scholarly journals Investor Sentiment, Innovation Investment and Cash Dividend

2019 ◽  
Vol 11 (7) ◽  
pp. 97
Author(s):  
Xiaoyang Xu ◽  
Adubofour Isaac ◽  
Lizhong Hao ◽  
Dandan Wang
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Critical Role ◽  
Investor Sentiment ◽  
Positive Association ◽  
Cash Dividend ◽  
Listed Firms ◽  
Corporate Innovation ◽  
Negative Sentiment ◽  
The Impact

Investor sentiment plays a critical role in corporate innovation investment. Firms resort to innovation in their attempts to satisfying the demands of their investors. We argue empirically in our study that investor sentiment has impact on firms’ innovation decisions. We also argue that, strong negative sentiment has higher propensity to foster corporate innovation investment. We analyzed a nine- year panel data ranging from 2009-2017, which consisted of 3,558 Chinese listed firms. A verification of the impact of dividend policy on firms’ innovation investment was conducted. We found that, favorable dividend policy would trigger corporate innovation investment. We also found a statistically significant relationship between innovation investment and firm performance. Our findings showed a positive association between corporate innovation investment and firm performance. We also conducted a series of robustness checks on our empirical models and then discussed the contribution of our study, theoretically and practically.

The Impact of Business Strategy on Firm Performance of Listed Firms in Vietnam

2020 ◽  
Vol 36 (5E) ◽  
Author(s):  
Khuong Nguyen Vinh ◽  
Le Phan Minh Thu ◽  
Luong Bao Han ◽  
Nguyen Thuy Minh Dan ◽  
Pham Truc Mai ◽  
...  
Keyword(s):  
Firm Performance ◽  
Business Strategy ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Positive Association ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Impact ◽  
Cost Leadership Strategy

This study was conducted to contribute empirical evidence of the impact of Michael Porter’s business strategy on performance in Vietnamese listed firms. Based on data from 620 firms on the Vietnamese stock exchange from 2010 to 2019, we use a quantitative research method to demonstrate the positive association between performance and differentiation strategy. We found cost leadership strategy has no meaning. Based on the results, we make implications for listed firms and regulatory agencies which will contribute to improving firm performance.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Payout Policy ◽  
Board Composition ◽  
Dividend Payout ◽  
Content Type ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

scholarly journals Motivating Information Technology Professionals: The case of New Zealand

2017 ◽  
Vol 21 ◽  
Author(s):  
Shoaib Ahmed ◽  
Nazim Taskin ◽  
David J. Pauleen ◽  
Jane Parker
Keyword(s):  
Job Satisfaction ◽  
New Zealand ◽  
Turnover Intention ◽  
Professional Growth ◽  
Critical Role ◽  
Positive Association ◽  
It Professionals ◽  
Online Questionnaire ◽  
Significant Positive Association ◽  
The Impact

IT professionals play a critical role in organizations. Research indicates that they may be unique in their attitudes toward motivation and job satisfaction. In New Zealand, a shortage of skilled professionals may contribute to or impact on motivation. Using a modified model of Herzberg’s two-factor theory by Smerek and Peterson (2007), this research seeks to answer the question: what motivates New Zealand IT professionals? In response, an online questionnaire was distributed to a population of New Zealand IT professionals and the data analysed using Partial Least Squares to understand the relationship between the various dimensions of job satisfaction, the impact of personal and job characteristics, and turnover intention. The findings show that the New Zealand IT professional is primarily motivated by the nature of his or her work, followed by perceptions of responsibility, and how supervisors encourage an environment for such. Satisfaction with salary is a predictor to a lesser degree. Perhaps somewhat surprisingly, professional growth opportunities, career advancement, and recognition do not have a statistically-significant positive association with motivation. We conclude that, to motivate their IT workforce, organizations should: 1) focus on the nature of the jobs that IT professionals undertake; 2) train supervisors to provide an empowering environment; 3) offer competitive salaries to retain top talent; 4) not hesitate to employ IT professionals born outside New Zealand; and 5) take account of the singularities of the New Zealand labour market in seeking to attract, recruit and retain IT professionals. Implications for policy, practice and theory are discussed.

scholarly journals An examination of linkages between corporate social responsibility and firm performance: Evidence from Moroccan listed firms

2021 ◽  
pp. 636-646
Author(s):  
Souhaila Kammoun ◽  
Youssra Ben Romdhane ◽  
Sahar Loukil ◽  
Abdelmajid Ibenrissoul
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Positive Association ◽  
Social Enterprises ◽  
Listed Firms ◽  
Managerial Implications ◽  
Using Data ◽  
Set Up ◽  
Corporate Social

This article analyzes the complexity of the linkages between corporate social responsibility (CSR) and firm performance in Morocco and to decompose this complexity through a bidirectional sense of causality. Using data surveyed from 74 Moroccan listed firms, we conduct an econometric modeling to measure this relationship bilaterally and to investigate the underlying factors behind this association. The empirical study proves the existence of a positive association between CSR and firm performance in both directions in the Moroccan context and suggests that the more social enterprises are, the more they achieve better financial results. The mutual linkage between social and financial aspects allows us to draw some managerial implications and set up further research directions.

scholarly journals Ownership structure and voluntary disclosure in corporate annual reports of Malaysian listed firms

2011 ◽  
Vol 8 (2) ◽  
pp. 296-312 ◽  
Author(s):  
Poh-Ling Ho ◽  
Gregory Tower
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Positive Association ◽  
Institutional Ownership ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Policy Makers ◽  
Listed Firms ◽  
Ownership Structures ◽  
The Impact

This paper examines the impact of ownership structure on the voluntary disclosure in the annual reports of Malaysian listed firms. The result shows that there is an increase in the extent of voluntary disclosure in Malaysian listed firms over the eleven-year period from 1996 to 2006. Ownership concentration consistently shows positive association with voluntary disclosure. Firms with higher foreign and institutional ownership have a significantly positive association with voluntary disclosure levels while firms with family ownership exhibit lower voluntary disclosure. Consistent with agency theory, different ownership structures have varied monitoring effects on agency costs and clearly influence firm’s disclosure practices. The findings provide insights to policy makers and regulators in their desire to increase transparency and accountability amidst the continual enhancement of corporate governance. The findings provide evidence that optimized ownership structure in any jurisdiction should be considered in any regulatory process that seeks to improve transparency.

scholarly journals The structure of corporate ownership and firm performance: Sri Lankan evidence

2013 ◽  
Vol 11 (1) ◽  
pp. 723-734 ◽  
Author(s):  
Athula Manawaduge ◽  
Anura De Zoysa
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Ownership Structure ◽  
Emerging Market ◽  
Ownership Concentration ◽  
Sri Lankan ◽  
Accounting Performance ◽  
Listed Firms ◽  
Strong Positive Relationship ◽  
The Impact

This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.

scholarly journals The Impact of Dividend Policy on the Shareholders Value of Listed Firms in the Nigerian Petroleum Marketing Industry

2019 ◽  
Vol 8 (2S9) ◽  
pp. 902-905
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Market Price ◽  
Study Data ◽  
Annual Reports ◽  
Current Income ◽  
Listed Firms ◽  
Secondary Sources ◽  
Marketing Firms ◽  
The Impact

Dividend policy is directed towards establishing the proportion of current income that should be retained in the firm and the proportion that should be distributed among its shareholders. This study, therefore, assessed the impact of dividend policy on the value of listed firms in the Nigerian petroleum marketing industry. six firms, out of eight that are quoted on the Nigerian Stock Exchange (NSE) were selected as sample for the study. Data were collected from secondary sources. Annual reports and accounts of the selected firms, daily official lists and facts books of the NSE for the period of 2008-2017 form the source of the data. egression was used in analyzing the data. The findings revealed that payment of dividend by petroleum marketing firms in Nigeria positively influence the market price of their shares. Based on these findings, the study concluded that dividend policy of petroleum marketing firms in Nigeria affects the value of the firms. Based on this conclusion, the study recommends that management need to identify the shareholder’s interest in setting up a dividend policy that would balance their needs and retention for recapitalization to maximize value of the firms.

scholarly journals The Effect of Board Diversity on Firm Performance: Evidence from Chinese L isted Companies

2020 ◽  
Vol 13 (1) ◽  
pp. 9-33
Author(s):  
Waqas Bin Khidmat ◽  
Muhammad Ayub Khan ◽  
Hashmat Ullah
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Gender Diversity ◽  
Diversity Education ◽  
Method Of Moment ◽  
Fixed Effects Model ◽  
Foreign National ◽  
Board Diversity ◽  
Listed Firms ◽  
The Impact

Drawing on the upper echelon’s theory and the resource-based theory, the purpose of the study is to examine the impact of board diversity on the Chinese A-listed firm’s performance. The data were collected from A-listed companies registered in Shanghai SSE 180 and the Shenzhen 100 from the period 2007 to 2016. Since some of the companies got listed after 2007, our data is unbalanced. Both fixed effects model and a more robust dynamic panel generalised method of moment estimation are applied to cater the endogeneity problem. After controlling for several firms and board characteristics, we found gender diversity, education diversity and foreign national diversity measured through Blau index have a positive and significant effect on the Chinese A-listed firm performance for both the accounting and market measures. The age diversity and independence diversity seem not to be an essential determinant of firm performance in Chinese A-listed firms. The results supported the efficient monitoring hypothesis and managerial networking theory, which suggests that the director’s diversity reduces the managerial entrenchment on the one hand, while, through networking, increases the resources of the firms on the other side.

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