing and Emerging Economies?

2013 ◽  
Vol 22 (7-8) ◽  
pp. 461-469 ◽  
Author(s):  
Alyas Qadeer Tahir ◽  
Abdul Wahid Sial
Keyword(s):  
Financial Performance ◽  
Emerging Economies ◽  
Stock Exchanges

Performance Sports Group: To Invest or Not to Invest

2017 ◽  
Vol 6 (1) ◽  
pp. 76-85
Author(s):  
Erin P. Jackson ◽  
Stefania Ciulla ◽  
Frederik Ehlen ◽  
Ayobami Ogunlana ◽  
Jess C. Dixon
Keyword(s):  
New York ◽  
Financial Performance ◽  
Parent Company ◽  
Financial Ratios ◽  
Stock Exchanges ◽  
Industry Analysis ◽  
Publicly Traded ◽  
Sporting Goods ◽  
Financial Analyses

In August of 2015, Felix Farmer received notice that he would be inheriting a large sum of money from his great-uncle’s will. Farmer is contemplating investing $50,000 CAD ($38,251 USD) of his inheritance in the parent company of his favorite hockey brand, Bauer. Performance Sports Group (PSG) is a leading manufacturer in the global sporting goods industry that is publicly traded on both the Toronto and New York Stock exchanges, and the parent of such highly successful brands as Bauer and Easton. This case study challenges students to calculate financial ratios, apply various other financial analyses to understand the financial performance of PSG, and complete a Porter’s (2008) Five Forces industry analysis as a means of deciding whether Farmer should invest a portion of his inheritance with PSG.

Currency risk impact on the financial performance of multilateral banks

2015 ◽  
Vol 13 (1) ◽  
pp. 91-118
Author(s):  
Philip Kamau ◽  
Eno L. Inanga ◽  
Kami Rwegasira
Keyword(s):  
Financial Performance ◽  
Design Methodology ◽  
Regression Coefficient ◽  
Policy Implications ◽  
Stock Exchanges ◽  
Currency Risk ◽  
Content Type ◽  
Regulatory Status ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the impact of currency risks on the financial performance of multilateral banks (MBs). Financial performance is measured here by after-tax accounting profitability or losses. Design/methodology/approach – Quantitative hypothesis regarding the impact of currency risks on the financial performance of MBs was tested by a two-tailed t test for significance of the b regression coefficient. Findings – A regression analysis was done on the total currency risk and financial performance of MBs after taking into account currency risk over eight years. The analysis of variance of the regression of the b coefficient led to non-rejection of the null hypothesis of no association, F(1, 6) = 0.77, p > 0.05. The results of the two-tailed t test on the b regression coefficient suggest that the relationship between currency risk and financial performance is statistically insignificant. Therefore, it was concluded that there is no significant impact of currency risk on the financial performance of MBs. Research limitations/implications – The results of the study can be generalized only for MBs given their peculiar characteristics as wholesale banks, which are owned mainly by governments and are generally not listed on stock exchanges. Originality/value – The study is of value to those interested in the multilateral banking industry. To the authors’ knowledge it is the first study providing empirical evidence on currency risk impact on MBs financial performance. The study finds that the currency risk impact on the financial performance of MBs is insignificant. The results are also useful to managers of MBs in terms of benchmarking their effectiveness in managing currency risk compared to their peers and learn from better performers. It has also policy implications in terms of justifying the current self-regulatory status, shareholder monitoring and governance of MBs as they are not significantly impacted by currency risk as it appears to be effectively managed.

scholarly journals “You Cannot Hide Forever Luke”: Understanding the Strategic Use of Sustainability Disclosure in the Short and Long Term

M n gement ◽  
2020 ◽  
pp. 19-37
Author(s):  
Samuel Touboul ◽  
Asli Kozan
Keyword(s):  
Longitudinal Data ◽  
Financial Performance ◽  
Stock Exchanges ◽  
Legitimacy Theory ◽  
Short Term ◽  
Sustainability Performance ◽  
Sustainability Disclosure ◽  
Short And Long Term ◽  
Detrimental Impact

This study investigates the relationships among firms’ sustainability disclosure, sustainability performance, and financial performance. Based on legitimacy theory and signaling theory, it argues that sustainability disclosure participates in two distinct mechanisms: a conformity mechanism through which disclosure shows conformity to the norms and a revelation mechanism through which disclosure reveals or hides a firm’s achieved degree of sustainability. In an attempt to contrast and reconcile the two mechanisms, the study assesses their impact on financial performance in the short and long term. Hypotheses are tested using longitudinal data (2002–2010), which cover 10,814 observations of firms from major indexes of stock exchanges worldwide. The results show that the conformity mechanism is effective in both the short and long terms, whereas the revelation mechanism is only effective in the short term. As a consequence, firms with poor sustainability performance may hide their detrimental impact and achieve higher financial performance in the short term by limiting their disclosure but not in the long term in which their lack of conformity is punished. In the long term, only conformity to the norms of disclosure leads to higher financial performance, even in the case of poor sustainability results.

Sustainability and financial performance relationship: international evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilker Yilmaz
Keyword(s):  
Financial Performance ◽  
Emerging Economies ◽  
Corporate Sustainability ◽  
Joint Effect ◽  
Business Practices ◽  
Content Type ◽  
Firm Financial Performance ◽  
International Evidence ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of the article is to examine the relationship of corporate sustainability to firm financial performance by presenting international data.Design/methodology/approachThe sample includes non-financial companies from five emerging economies known as BRICS for a five-year period of 2014–2018. The study uses the ESG (environmental, social, governance) scores from Sustainalytics database and financial data from company reports. Panel regression models are developed to figure out the relationship.FindingsThe results of the article revealed that there is a positively significant relationship between sustainability performance and financial performance. Total ESG score has produced significant results while the individual scores of environmental, social, and governance have produced insignificant results; implying that the components of total ESG score have a joint effect on the financial performance.Practical implicationsThe results of the article have important practical implications for companies. Engagement in sustainable business practices will help improve the financial performance. In addition, the companies should be active in all components of sustainability.Originality/valueThe article contributed empirical evidence for sustainability-financial performance relationship by using the international evidence from five emerging economies.

scholarly journals MNC CSR in Emerging Economy Conflict Zones– A Case Study of HUL's North-East Operations in India

2013 ◽  
Vol 38 (4) ◽  
pp. 69-82 ◽  
Author(s):  
Tulsi Jayakumar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Markets ◽  
Financial Performance ◽  
Emerging Economies ◽  
Developing Economies ◽  
Sustainable Growth ◽  
Conflict Zones ◽  
Conflicting Objectives ◽  
Corporate Social

For multinational corporations (MNCs) operating in emerging markets, the fast-growing wealth represents a tremendous opportunity. At the same time, these emerging markets also present a huge challenge to the MNCs due to underdeveloped institutional environment, weak public governance, widespread bribery and corruption, and lack of regulatory legislations and rules, public transparency, and respect for human rights. MNCs are likely to view foreign direct investment (FDI) in emerging economies as a major component of their cost minimization policies. As such, corporate social responsibility (CSR) initiatives, which are used by MNCs as a key source to gain sustainable competitive advantage in developed countries may get diluted in emerging economies. Such a myopic view may enhance short-term profits, but would not ensure long-term sustainability. Most of the research on CSR has focused on the strategies of companies in the developed world. The literature on MNCs in developing economies and CSR is still embryonic. As CSR becomes increasingly important to MNCs, it is crucial to understand how MNCs' subsidiaries approach CSR in emerging markets so as to realize the challenges MNCs' subsidiaries face in aligning their CSR approach with local practices. The questions of how MNCs' subsidiaries approach CSR in emerging markets and how they adapt to local CSR practices remain largely under-explored. Another area of recent research pertains to MNC CSR in ‘conflict zones’ and their potential. Can the otherwise mutually conflicting objectives of Corporate Social Responsibility and Corporate Financial Performance be seen going hand in hand in such ‘conflict zones’ Can a cause-effect relationship be posited, especially in such conflict zones, with the success of the latter riding on a satisfactory performance of the former? This paper analyses the CSR practices followed by HUL in its unit in DoomDooma, Assam in the period 2001–2004, a period which was one of the most tumultuous periods in the history of HUL operation in India. The largest personal care products factory set up in DoomDooma to take advantage of the government's concessions to encourage the region's development, witnessed serious challenges in the form of local bandhs (closures), followed by an attack by the militant group, ULFA. Yet, the productivity contribution of the Assam factory was one of the highest and in fact was responsible for the company's top line growth. It is suggested that the financial performance was due in no small measure, to the corporate responsibility measures undertaken internally and externally by the company. The former consisted of the measures undertaken vis-a-vis the key stakeholders, viz. employees, consumers, ecosystem, and business partners while the external CR measures were with respect to the specific CSR initiatives undertaken keeping in mind the needs and expectations of the local community. Thus, the company's CR initiatives helped in sustainable growth.

Quantitative impacts of mandatory integrated reporting

2019 ◽  
Vol 17 (4) ◽  
pp. 604-634 ◽  
Author(s):  
Elaine Conway
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Risk Measures ◽  
Ordinary Least Squares ◽  
Mandatory Reporting ◽  
Stock Exchanges ◽  
Integrated Reporting ◽  
Content Type ◽  
Environmental Goals ◽  
The Impact

Purpose This paper aims to examine the impact of the 2011 mandatory introduction of integrated reporting (<IR>) on the financial performance, risk and institutional shareholding of listed companies in South Africa to assess whether there is a benefit to <IR> and which may encourage greater adoption of it globally. It contrasts the results with two other African stock exchanges (Nigeria and Egypt with no mandatory <IR>) and examines whether <IR> quality also has an impact on these and on environmental, social and governance (ESG) disclosure scores. Design/methodology/approach A series of multivariate ordinary least squares regressions was estimated on a range of financial, risk, institutional and ESG data from firms on the three African stock exchanges, between 2006 and 2015. Findings Financial performance and risk in South African firms appear to have decreased since the start of mandatory reporting, but institutional shareholding has increased. The production of higher quality reports is associated with decreased financial performance and risk, higher institutional shareholding and increased ESG scores. Originality/value This study is first to test the quantitative effects of <IR> and <IR> quality on a broad range of financial performance and risk measures and the level of institutional shareholding. It also adds to the literature by assessing how the quality of <IR> can impact the ESG scoring of the business. Hence, this study is of interest to firms looking to adopt <IR> for its benefits and to regulatory bodies considering the mandatory adoption of <IR> in support of achievement of national social and environmental goals.

scholarly journals ANALYSIS OF THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE PERFORMANCE (Empirical Study on Manufacture Companies Listed on Stock Exchanges in Indonesia Periode 2010 - 2012 )

2014 ◽  
Vol 1 (1) ◽  
pp. 78
Author(s):  
Wiyan Patria ◽  
Rossje V Suryaputri
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Stock Exchanges ◽  
Return On Equity ◽  
Unexpected Earnings ◽  
Corporate Social

<span class="fontstyle0">The purpose of this study is to determine the influence of corporate social responsibility on corporate performance. Samples were taken as much as 252 which consists of 84 companies listed on the Indonesia Stock Exchange in 2010- 2012. The variables used in this study are (ROE (return on equity), CSR (corporate social responsibility), CAR (Cumulative abnormal returns. DER (debt to equity ratio), SG (Sales growth), Beta, EU (Unexpected earnings ) as control variables.The results Showed that CSR does not have a significant influence on Return On Equity (ROE) as a measurement of financial performance and the company's cumulative abnormal return (CAR) as a performance measurement of the company's market. In the future studies are advised to conduct research with other variables in addition to Corporate Social Responsibility (CSR) which may affect the company's financial performance and corporate markets</span><span class="fontstyle2">.</span>

scholarly journals Shareholder types, their concentration and its effects on demutualized exchanges’ operating and financial results - An empirical study

2014 ◽  
Vol 11 (4) ◽  
pp. 114-130 ◽  
Author(s):  
Samer Iskandar
Keyword(s):  
Empirical Study ◽  
Financial Performance ◽  
Conflicts Of Interest ◽  
Stock Exchanges ◽  
Measurable Effect ◽  
Share Ownership ◽  
Lower Performance ◽  
True Value ◽  
Different Types ◽  
Depth Study

Scholars are divided over whether listing the shares of stock exchanges improves their financial performance. Applying simple OLS regressions, I test the hypothesis that exchanges’ post-IPO owners are value maximizers. However, recently demutualized exchanges have a high proportion of shareholders with conflicts of interest. Therefore, I also test whether different types of shareholders have different effects on performance. I find that investment managers behave like true value maximizers. The results also show that a higher fragmentation of share ownership is associated with lower performance. The proportion of brokers, who are the most conflicted shareholders in exchanges (since they are large customers as well as owners), is too small to have a measurable effect on performance. Most interestingly I find, by way of an inductive approach to shareholding structure, that strategic shareholders, a wide array of investors with various agendas, are on balance detrimental to shareholder value. This chapter is the first in a trilogy of articles that make up my Ph.D. dissertation. It is followed by an in-depth study of the shareholding structure of individual stock exchanges, notably in order to understand more clearly who these strategic investors are and what effects they have on exchanges.

Sign in / Sign up

Export Citation Format

Share Document