scholarly journals Exploring the Dynamics between M&A Activities and Industry-Level Performance

2020 ◽  
Vol 12 (11) ◽  
pp. 4399 ◽  
Author(s):  
Jinho Choi ◽  
Nina Shin ◽  
Hee Soo Lee
Keyword(s):  
Financial Performance ◽  
Time Lag ◽  
Investment Planning ◽  
Firm Level ◽  
Strategic Investment ◽  
Emerging Industries ◽  
Industry Level ◽  
Industry Sectors ◽  
Transaction Value ◽  
Level Performance

This study investigates the correlation between mergers and acquisitions (M&As) activities and industry-level performance. While extensive research on M&As has focused on financial performance at the firm-level around the merger announcement, not much focus has been given to the relationship between M&A activities and financial performance at the industry level. Using global data from the S&P (Standard & Poor’s) Capital IQ platform database, this study examines the significance of relationships of 12 industry-level financial values with M&A frequency and transaction value across 11 industry sectors throughout 2009–2018. The results show that M&A activities play a key role in identifying industries with lots of potential and that strategic investment planning can be drawn from both industry and time lag perspectives. This study bridges the gap by exploring the complexity of M&A performance across various firms and industries, and supports forward-looking investment processes by delineating emerging industries with expected positive returns.

scholarly journals Exploring the Initial Impact of COVID-19 Sentiment on US Stock Market Using Big Data

2020 ◽  
Vol 12 (16) ◽  
pp. 6648
Author(s):  
Hee Soo Lee
Keyword(s):  
Big Data ◽  
Stock Market ◽  
Factor Model ◽  
Time Lag ◽  
Google Trends ◽  
Investment Planning ◽  
Excess Returns ◽  
Time Series Regression ◽  
Strategic Investment ◽  
Daily News

This study explores the initial impact of COVID-19 sentiment on US stock market using big data. Using the Daily News Sentiment Index (DNSI) and Google Trends data on coronavirus-related searches, this study investigates the correlation between COVID-19 sentiment and 11 select sector indices of the Unites States (US) stock market over the period from 21st of January 2020 to 20th of May 2020. While extensive research on sentiment analysis for predicting stock market movement use tweeter data, not much has used DNSI or Google Trends data. In addition, this study examines whether changes in DNSI predict US industry returns differently by estimating the time series regression model with excess returns of industry as the dependent variable. The excess returns are obtained from the Fama-French three factor model. The results of this study offer a comprehensive view of the initial impact of COVID-19 sentiment on the US stock market by industry and furthermore suggests the strategic investment planning considering the time lag perspectives by visualizing changes in the correlation level by time lag differences.

The Effect of the Xi Jinping Administration’s Anticorruption Campaign on the Performance of State-Owned Enterprises

Asian Survey ◽  
2021 ◽  
pp. 1-31
Author(s):  
Long Piao ◽  
Kwangho Jung
Keyword(s):  
Financial Performance ◽  
Xi Jinping ◽  
Firm Level ◽  
Private Companies ◽  
Country Level ◽  
Transitional Phenomenon ◽  
Before And After ◽  
Comparison Groups ◽  
The Relationship ◽  
Level Performance

There has been a debate on how the state-driven anticorruption movement during the Xi Jinping administration has influenced state-owned enterprises (SOEs). Research has examined the relationship between corruption and economic development at the country level in Asia and has found paradoxically that economic growth and high corruption levels can coexist. However, the “Asian paradox” that appears at the country level may be a transitional phenomenon of the short term. Not many researchers have empirically compared individual firm-level performance before and after a strong anticorruption drive, drawing on relevant comparison groups. This study tests whether Xi’s 2012 anticorruption campaign improved SOEs’ performance. With a difference-in-differences method, it explores whether the anticorruption campaign had different effects on the financial performance of SOEs and non-SOEs (private companies). We find that the anticorruption initiative improved SOEs’ financial performance and benefited SOEs more than non-SOEs.

Firm performance, business environment, and outlook for social and environmental responsibility during the economic downturn: findings and implications from the forest sector

2013 ◽  
Vol 43 (12) ◽  
pp. 1137-1144 ◽  
Author(s):  
Eric Hansen ◽  
Erlend Nybakk ◽  
Rajat Panwar
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Business Environment ◽  
Environmental Responsibility ◽  
Forest Sector ◽  
Economic Downturn ◽  
Firm Level ◽  
The Us ◽  
Social And Environmental Performance ◽  
Level Performance

The recent economic downturn severely affected the US forest sector from a macroeconomic perspective but little is known about changes in firm-level performance. In this study we investigate the changes in financial, social and environmental performance of forest sector firms during a period that approximately corresponds to the downturn. We also assess industry dynamism and industry’s view about social and environmental responsibility as a competitive tool. We conducted a national survey of wood, furniture, and paper companies. Approximately 60% of our respondents reported a decline in financial performance during the downturn. With respect to social and environmental performance, customer-oriented actions show mixed trends, employee matters remained somewhat unaltered, community engagement significantly decreased, and engagement in environmental activities significantly increased. Respondents view their operating business environment as highly dynamic and difficult and they do not view engagement in social and environmental responsibility activities leading to either financial or nonfinancial benefits.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

AGGREGATE MARKUP DYNAMICS: EVIDENCE FROM CHINA

2021 ◽  
pp. 1-21
Author(s):  
YUE WEN
Keyword(s):  
Trade Liberalization ◽  
Decomposition Method ◽  
Dynamic Change ◽  
Manufacturing Firms ◽  
Sample Period ◽  
Upward Trend ◽  
Firm Level ◽  
Industry Level ◽  
New Perspective

Unlike previous studies that focus on the change of firm-level markup, this study focuses on the change of industry-level aggregate markup. From the data of China’s manufacturing firms in 1999–2007, this study exploits the dynamic change of aggregate markup by using the decomposition method which is proposed by Melitz and Polanec (2015). The result shows that China’s manufacturing aggregate markup has an upward trend during the sample period, which mainly comes from the contribution of surviving firms. On the contrary, the contribution of entering and exiting firms to the aggregate markup is negative. Further analysis shows that trade liberalization is one of the reasons to promote the increase of China’s manufacturing aggregate markup. This study provides a new perspective for understanding the dynamic change of the aggregate markup.

The effect of industry association on firm innovation in Chinese private ventures

2019 ◽  
Vol 57 (9) ◽  
pp. 2414-2435
Author(s):  
Wenge Zhang ◽  
Jun Li ◽  
Yiyuan Mai
Keyword(s):  
Moderating Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Data Set ◽  
Industry Association ◽  
Content Type ◽  
Emerging Industries ◽  
Practical Implications ◽  
Firm Learning

Purpose The purpose of this paper is to examine the relationship between industry association membership and firm innovation in Chinese private ventures. A secondary objective is to investigate potential moderating effects of firm learning practices and founder characteristics on the above relationship, and to draw out implications for policymakers and practitioners. Design/methodology/approach The paper utilizes data from a sample of 567 Chinese entrepreneurial firms operating in 9 designated emerging industries. Hierarchical regression models were employed to analyze the effect of industry association membership on firm innovation, and the potential moderating effects. A 2SLS procedure was adopted to control for potential endogeneity issue. Supplemental analyses were conducted to ensure the robustness of the findings. Findings The paper provides empirical insights about how industry association membership, along with firm learning practice and founder leadership, affect firm innovation in Chinese private ventures in emerging industries. It suggests that industry association membership positively affects firm innovation. Further, there is a three-way interaction effect of industry association membership, learning practice and founder power on innovation. Research limitations/implications Due to the design of the data set, there are some limitations. First, the study only considered whether a firm belongs to an industry association, but not the nature of such membership (length, firm status in the association, etc.). Second, the cross-sectional design may limit the power of the study to make casual implications about the tested relationships. Practical implications The paper provides important practical implications for policymakers and entrepreneurs in China. In general, the results suggest that private ventures pursuing innovation in emerging industries can benefit from industry associations, and entrepreneurs shall actively engage in firm-level and personal-level learning. For policymakers, the study suggests that to foster innovation in an emerging industry, special attention shall be paid to building necessary institutional support to develop and to strengthen the role of industry association in the industry. Originality/value This paper fulfills an important gap in the literature in that it is one of the first, which investigates the role of the industry association in firm innovation, especially in a non-western context. This paper provides new insights into the role of industry association and firm innovation in an under-researched developing economy context.

Coexisting Agency and Stewardship Governance in Family Firms: An Empirical Investigation of Individual-Level and Firm-Level Effects

2017 ◽  
Vol 30 (4) ◽  
pp. 347-368 ◽  
Author(s):  
Kristen Madison ◽  
Franz W. Kellermanns ◽  
Timothy P. Munyon
Keyword(s):  
Family Firms ◽  
Empirical Investigation ◽  
Future Research ◽  
Firm Level ◽  
Research Directions ◽  
Agent Behavior ◽  
Individual Level ◽  
Future Research Directions ◽  
Level Performance ◽  
Triadic Data

This article theoretically and empirically intertwines agency and stewardship theories to examine their distinct and combined influences on family firms. Primary matched triadic data from CEOs, family employees, and nonfamily employees in 77 family firms suggest that agency and stewardship governance affects individual-level behavior and firm-level performance. Specifically, agent behavior is highest under conditions of coexisting low agency governance and high stewardship governance and is lowest when agency and stewardship governance coexist at high levels. Furthermore, when high levels of agency and stewardship governance coexist, family firm performance is the highest. Theoretical implications and future research directions are discussed.

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