Corporate Pyramid, Capital Investment and Firm Performance

2010 ◽  
Author(s):  
Chao Chen ◽  
Donglin Xia ◽  
Song Zhu
Keyword(s):  
Firm Performance ◽  
Capital Investment

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

Assessing the Value of Information Technology Investment to Firm Performance

2002 ◽  
pp. 257-278
Author(s):  
Qing Hu ◽  
Robert T. Plant
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Financial Performance ◽  
Capital Investment ◽  
Large Scale ◽  
Performance Data ◽  
It Investment ◽  
Firm Level ◽  
It Investments ◽  
And Performance

The promise of increased competitive advantage has been the driving force behind the large-scale investment in information technology (IT) over the last three decades. There is a continuing debate among executives and academics as to the measurable benefits of this investment. The return on investment (ROI) and other performance measures reported in the academic literature indicate conflicting empirical findings. Many previous studies have based their conclusions on the statistical correlation between IT capital investment and firm performance data of the same time period. In this study we argue that the causal relationship between IT investment and firm performance could not be reliably established through concurrent IT and performance data. We further submit that it would be more convincing to infer causality if the IT investments in the preceding years are significantly correlated with the performance of a firm in the subsequent year. Using the Granger causality models and three samples of firm-level financial data, we found no statistical evidence that IT investments have caused the improvement of financial performance of the firms in the samples. On the contrary, the causal models suggest that improved financial performance over consecutive years may have contributed to the increase of IT investment in the subsequent year. Implications of these findings as well as directions for future studies are discussed.

scholarly journals Impact of Corporate Governance index on Firm Performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 5 (2) ◽  
pp. 1 ◽  
Author(s):  
Faisal Javaid ◽  
Abdul Saboor
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Random Effect ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 manufacturing sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals Capital Investment, Internasionalisasi, Dan Firm Performance Pada Perusahaan Manufaktur Di Bursa Efek Indonesia 2014-2019

2021 ◽  
Vol 19 (1) ◽  
pp. 64-72
Author(s):  
Yovita Yovita
Keyword(s):  
Firm Performance ◽  
Capital Investment ◽  
Fixed Effect Model ◽  
Tobin’S Q ◽  
Sales Growth ◽  
Tobin's Q ◽  
Gdp Growth Rate ◽  
Effect Model ◽  
Non Linear ◽  
Tangible Asset

Abstrak  - Penelitian ini bertujuan untuk menjawab apakah capital investment memengaruhi tingkat internasionalisasi perusahaan, serta untuk menguji efek internasionalisasi terhadap firm performance. Berbagai penelitian terkait efek dari internasionalisasi pada perusahaan telah dilakukan, salah satunya pada firm performance perusahaan yang digambarkan dengan penjualan, profit, hingga nilai perusahaan. Hasilnya pun beragam, sehingga menimbulkan pertanyaan bagaimana dengan efek internasionalisasi pada perusahaan di Indonesia? Perusahaan yang beroperasi di negara dengan pasar terbuka tidak dapat menghindar dari internasionalisasi. Sehingga, fokus dari penelitian tertuju pada 72 perusahaan manufaktur yang secara aktif terlibat dalam aktivitas ekspor dari 2014 hingga 2019, sehingga menghasilkan 360 poin observasi. Capital investment akan diukur dengan variabel CAPEXTA, sedangkan internasionalisasi akan diukur dengan FSTS, dan perubahan level internasionalisasi diukur dengan FSG. Pengukuran efek internasionalisasi terhadap firm performance akan menggunakan ROA dan Tobin’s Q. Beberapa variabel kontrol yang digunakan adalah gdp growth rate, firm size, leverage, tangible asset ratio, market-to-book ratio, gross profit margin, dan sales growth. Hipotesis terkonfirmasi menggunakan regresi data panel dengan fixed effect model. Hasil penelitian menunjukkan CAPEXTA dan internasionalisasi (FSTS) memiliki hubungan negatif signifikan dan non-linear. Pengaruh CAPEXTA pada FSG ditunjukkan sebagai negatif signifikan dan non-linear juga. Sedangkan FSTS dan ROA memiliki hubungan berbentuk U dan positif, di mana hubungan FSTS dan Tobin’s Q adalah positif.Kata Kunci: capital investment, internasionalisasi, foreign sales growth, firm performance, tobin’s q

scholarly journals The impact of Inward FDI on Host country: Firm Performance in New Zealand

2021 ◽  
Author(s):  
◽  
Yi Zou
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Host Country ◽  
Capital Investment ◽  
Service Industry ◽  
Empirical Studies ◽  
Spillover Effects ◽  
Superior Performance ◽  
The Impact ◽  
Local Firms

<p>Foreign direct investment (FDI) and its multinationals' activities are well accepted as an engine of growth by which a host country can benefit from the injection of capital investment, technology and managerial knowhow to build up indigenous competitiveness through spillovers effects and productivity gap between foreign affiliates and local firms New Zealand is a small but developed economy. FDI plays an important role in the development and growth of local industry in New Zealand. In the extant literature, there was very few studies research on the performance gap in New Zealand context. This paper investigates the effect of inward FDI on host country theoretically, focusing on the spillover effects and firm performance. Statistical analysis tests the possibility of performance gap's existence in New Zealand firms. In addition, separated attention is provided to service industry to differ from manufacturing industries that always be testified in many empirical studies. The findings provide evidence that foreign owned firms have superior performance advantages over local firms. But more research needs to be conducted for more conclusive results.</p>

Impact of Venture Capital Investment on Firm Performance: An Indian Evidence

2018 ◽  
Vol 21 (4) ◽  
pp. 1011-1024
Author(s):  
Supriya Katti ◽  
Mehul Raithatha
Keyword(s):  
Firm Performance ◽  
Venture Capital ◽  
Capital Investment ◽  
Secondary Market ◽  
The Other ◽  
Listed Firms ◽  
Venture Capital Investment ◽  
Empirical Results ◽  
Opportunistic Behaviour ◽  
Negative Effect

We evaluate the monitoring and certification hypotheses associated with venture capital (VC) investors involved with Indian listed firms having the potential to influence firm performance. Empirical results of our study do not support monitoring and certification hypotheses associated for VC investors involved in publicly listed firms in India. On the other hand, we find the evidence of value erosion due to the presence of VC investors. The negative effect is justified through the opportunistic behaviour of the investor having a very easy route to exit investment through the secondary market in case of expected underperformance of the firm. The study also reveals that the origin of VC investors does influence firm performance. The results have a significant impact due to the regulatory framework defining the portfolio of VC investors.

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