scholarly journals Would Overconfident CEOs Engage More in Environment, Social, and Governance Investments? With a Focus on Female Representation on Boards

2021 ◽  
Vol 13 (6) ◽  
pp. 3373
Author(s):  
Jaehong Lee ◽  
Eunsoo Kim
Keyword(s):  
Firm Value ◽  
Female Leadership ◽  
Corporate Value ◽  
Female Representation ◽  
Negative Effects ◽  
Upper Echelon ◽  
Board Representation ◽  
Managerial Overconfidence ◽  
The Relationship

This study examines the relationship between CEO overconfidence, environment, social, and governance investments, and firm value. Drawing on insights from upper echelon and agency theory, greater female representation on boards is expected to act as an independent monitoring mechanism to control and reconcile CEO overconfidence which leads to enhancement of corporate value induced by environment, social, and governance investments. Empirical evidence in this study finds that, on average, overconfident managers tend to engage in ESG investments in South Korea. Furthermore, in firms with high environment, social, and governance investments, the negative association between CEO overconfidence and firm value is mitigated, showing that environment, social, and governance investments are effective moderators in controlling and constraining managerial overconfidence. Finally, we find that the joint impact of CEO overconfidence and environment, social, and governance investments on corporate value is distinctive in firms with female board representation. Taken together, we find that negative effects associated with CEO overconfidence can be alleviated by the role of female leadership that links corporate environment, social, and governance investments to firm value.

scholarly journals The role of ISR disclosure as moderator the relationship between profitability and leverage towards corporate value

2019 ◽  
Vol 1 (2) ◽  
pp. 58-66
Author(s):  
Reni Susanti ◽  
Imanda Firmantyas Putri Pertiwi
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Firm Value ◽  
Quantitative Research ◽  
Sampling Method ◽  
Secondary Data ◽  
Corporate Value ◽  
Purposive Sampling ◽  
The Relationship

The purpose of this research is to find out the role of ISR disclosure as a moderator of the relationship between profitability and leverage on firm value in companies listed in JII for the 2014-2018 period. This research uses quantitative research using Moderated Regression Analysis (MRA). This study uses secondary data in the form of panel data on companies registered in JII for the 2014-2018 period. The populations in this study are all companies registered in JII during the 2014-2018 period. The sampling method is carried out by purposive sampling by using several criteria to obtain 15 companies used as research samples. The results of this study indicate that profitability and leverage affect the value of the company. The results of the Moderated Regression Analysis (MRA) analysis show that disclosure of the ISR is able to moderate the relationship between profitability and firm value but towards the negative. However, ISR disclosure is not able to moderate the relationship between leverage and firm value.

scholarly journals Institutional quality and the capital structure of microfinance institutions: the moderating role of board gender diversity

2021 ◽  
pp. 1-21
Author(s):  
Michael Adusei ◽  
Beatrice Sarpong-Danquah
Keyword(s):  
Capital Structure ◽  
Institutional Environment ◽  
Gender Diversity ◽  
Institutional Quality ◽  
Microfinance Institutions ◽  
Female Representation ◽  
Long Run ◽  
Board Gender Diversity ◽  
The Relationship

Abstract We test the effect of institutional quality on capital structure in the microfinance setting. In doing this, we rely on data from 532 microfinance institutions (MFIs) located in 73 countries dotted across the six microfinance regions in the world. We observe that institutional quality exhibits a robust negative and statistically significant relationship with capital structure in both the short and long run, implying that MFIs in countries with a better institutional environment are less likely to utilize more debt. Our moderation analysis furnishes us with evidence that the presence of women on the board of an MFI significantly moderates the relationship between institutional quality and its capital structure. We show that in the presence of more female representation on the boards of MFIs, the tendency of MFIs using less debt is higher.

scholarly journals Capital Structure-Firm Value Nexus: Moderating Role of Profitability

2020 ◽  
Vol 11 (2) ◽  
pp. 375-386
Author(s):  
Hamed Ahmad Almahadin ◽  
Yazan Salameh Oroud
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Ample Evidence ◽  
Functional Models ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

This study aims to investigate the moderating role of profitability in the relationship between capital structure and firm value in Jordan, as an example of an emerging economy. For this purpose, two functional models were formulated to capture the direct relationship as well as the interaction impact of capital structure on firm value. The robust empirical findings of panel data analysis provide strong evidence of an adverse relationship between capital structure and firm value. The findings confirm that the impact of capital structure appears to be complicated in nature and difficult to examine without controlling for the interaction of profitability as one of the major determinants. Therefore, studying the interaction effect provides ample evidence and enhances the understanding of the link between firm value and capital structure. The empirical results of the study may provide important insights and policy implications to decision-makers.

scholarly journals PROFITABLITY AND LIQUIDITY ON CORPORATE VALUE THROUGH DIVIDEND POLICY AS INTERVENING VARIABEL: EMPIRICAL STUDY ON ISLAMIC CAPITAL MARKET

2020 ◽  
pp. 249
Author(s):  
Sutrisno Sutrisno ◽  
Bagus Panuntun
Keyword(s):  
Regression Analysis ◽  
Capital Market ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Corporate Value ◽  
Return On Assets ◽  
Current Ratio ◽  
Observation Period

The purpose of this study is to examine the effect of profitability and liquidity on dividend policy and firm value. It also examines the role of dividend policy as an intervening variable between profitability and liquidity on firm value. Firm value is measured by Tobin's Q, dividend policy is measured by dividend payout ratio (DPR), profitability is measured by return on assets (ROA) and liquidity is measured by current ratio (CR). The population of this study is companies registered in List of Sharia Securities consisting of more than 300 companies. Samples were taken as many as 100 companies with a purposive sampling method. The observation period is 3 years (2016-2018). To test hypotheses using multiple regression analysis. The result shows that profitability is significant and positively effect on dividend policy, while liquidity does not affect on dividend policy. Profitability and dividend policy have a positive and significant effect on firm value, while liquidity has no effect on firm value. Another result of dividend policy is able to be as an intervening effect on profitability of firm value but not as an intervening liquidity relationship to firm value.

scholarly journals KETERKAITAN MANAGERIAL OWNERSHIP DAN LEVERAGE TERHADAP NILAI PERUSAHAAN: DALAM KONTEK HUBUNGAN KEAGENAN PERUSAHAAN DI INDONESIA

2021 ◽  
Vol 5 (1) ◽  
pp. 160
Author(s):  
Margarita Ekadjaja ◽  
Rorlen Rorlen ◽  
Fanny Andriani Setiawan ◽  
Kartika Nuringsih
Keyword(s):  
Decision Making ◽  
Firm Value ◽  
Agency Costs ◽  
Least Square ◽  
Managerial Ownership ◽  
Corporate Value ◽  
Manufacturing Companies ◽  
Positive Interaction ◽  
Two Stage ◽  
The Relationship

Manajemen dan nilai perusahaan memiliki keterkaitan yang tidak dapat dipisahkan.  Dimana manajemen perusahaan merupakan penggerak roda perusahaan dan berorientasi pada nilai perusahaan. Peran seorang manajer adalah memaksimalkan kekayaan bagi pemegang saham.  Namun, manajer yang tidak memiliki kepemilikan saham yang signifikan di perusahaan dapat memilih untuk memaksimalkan keuntungan bersih mereka sendiri dengan mengorbankan pemilik perusahaan. Akibatnya, pemilik terpaksa mengeluarkan biaya agensi untuk memastikan bahwa manajemen perusahaan bertindak dengan cara yang tepat. Cara untuk mengurangi biaya agensi adalah memaksa perusahaan untuk meningkatkan hutang. Tujuan penelitian adalah  menguji hubungan simultan pertukaran antara ownership, leverage, dan nilai perusahaan sehubungan dengan keagenan pada perusahaan manufaktur di Indonesia dari tahun 2012-2018. Penelitian ini menambah pemahaman mengenai keterkaitan antara ownership dengan leverage, dan nilai perusahaan. Analisis data untuk argumen tentang keterkaitan simultan antara  ownership, leverage, dan nilai perusahaan melalui data panel regresi berganda 2 SLS (Two Stage Least Square). Bidang penelitian ini diperluas dengan mempertimbangkan model empiris di mana ownership dan leverage masing-masing diperlakukan sebagai variabel endogen atau ditentukan bersama.  Dalam metode 2 SLS ada 2 kali variabel yang diobservasi secara simultan untuk menghindari bayes sehingga variabel tersebut tidak bias, di mana variabel managerial ownership dan Leverage merupakan determinan non linier nilai perusahaan sebagai bagian integral dari pengambilan keputusan perusahaan dalam kerangka keagenan.  Persamaan Regresi hasil uji 2SLS memunjukkan keterkaitan nilai perusahaan dengan managerial ownership dan leverage. Hasil menunjukkan interaksi positif  tidak signifikan antara managerial ownerhip dengan nilai perusahaan, interaksi positif signifikan antara nilai perusahaan dengan leverage, dan interaksi yang negatif signifkan antara managerial ownership dengan leverage. Management and corporate value have an inseparable relationship. Where the company management is the driving force of the company and oriented to corporate values. The role of a manager is to maximize wealth of shareholders. However, managers who do not have a significant share in the company may choose to maximize their own net profits at the expense of the company owners. As a result, the owners are forced to incur agency costs to ensure that company management acts in an appropriate manner. The way to reduce agency costs is to force the company to increase debt. The research objective is to examine the exchange simultaneous relationship between ownership, leverage, and corporate value with respect to agency in manufacturing companies in Indonesia from 2012-2018. This study adds to the understanding of the relationship between ownership and leverage, and corporate value. Data analysis for arguments about the simultaneous relationship between ownership, leverage, and firm value through 2 SLS (Two Stage Least Square) multiple regression panel data. This field of research is extended by considering empirical models in which ownership and leverage are treated as endogenous or co-determined variables, respectively. Ownership and Leverage as an integral part of corporate decision making within an agency framework, which in turn will affect the value of the company. In the SLS 2 method, there are 2 variables that are observed simultaneously to avoid bayes so that the variable is not biased, in which the managerial ownership and leverage variables are nonlinear determinant corporate value as an integral part of corporate decision making within the agency framework, which in turn will affect firm value. The 2SLS regression equation results show the relationship between firm value and managerial ownership and leverage. The results prove that there is a positive interaction between managerial ownership between firm value, a significant positive interaction between firm value and leverage, and a significant negative interaction between managerial ownership and leverage.

scholarly journals Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Corporate Social Responsibility sebagai Variabel Moderating

2020 ◽  
Vol 7 (4) ◽  
Author(s):  
Senja Nuansari
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Sampling Method ◽  
Stock Exchange ◽  
Target Population ◽  
Corporate Value ◽  
Main Method ◽  
Corporate Social ◽  
The Relationship

AbstractThe role of Corporate Social Responsibility (CSR) as a moderating variable in the effect of probability, leverage, and size of the company, on the company values listed on the Stock Exchange from 2015 through 2018 is examined in this study. The target population consists of 96 companies and 51 of them are considered as the sample according to a pool sampling method. Moderate Regression Analysis (MRA) is considered as the main method to identify and describe the relationship between the variables. These results reveal that the size of the company’s profitability and the size of a firm have a positive and significant impact on corporate value. On the other hand, leverage was found to have an insignificant effect on corporate value. Besides, CSR show to moderate the effect of probability, leverage, and size of the firm, on the value of the company.Keywords: CSR, Corporate Value, Profitability, Leverage, and size of a firm  AbstrakPeran tanggung jawab sosial perusahaan (CSR) sebagai variabel moderat memberikan efek probabilitas, leverage, dan ukuran pada nilai perusahaan yang tercantum di BEI periode 2015-2018 dalam penelitian ini. Dari populasi 96 perusahaan dan dipilih 51 sebagai sampel sesuai dengan metode pool sampling. Moderat regresi analisis (MRA) dianggap sebagai metode utama untuk mengidentifikasi dan menggambarkan hubungan antara variabel. Hasil ini mengungkapkan bahwa profitabilitas dan ukuran perusahaan memiliki dampak positif dan signifikan pada nilai perusahaan. Di sisi lain leverage ditemukan memiliki efek yang tidak signifikan dari nilai perusahaan. Selain itu, CSR menunjukkan dapat memoderasi probabilitas, leverage dan ukuran perusahaan, pada nilai perusahaan.Kata Kunci: CSR, nilai perusahaan, profitabilitas, leverage, ukuran perusahaan

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

scholarly journals Corruption and satisfaction with democracy: the conditional role of electoral disproportionality and ballot control

2018 ◽  
Vol 10 (3) ◽  
pp. 393-416 ◽  
Author(s):  
Alessandro Pellegata ◽  
Vincenzo Memoli
Keyword(s):  
Electoral Systems ◽  
Aggregate Level ◽  
Negative Effects ◽  
Empirical Results ◽  
Satisfaction With Democracy ◽  
Level Data ◽  
The Impact ◽  
The Relationship ◽  
Different Levels

Existing literature has analysed the relationship between electoral systems and either corruption or satisfaction with democracy (SWD) focussing on the traditional distinction between majoritarian and proportional systems. This paper, instead, investigates if and how specific aspects of electoral systems moderate the negative effects of corruption perceptions on SWD. We argue that two mechanisms act simultaneously but at different levels. The first mechanism is the relationship between voters and the national government, while the second links single representatives to their constituents. We advance conditional hypotheses that postulate an attenuating effect of disproportionality and a reinforcing impact of personal vote. Empirical results from 35 elections in 33 democracies, using both individual and aggregate-level data, confirm the research hypotheses. More disproportional electoral systems weaken the impact of citizens’ perceived corruption on their democratic satisfaction, while this is strengthened by systems in which the ballot control is mostly in the hand of the voters.

scholarly journals The impact of related party transactions on firm value

2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy
Keyword(s):  
Firm Value ◽  
Design Methodology ◽  
Emerging Market ◽  
Content Type ◽  
Related Party Transactions ◽  
Intermediary Role ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

Workplace resources and employee resilience: the role of regulatory profiles

2017 ◽  
Vol 22 (4) ◽  
pp. 419-435 ◽  
Author(s):  
Joana Kuntz ◽  
Philippa Connell ◽  
Katharina Näswall
Keyword(s):  
Regulatory Focus ◽  
Online Survey ◽  
Negative Effects ◽  
Prevention Focus ◽  
Content Type ◽  
Joint Effects ◽  
Main Effects ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the independent and joint effects of regulatory focus (promotion and prevention) on the relationship between workplace resources (support and feedback) and employee resilience. It proposed that, at high levels of resource availability, a high promotion-high prevention profile would elicit the highest levels of employee resilience. Design/methodology/approach An online survey was completed by 162 white collar employees from four organisations. In addition to the main effects, two- and three-way interactions were examined to test hypotheses. Findings Promotion focus was positively associated with employee resilience, and though the relationship between prevention focus and resilience was non-significant, both regulatory foci buffered against the negative effects of low resources. Employees with high promotion-high prevention focus displayed the highest levels of resilience, especially at high levels of feedback. Conversely, the resilience of low promotion-low prevention individuals was susceptible to feedback availability. Practical implications Employee resilience development and demonstration are contingent not only on resources, but also on psychological processes, particularly regulatory focus. Organisations will develop resilience to the extent that they provide workplace resources, and, importantly, stimulate both promotion and prevention perspectives on resource management. Originality/value This study extends the research on regulatory focus theory by testing the joint effects of promotion and prevention foci on workplace resources, and the relationship between regulatory foci and employee resilience.

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