scholarly journals Management Overconfidence and CSR Activities in Korea with a Big Data Approach

2020 ◽  
Vol 12 (11) ◽  
pp. 4406
Author(s):  
Sun-A Kang ◽  
Sang-Min Cho
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Stock Exchange ◽  
Least Square ◽  
Future Research ◽  
Firm Level ◽  
Ordinary Least Square ◽  
Prior Literature ◽  
Corporate Social ◽  
The Impact

We examined the relationship between management characteristics and corporate social responsibility (CSR) and this relationship was differentiated by the level of corporate governance. Our analysis was undertaken in firms listed on the Korean Stock Exchange (KSE) from 2006 to 2015. We employed Ordinary Least Square (OLS) regression after clustering the standard errors at the firm level in order to examine these relationships. The KEJI (Korea Economic Justice Institute) index was used as a proxy for CSR and a big data-based proxy estimated from multimedia was used as the level of advertising. We showed that there is a positive relationship between overconfident management and CSR activities. We then categorized the CSR activities as primary and social activities and found that overconfident management is more aggressive in primary CSR activities. In addition, overconfident management makes fewer CSR expenditures when the management is in a chaebol firm but promotes more CSR advertisement. This finding indicates that chaebol affiliation controls overinvestment in CSR activities but promotes CSR advertisements by overconfident managers. Similarly, we found consistent results with overconfident owner-managers. Prior literature on CSR activities focuses on the impact of CSR activities on firm performance. In this paper, we elucidated the determinants of CSR activities, so that this research contributes to firms’ decision-making about sustainable management. Our estimation of CSR variables with big data approaches will also guide future research on this issue. We expect our study to be used as a reference for decision-making by relevant authorities and stakeholders.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

scholarly journals THE EFFECT OF MANAGERIAL OVERCONFIDENCE ON CORPORATE INVESTMENT

2020 ◽  
Vol 10 (1) ◽  
pp. 49
Author(s):  
Mochamad Ali Fudin Al Islami ◽  
Muhammad Madyan
Keyword(s):  
Maximum Likelihood ◽  
Positive Impact ◽  
Stock Exchange ◽  
Likelihood Estimation ◽  
Corporate Investment ◽  
Least Square ◽  
Analysis Method ◽  
Ordinary Least Square ◽  
Managerial Overconfidence ◽  
The Impact

The research aims to analyze the impact of managerial overconfidence on corporate investment (investment scale, overinvestment and underinvestment) using companies listed in Indonesia’s Stock Exchange in 2012-2018 as a sample. The analysis method used Ordinary Least Square and robustness test used Maximum Likelihood  Estimation. The result shows that managerial overconfidence has a significantly positive impact on the corporate investment scale. It means that managerial overconfidence makes overinvestment problem more severe (more inefficient) and underinvestment problem less severe (more efficient).

scholarly journals INTEREST RATE REGIME AND THE PERFORMANCE OF THE NIGERIAN CAPITAL MARKET

2015 ◽  
Author(s):  
Edirin Jeroh ◽  
C. M. Ekwueme
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Capital Market ◽  
Stock Exchange ◽  
Least Square ◽  
Policy Makers ◽  
Ordinary Least Square ◽  
Policy Review ◽  
Policy Measures ◽  
The Impact

This study x-ray’s the interest rates regime in Nigeria as it affects the performance of the Nigerian Capital Market. In order to achieve this objective, relevant data for a period of 33 years spanning from 1981 – 2013 were obtained from the Factbook of the Nigerian Stock Exchange, CBN Statistical Bulletin as well as the annual accounts of quoted firms for the relevant years. The data obtained were analysed with the Ordinary Least Square (OLS) technique. The result from our analysis reveal among others that changes in interest rate regimes have majorly influenced the level of the performance of the Nigerian Capital Market. Based on the above, we recommend that capital market regulators and other regulatory agencies should keep an eye on movements in interest rates and the Minimum Rediscount Rate (MRR) (now MPR) and watch their trend. We also recommend that efforts must be put in place to establish a policy review and reassessment mechanism that would help in assessing the impact of selected policy measures on the economy so that policy makers would know the effectiveness and efficiency of designed policies and be guided in the policy review and development process in the country.

Understanding IFRS adoption

2019 ◽  
Vol 20 (4) ◽  
pp. 543-570 ◽  
Author(s):  
Olfa Riahi ◽  
Walid Khoufi
Keyword(s):  
Logistic Regression ◽  
Least Square ◽  
Future Research ◽  
Behavioral Factors ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ifrs Adoption ◽  
Starting Point ◽  
Behavioral Attribute ◽  
The Impact

Purpose The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other words, this work looks to identify the different variables that are likely to influence the adoption of IFRS in these countries. Design/methodology/approach The methodological orientation of this research is to highlight and analyze the correlation between the cited factors and the IFRS adoption in DCs. Tested models are functions of logistic regression. To assess the parameters of these functions, the commonly used method is not that of ordinary least square but the maximum likelihood technique. In short, this study followed a hypothetical-deductive methodology by referring to the application of a logistic regression for each of the variables presumed to be analyzed. The authors implement this empirical model by using the neo-institutional approach and basing on a sample of 108 DCs. Findings The empirical results show that there exists a bidirectional causal relationship between the majority of the developed behavioral variables and the decision of whether adopting or unadopting IFRS by DCs. They also indicate through multivariate analysis that the selection of IFRS by DCs is primarily legitimized by institutional and social pressures (institutional isomorphism). Research limitations/implications It is essential to indicate that some limits might be assigned to the study. They are attached principally to the use of a dichotomous dependent variable which presents a restriction in a sense where the robust inequality at the level of the numbers of the countries of sub-samples can relatively weaken the findings. There are also few studies that jointly analyze the behavioral dimensions within a country and the adoption of IFRS. Institutional theory emanated from the research has proved useful in escaping this limit. Practical implications These empirical insights are of particular interest to local accounting standard setters of the selected countries since they can provide a better discernment of factors that can encourage the adoption of IFRS. Indeed, the research can be a reference for governments to better identify the economic, political and institutional obstacles that have an impact on behaviors which could compel countries to flee the adoption of IFRS. This paper will also be helpful for future research studying the links between human behavior and accounting in a general way. It should be noted that the results will be significant for future studies looking for real behavioral factors that drive a country to adopt an accounting framework. The studies will be able to use the empirical variables as a starting point and then they can extract new measures to identify the impact of behavior on decisions to adopt any standards. Originality/value At the present study, the authors strive to provide input to the literature by focusing on the determinants of the choice of an accounting practice in a DC reverberating to a new dimension which is the behavioral attribute.

scholarly journals Analisis pengaruh leverage terhadap nilai perusahaan dengan kepemilikan manajerial dan arus kas bebas sebagai variabel pemoderasi

2017 ◽  
Vol 22 (1) ◽  
Author(s):  
Linawaty Linawaty ◽  
Agustin Ekadjaja
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Secondary Data ◽  
Least Square Method ◽  
Free Cash Flow ◽  
Least Square ◽  
Ordinary Least Square ◽  
Management Ownership ◽  
The Impact

The purpose of this study is to examine whether or not the effect of leverage on firm value with management ownership and free cash flow as moderating variabel practice of manufacture firms listed in Indonesian Stock Exchange for period 2012-2014. Thirty five sample are selected by purposive sampling and used ordinary least square method to analysis. This study used secondary data such as firm financial statement that published during the observation year. Dependent variabel in this study is firm value practice of real estate firms listed in Indonesian Stock Exchange, while the independent variabels are leverage, management ownership, and free cash flow. The result shows that the impact of leverage is significant on firm value; Free Cash Flow is significant moderating leverage on firm, Management Ownership is not significant moderating leverage on firm value

scholarly journals Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation

2019 ◽  
Vol 12 (1) ◽  
pp. 71-93 ◽  
Author(s):  
Mohammad Rajon Meah ◽  
Nasir Uddin Chaudhory
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Least Square ◽  
The Other ◽  
Board Size ◽  
Ordinary Least Square ◽  
Female Directors ◽  
Director Ownership ◽  
The Impact

This article aims to investigate the impact of corporate governance through board size, female directors, family duality and director ownership on firm’s profitability in Bangladesh. It’s a quantitative study on 110 manufacturing firms listed in Dhaka Stock Exchange. Multivariate pooled Ordinary Least Square (OLS) regressions are applied on 512 sample-year observations from the year 2013 to 2017 to test the hypotheses in the study. On one side, the results reveal that larger board size and female directors on board are positively associated with firm’s profitability, which in turns helps to enhance firm’s profitability. On the other side, it is also found in the results that percentage of shares held by the directors and family duality are negatively related to firm’s profitability and thus reduces firm performance. The outcomes of this study advocate the policymakers to formulate a policy by addressing the percentage of shares held by the directors to be kept at a certain level.

scholarly journals The Impact of CSR on Corporate Value of Restaurant Businesses Using Triple Bottom Line Theory

2021 ◽  
Vol 13 (4) ◽  
pp. 2131
Author(s):  
Jimin Shim ◽  
Joonho Moon ◽  
Won Seok Lee ◽  
Namho Chung
Keyword(s):  
Panel Data Analysis ◽  
Triple Bottom Line ◽  
Least Square ◽  
Bottom Line ◽  
Theoretical Contribution ◽  
Ordinary Least Square ◽  
Line Theory ◽  
Restaurant Firms ◽  
Corporate Social ◽  
The Impact

The main goal of this study was to investigate the association between corporate social responsibility (CSR) and the value of restaurant firms by employing triple bottom line theory, a framework for a business model of sustainable development focusing on profit, environment, and people rather than just maximizing profit. Even though triple bottom line has been a common theoretical foundation in the CSR area, there is sparse literature on the theory in the context of CSR in the restaurant domain. Data regarding CSR dimensions and market-to-book value from 32 publicly traded restaurant firms in the US stock market for the period 1999–2012 were gathered, and panel data analysis methods of ordinary least square, one-way fixed effect, and time series feasible generalized least square were employed. The results revealed that economic CSR enhanced restaurant value, whereas environmental CSR diminished the value. The theoretical contribution of this study is that it will broaden the scope of triple bottom line theory. The results of the study will help restaurant administrators determine CSR policy.

The Determinants and Financial Statement Effects of IFRS Adoption in Nigeria

2016 ◽  
pp. 319-341
Author(s):  
J. O. Odia
Keyword(s):  
Stock Exchange ◽  
Earnings Quality ◽  
Least Square ◽  
Financial Statement ◽  
Annual Reports ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Ifrs Adoption ◽  
Operating Cash Flow ◽  
The Impact

The chapter examines the determinants and financial statement effect s of IFRS adoption in Nigeria. It also investigate into the impact of effect of the adoption of IFRS on accounting figures and ratios in the financial statements of 50 companies quoted in the Nigerian Stock Exchange. The determinants considered include firm's characteristics (firm size, operating cash flow, leverage, turnover, growth in turnover, profitability, liquidity and earnings quality) and corporate governance variables (board size, board independence and audit type). The data were obtained from the annual reports of companies listed in the Nigerian Stock Exchange between 2011 and 2013 and was analyzed using the ordinary least square (OLS) and logistic regression which were used to test for determinants of IFRS adoption while the independent t-test was used to examine the financial statement effects. With regard to the determinants, the empirical result indicates only profitability and earnings quality have significant but negative association with IFRS adoption. Moreover, IFRS adoption has significant effect on the return on equity.

Factors affecting investment decision-making in Pakistan stock exchange

2018 ◽  
Vol 05 (04) ◽  
pp. 1850033 ◽  
Author(s):  
Adeel Mumtaz ◽  
Tahir Saeed ◽  
M. Ramzan
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Risk Aversion ◽  
Stock Exchange ◽  
Investment Decision ◽  
Least Square ◽  
Individual Investors ◽  
Investment Decision Making ◽  
Tools And Techniques ◽  
The Impact

This study analyzes the impact of various factors like heuristic, risk aversion, financial tools and techniques, firm’s corporate governance, and day-to-day experience on the investor’s decision-making. The sample consisted of 701 individual investors trading in the Pakistan Stock Exchange. The Ordinary Least Square (OLS) is used for the estimation of research models. The findings revealed that heuristics, risk aversion, financial tools and techniques have a significant positive effect on the investment decisions of investors. The day-to-day experience and corporate governance (CG) play an important role in investment decision-making of the financial sector in Pakistan. This study will contribute to creating awareness in a diversity of investors for investing in the equity market and increases the investors’ confidence.

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