scholarly journals Does Firm Life Cycle Impact Corporate Investment Efficiency?

2020 ◽  
Vol 13 (1) ◽  
pp. 197
Author(s):  
Bilal Ahmed ◽  
Minhas Akbar ◽  
Tanazza Sabahat ◽  
Saqib Ali ◽  
Ammar Hussain ◽  
...  
Keyword(s):  
Life Cycle ◽  
Fixed Effects ◽  
Corporate Investment ◽  
Ordinary Least Squares ◽  
Investment Efficiency ◽  
Investment Policies ◽  
Firm Life Cycle ◽  
Life Cycle Stages ◽  
Growth Firms

Corporate investment efficiency (CIE) is an imperative factor influencing the smooth functioning and financial sustainability of an enterprise. The role of a firm life cycle on risk and performance fundamentals has been extensively explored in the literature. However, it remains unclear as to whether the life cycle stages of a firm have any impact on corporate investment efficiency. This paper investigates the role of firm life cycle stages (FLCS) in determining the investment efficiency of 351 Pakistani non-financial listed firms over the course of 12 years (2005–2016). It used panel data fixed effects and ordinary least squares (OLS) techniques to empirically examine the proposed relationship. By employing Dickinson’s FLCS measure, we found that CIE was lower during the introduction and decline stages and higher at the growth and maturity stages of a firm’s life cycle. Moreover, the results of regression analysis revealed that mature firms enjoyed the highest level of investment efficiency followed by the growth firms. Overall, CIE exhibited an inverted U-shaped trend across FLCS. In addition, the findings corroborated the idea that the sample firms could not sustain their investment efficiency when they moved along different stages of the life cycle. Thus, policymakers are suggested to customize their investment policies for each stage of FLC to attain sustainable financial performance throughout the life of a firm.

Islamic banking and corporate investment efficiency: empirical evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Ahdi Noomen Ajmi
Keyword(s):  
Empirical Model ◽  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Investment Efficiency ◽  
Islamic Banks ◽  
Agency Conflicts ◽  
Content Type ◽  
Listed Firms ◽  
Lower Effect

PurposeThe purpose of this paper is to examine whether and how Islamic banks' financing affects corporate investment efficiency.Design/methodology/approachTo achieve the research purpose, an empirical model was constructed to describe the relationship between Islamic banks' financing and corporate investment efficiency. The empirical model was tested through generalized method of moments (GMM) estimation technique using a panel data of 163 Malaysian listed firms for the period 2007–2017.FindingsThis study provides evidence that Islamic banks' financing plays an important role in enhancing investment efficiency and that this positive effect comes mainly from non-PLS contracts. Moreover, the results show that the effect of Islamic banks' financing in preventing suboptimal investments is stronger in the financial crisis period. The results also reveal that the contribution of Islamic banks' financing in reducing suboptimal investments is more prominent when firms face over-investment problems.Research limitations/implicationsThis research contributes to the debate on the financial implications of Islamic banks' financing modes by exploring their effect on corporate investment efficiency.Practical implicationsFrom a managerial perspective, the research findings are beneficial to Islamic bank managers to the extent that they highlight the role of Islamic financial contracts in improving corporate investment efficiency. In addition, the lower effect of PLS contracts on investment efficiency implies that policymakers in Malaysia should multiply their efforts to further expand the PLS financing.Originality/valueThis paper offers some insights on the role of Islamic banks' financing in mitigating agency conflicts and reducing asymmetric information problems. It is the first attempt focusing on the role of Islamic financing in fostering corporate investment decisions.

scholarly journals A study of the impact of information disclosure quality on the efficiency of corporate investment—Based on civil engineering listed companies

2020 ◽  
Vol 198 ◽  
pp. 03032
Author(s):  
Liying Zhang
Keyword(s):  
Life Cycle ◽  
Civil Engineering ◽  
Listed Companies ◽  
Investment Efficiency ◽  
Disclosure Quality ◽  
High Quality ◽  
Life Cycle Stages ◽  
Quality Disclosure ◽  
The Impact

Most of the existing studies on the impact of disclosure quality of listed companies on the investment efficiency of enterprises are based on the static level, and the article investigates the evolution of disclosure quality on the investment efficiency of enterprises from the dynamic level by dividing the life cycle of enterprises. Taking the data of Shenzhen civil engineering companies from 2013-2017 as the research sample, it uses multiple regression analysis to empirically test the impact of disclosure quality of listed companies on the investment efficiency of enterprises at different life cycle stages. The results show that when no distinction is made between life cycle stages, high quality disclosure can significantly inhibit the inefficient investment behavior of firms; in the growth and maturity samples, high quality disclosure can significantly inhibit underinvestment and overinvestment; in the recessionary samples, high quality disclosure can significantly inhibit underinvestment and has no significant effect on overinvestment.

scholarly journals Parvatrema duboisi (Digenea: Gymnophallidae) Life Cycle Stages in Manila Clams, Ruditapes philippinarum, from Aphae-do (Island), Shinan-gun, Korea

2021 ◽  
Vol 59 (1) ◽  
pp. 83-88
Author(s):  
Bong-Kwang Jung ◽  
Taehee Chang ◽  
Hyejoo Shin ◽  
Seungwan Ryoo ◽  
Sooji Hong ◽  
...  
Keyword(s):  
Life Cycle ◽  
Post Infection ◽  
Ruditapes Philippinarum ◽  
Manila Clam ◽  
Long Tail ◽  
5.8S Rdna ◽  
Rdna Its2 ◽  
Life Cycle Stages ◽  
Second Intermediate Host

Life cycle stages, including daughter sporocysts, cercariae, and metacercariae, of Parvatrema duboisi (Dollfus, 1923) Bartoli, 1974 (Digenea: Gymnophallidae) have been found in the Manila clam Ruditapes philippinarum from Aphaedo (Island), Shinan-gun, Jeollanam-do, Korea. The daughter sporocysts were elongated sac-like and 307-570 (av. 395) μm long and 101-213 (av. 157) μm wide. Most of the daughter sporocysts contained 15-20 furcocercous cercariae each. The cercariae measured 112-146 (av. 134) μm in total length and 35-46 (av. 40) μm in width, with 69-92 (av. 85) μm long body and 39-54 (av. 49) μm long tail. The metacercariae were 210-250 (av. 231) μm in length and 170-195 (av. 185) μm in width, and characterized by having a large oral sucker, genital pore some distance anterior to the ventral sucker, no ventral pit, and 1 compact or slightly lobed vitellarium, strongly suggesting P. duboisi. The metacercariae were experimentally infected to ICR mice, and adults were recovered at day 7 post-infection. The adult flukes were morphologically similar to the metacercariae except in the presence of up to 20 eggs in the uterus. The daughter sporocysts and metacercariae were molecularly (ITS1-5.8S rDNA-ITS2) analyzed to confirm the species, and the results showed 99.8-99.9% identity with P. duboisi reported from Kyushu, Japan and Gochang, Korea. These results confirmed the presence of various life cycle stages of P. duboisi in the Manila clam, R. philippinarum, playing the role of the first as well as the second intermediate host, on Aphae-do (Island), Shinan-gun, Korea.

Wage Dispersion and Team Performance: The Moderation Role of Club Size

2021 ◽  
pp. 152700252110677
Author(s):  
Thadeu Gasparetto ◽  
Angel Barajas
Keyword(s):  
Team Performance ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Wage Dispersion ◽  
Financial Strength ◽  
Football Clubs ◽  
And Performance ◽  
The Impact ◽  
Robustness Check

Previous research on professional football offer conflicting results regarding the impact of wage dispersion on team performance. However, the existing intra-league heterogeneity among clubs is overlooked and could be the reason for the diverging outcomes. The aim of this paper is to reanalyze this relationship having the clubs’ size as moderator. Payroll – which captures the financial strength – is used as proxy of club size. Ordinary Least Squares regressions with season and league fixed effects are employed. Dispersion is measured by three indexes for robustness check. The outputs confirm the quadratic relationship between wage dispersion and performance, but adding that identical levels of dispersion have different impact on football clubs according to their financial strength.

Is the performance improvement effect of social capital contingent on life cycle stages of professional athletes? Evidence from motorboat racing in Japan

2017 ◽  
Vol 44 (12) ◽  
pp. 2466-2485
Author(s):  
Nobuya Fukugawa
Keyword(s):  
Social Capital ◽  
Life Cycle ◽  
Fixed Effects ◽  
Negative Binomial ◽  
Professional Athletes ◽  
Physical Factors ◽  
Negative Binomial Regression Model ◽  
Content Type ◽  
Bridging Social Capital ◽  
Life Cycle Stages

Purpose The purpose of this paper is to examine whether bonding and bridging social capital of professional athletes affect their performance and whether the impacts vary according to their life cycle stages. Design/methodology/approach This study establishes an unbalanced panel of motorboat racers in Japan, and estimates a fixed-effects negative binomial regression model to analyze determining factors in the number of wins in a final, focusing on not only physical factors but also social capital. Findings Bridging social capital, measured by the number of racers in the same regional division, has no impact on performance. Bonding social capital, measured by the number of racers who graduated the training institute in the same period, has positive impacts on performance. This positive effect is more salient among racers who are less experienced, and thus need to extract benefits from social capital to augment limited internal resources. Originality/value This study adds statistical evidence to previous literature on the contingency theory that different types of social capital have different impacts on performance under different environments.

scholarly journals Independent directors and corporate investment: evidence from an emerging market

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quoc Trung Tran
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Firm Investment ◽  
Full Sample ◽  
Content Type ◽  
Research Findings

Purpose The purpose of this paper is to examine whether independent directors reduce corporate overinvestment and improve investment efficiency in an emerging market. Design/methodology/approach First, the author developed a research model in which corporate investment is a function of Tobin’s Q, the proportion of independent directors in the board and an interaction between them. Second, the author divided the full sample into groups of firms with a low- and high-financial constraint to compare the effects of independent directors between financially unconstrained and constrained firms. Findings With a full sample of 1,281 observations collected from 193 firms listed in Ho Chi Minh Stock Exchange during the period from 2009 to 2017, the author find that the proportion of independent directors is negatively related to firm investment but its interactive term with Tobin’s Q is positively related to corporate investment. These findings imply that independent directors can help firms reduce overinvestment and improve investment efficiency. Moreover, the research findings indicate that these effects of independent directors are stronger for financially constrained firms. Originality/value The extant literature shows that independent directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been no research on the role of independent directors in corporate investment policy.

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