scholarly journals Investment and performance of firms: Correlation or causality?

2008 ◽  
Vol 6 (2) ◽  
pp. 268-282 ◽  
Author(s):  
Almas Heshmati ◽  
Hans Lööf
Keyword(s):  
Performance Indicators ◽  
Value Added ◽  
Physical Capital ◽  
Significant Heterogeneity ◽  
Firm Level ◽  
Vector Autoregressive ◽  
Performance Variables ◽  
Show Evidence ◽  
And Performance ◽  
Performance Behavior

This paper provides an empirical analysis of the two-way causal relationship between investment and performance indicators at the firm level. The performance variables include sales, value added, profit, cash flow, capital structure and employment. The investment variables are research and development and physical capital. A multivariate vector autoregressive approach is applied to a panel of Swedish firms observed between 1992 and 2000. Results show evidence of some two-way causal relationships, which are mainly transitory in character. Significant heterogeneity is observed in the firms’ investment and performance behavior by their size.

scholarly journals From Catching Up to Convergence of the Latecomer Firms: Comparing Behavior and Innovation Systems of Firms in Korea and the US

2021 ◽  
Vol 7 (3) ◽  
pp. 191
Author(s):  
Buru Im ◽  
Keun Lee
Keyword(s):  
Innovation System ◽  
Regression Analyses ◽  
Firm Level ◽  
Performance Variables ◽  
Catching Up ◽  
Early Results ◽  
The Us ◽  
And Performance ◽  
Latecomer Firms ◽  
System Variables

This paper addresses the issue of catching and convergence at the level of firms, and investigates whether Korean firms tend to converge toward mature firms represented by the US firms in terms of their behavior and performance as well as firm-level innovations systems. It conducts regression analyses of several behavior and performance variables, using the data of the Korean and US firms during the 1990s, the 2000s, and 2010s. It finds some evidence of convergence, such that Korean firms become more profitability- rather than growth-oriented, borrowing and investing less, and thus being less indebted. However, they have not changed much in terms of their behavior toward firm values and dividend tendencies. Further analyses, using the patent-derived, innovation system variables, also confirm some aspects of convergence, compared with the early results, for which self-citations become significant and positive for firm values; furthermore, the variable of cycle time of technology is no longer significant for profitability, which is consistent with the results from the US firms. Meanwhile, changes in corporate governance associated with the rise of foreign shareholder are also shown to have resulted in higher profitability but insignificant change in firm values. An emerging conclusion is an ongoing but partially completed process of convergence.

scholarly journals Developments and challenges of measuring M&A performance on a corporate and macroeconomic levels

2017 ◽  
Vol 8 (2) ◽  
pp. 199
Author(s):  
Karolis Andriuskevicius ◽  
Remigijus Ciegis
Keyword(s):  
Empirical Studies ◽  
Value Added ◽  
Scientific Article ◽  
Methodological Framework ◽  
Firm Level ◽  
Performance Framework ◽  
Recent Developments ◽  
Business Cases ◽  
And Performance ◽  
A Performance

Research background: This study presents the results of the research which aimed to iden-tify and critically discuss existing methodologies in the merger and acquisition field. Value creation to merging and acquiring firms and national countries constitute the center of the research. This study distinguishes between specific methodologies employed to gauge M&A performance on a micro- (corporate) and macro- (economy and society) economic levels. The final section of the paper concludes with a theoretical methodological framework integrating methodologies employed to measure M&A performance on a firm level and methodologies measuring consequences and effects of M&A on the economy. The aim of the analysis described in the paper is to ascertain and evaluate theoretically existing methodologies used in empirical studies that would allow proper and critical understanding of the results of various findings in the holistic and global M&A area.Purpose of the article: The purpose of the paper is to investigate and critically discuss the methodologies employed within the M&A performance framework with the focus on specific anticipated outcomes of the M&A deal and methodology measuring this outcome. The following objectives are being raised: (1) To identify recent developments in the M&A market and determine challenges and changes they encompass; (2) To identify and critically discuss anticipated outcomes of the M&A deal and existing methodologies measuring M&A performance on the corporate level; (3) To identify and critically discuss anticipated outcomes of the M&A deal on the economy and methodologies measuring consequences and effects of M&As on the macro- economic level; (4) To integrate methodologies measuring M&As performance on a micro- and macro- eco-nomic levels into theoretical methodological framework enabling scholars and practitioners to evaluate M&A performance from a holistic perspective.Methods: Based on previous studies, the authors conduct a structured literature review aimed to critically discuss and evaluate developments and challenges of measuring M&A performance on corporate and macroeconomic levels. The research is carried out as a struc-tured assessment of past literature. The findings from scientific articles and studies by various scholars are being categorized, grouped and summarized to discern a meta‐analytic view of the work carried out to date. Finally, deep analysis of scientific literature, logical comparative analysis, systematization of scientific article and business cases are employed in the article.Findings & Value added: The paper evidences developments and challenges of measuring M&A performance on corporate and macroeconomic levels.  The re-search elaborates on several key developments in M&A methodology and performance studies carried out in empirical works during the last two decades. The findings help to independently and objec-tively assess performance of M&A from a holistic perspective.

scholarly journals The influence of the Washington Consensus programme on the transitional economies of Eastern Europe - a firm-level analysis

2020 ◽  
Vol 65 (226) ◽  
pp. 9-44
Author(s):  
Peter Howard-Jones ◽  
Jens Hölscher
Keyword(s):  
Market Failure ◽  
Value Added ◽  
Washington Consensus ◽  
The European Union ◽  
Production Networks ◽  
Productivity Improvement ◽  
Firm Level ◽  
International Production ◽  
National Welfare ◽  
And Performance

This research explores the effectiveness of the Washington Consensus (WC) programme as a mechanism for improving national welfare in transition and emerging economies, using its internalisation by the European Union (EU) as a proxy. The results indicate that there is a positive benefit to firms with accession to the EU, leading to greater productivity improvement and performance advantages than in non-member states. Foreign direct investment directly benefitted those firms that became investees, with little evidence of spillovers to domestic companies. The vertical nature of the investment, with an emphasis on international production networks that utilise significant levels of foreign inputs, infers protection of intellectual property and a reduction in value added, with results indicating a failure to achieve an export multiplier. There is evidence of substantial benefits accruing to firms in receipt of loans, but the apparent paucity of their availability may imply market failure. The gains made by innovative firms do not appear to do justice to the initiatives undertaken and may indicate a dilution of national innovative capacity.

Intellectual capital and performance of pharmaceutical firms in India

2014 ◽  
Vol 15 (1) ◽  
pp. 83-99 ◽  
Author(s):  
Sriranga Vishnu ◽  
Vijay Kumar Gupta
Keyword(s):  
Intellectual Capital ◽  
Model Development ◽  
Value Added ◽  
Future Research ◽  
Content Type ◽  
Performance Variables ◽  
Pharmaceutical Firms ◽  
Multiple Regression Technique ◽  
And Performance ◽  
Result Analysis

Purpose – The purpose of this paper is to study the relationship between intellectual capital (IC) and performance of pharmaceutical firms in India. The secondary objective is to propose and test modified models of Value Added Intellectual Coefficient (VAIC™) method. Design/methodology/approach – Data on 22 large pharmaceutical firms collected for empirical investigation. Return on assets and return on sales are performance variables. IC and its components – human capital, structural capital and relational capital (RC), are predictor variables. Three extended and modified VAIC™ models (e-VAIC™) are proposed. Multiple regression technique is applied on pooled data to draw inferences. Findings – Results show instances of positive relationship between IC and performance variables. RC, the new variable, does not demonstrate statistically significant relationship with performance variables. Research limitations/implications – Due to inadequate reporting of IC and its components, availability of data on various proxies is difficult. The new models proposed in this paper can be a template for future research and model development. Practical implications – VAIC™ model, the proposed models (e-VAIC™) and the result analysis can be useful for evaluation and value creation purposes. Originality/value – Previous researchers use original VAIC™ model. This paper modifies and extends the model in accordance with contemporary description and typology of IC. Inclusion of RC as a variable in VAIC™ model and use of new proxies for components of IC are the novelties of this paper.

Replication of the Superstition and Performance Study by

2014 ◽  
Vol 45 (3) ◽  
pp. 239-245 ◽  
Author(s):  
Robert J. Calin-Jageman ◽  
Tracy L. Caldwell
Keyword(s):  
Task Difficulty ◽  
Statistical Power ◽  
Meta Analysis ◽  
A Priori ◽  
Significant Heterogeneity ◽  
Performance Study ◽  
Improve Performance ◽  
Research Designs ◽  
Series Of Experiments ◽  
And Performance

A recent series of experiments suggests that fostering superstitions can substantially improve performance on a variety of motor and cognitive tasks ( Damisch, Stoberock, & Mussweiler, 2010 ). We conducted two high-powered and precise replications of one of these experiments, examining if telling participants they had a lucky golf ball could improve their performance on a 10-shot golf task relative to controls. We found that the effect of superstition on performance is elusive: Participants told they had a lucky ball performed almost identically to controls. Our failure to replicate the target study was not due to lack of impact, lack of statistical power, differences in task difficulty, nor differences in participant belief in luck. A meta-analysis indicates significant heterogeneity in the effect of superstition on performance. This could be due to an unknown moderator, but no effect was observed among the studies with the strongest research designs (e.g., high power, a priori sampling plan).

Physical and performance variables for talent identification in water polo

2020 ◽  
Vol 60 (10) ◽  
Author(s):  
Valerio Viero ◽  
Tamara Triossi ◽  
Daniele Bianchi ◽  
Alessandro Campagna ◽  
Giovanni Melchiorri
Keyword(s):  
Talent Identification ◽  
Performance Variables ◽  
Water Polo ◽  
And Performance

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals Comparative analysis of models and performance indicators for optimal service facility location

2021 ◽  
Vol 145 ◽  
pp. 102174
Author(s):  
Edoardo Fadda ◽  
Daniele Manerba ◽  
Gianpiero Cabodi ◽  
Paolo Enrico Camurati ◽  
Roberto Tadei
Keyword(s):  
Comparative Analysis ◽  
Facility Location ◽  
Performance Indicators ◽  
Service Facility ◽  
Optimal Service ◽  
And Performance
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