Investors consider both earnings and dividend information when analysing the performance of an entity (Koppeschaar Koppeschaar, Sturdy, Du Toit, Deysel, Rossouw, Van Wyk, Gaie-Booysen, Papageorgiou, Smith & Van der Merwe, 2015). The objective of the study was to determine whether the share price performance of the top 40 JSE listed companies depend more on BEPS or DPS. The study focused on the top 40 JSE listed firms as sample, while data were collected for the period 2012 to 2016. Information was gathered on EPS, DPS and share prices with aid of the INET BFA database. Collected data were analysed through application of SPSS, by measuring Pearson correlation coefficients and performing paired t-tests. Study limitations included that the sample size was limited to 40 observations, that a limited analytic period was used (2012-2016) and that the study relied on the accuracy of information provided by the INET BFA. Generalisation of research findings is therefore limited. Despite limitations, the study made a worthy contribution by indicating that investors of the top 40 JSE listed firms should rather rely on earnings measures (BEPS) than return measures (DPS) when making investment decisions, because it was statistically proven that BEPS delivers higher Pearson correlation coefficients than DPS when correlations modelling is performed for the selected analytic period.
We investigate whether Korean chaebol owner’s personal features affect corporate investment or not, for they have a unique governance system controlled by one powerful owner. With this governance, the impact of personal characteristics on major corporate decisions can be tested more clearly. We used the aggregate financial statement to measure chaebol’s financial performances in a more reasonable way as well. Our study shows a few noticeable results. Aggregate financial performances of chaebols are different from those of individual companies. Owner’s personal features affect corporate decision makings in Korean chaebols. Especially, chaebols under succession process invest less than others, preferring more conservative approaches for succession.
We target identifying the needs for the fulfillment of location factors of pop-up retailers being determined by their core motivations and retail sector affiliation. We undertake to do both, to qualify, and to quantify their needs to gain at end of the day a profound description of various pop-up retail patterns. Through the use of a mixed-methods approach containing qualitative research through conducting interviews and qualitative content analysis as well as quantitative fulfillment of location factors through data analysis of multiple location data sources like Open Street Map, we try to gain first indications towards a deeper understanding of pop-up location decisions as well as to validate our hypothesis of the existence of pop-up retail patterns. We were able to validate three retail patterns through our qualitative research. Furthermore, we saw differences reflecting the particular motivations of running the ephemeral retail project. Despite our small shown sample of quantitative data for St. Gallen, we figured out the first indications that store density is a suitable indicator to understand pop-up retailers’ locations’ decisions. Nevertheless, there is a need to continue research in both terms, more quantitative data like footfall and financial transactions (turnovers) as well as bigger, more representative samples. Within the undertaken literature review we saw a lack of research in gaining a deeper understanding of the nature of pop-up retail in terms of location needs and how location decisions are made. We present results that may deal as a foundation for upcoming research. Moreover, we contribute to the state of research in patterns of retail location choice through a data-driven approach, which presents reasonable insights into the field of location intelligence of temporary retail.
Creativity is crucial to the performance of R&D teams. Since the creative work, the team needs to connect and integrate the opinions of multiple employees the team’s relation is a crucial determinant of creative performance. The purpose of this study is to identify the effects of informal communication on organizational creativity. In this study, informal communication is divided into mentoring or coaching system and learning organization. An empirical analysis of this study found that team creativity requires informal communication. In addition, research has shown that positive effect of mentoring or coaching on creative performance was clearer when firm size was large. Finally, mentoring or coaching has a positive impact on creative performance as the employee ability is higher. The results of this study provide implications for strategies to enhance organizational creativity by demonstrating that informal communication has a significant relationship with organizational creativity.
This paper provides evidence that the overcapitalized banks are much more sensitive to fundamental factors rather than to the regulatory requirements such the Basle’s Accord requirements, which raises the question of whether Basel’s limits are sufficient to minimize financial crises. Also, keeping buffers against falling below the minimum requirements appear to be of second order importance. Three fundamental factors affect capital adequacy in Jordan; risk, return and activity. Risk indicators drive the capital adequacy ratios downward. Return on average assets (ROAA) has the biggest impact among all factors, banks fuel their capital internally following the pecking order theory, and they also raise capital whenever their activities (loan to asset ratio) improve. Return on average equity (ROAE) is a cost factor; banks avoid issuing capital whenever cost of common equity is high. This paper also provides evidence that systematically important banks hold less capital, a sign of moral hazard.
In light of the rapidly spreading COVID-19 virus, the FDA has suggested pooling of samples in order to reduce the cost of testing a large population. Under this approach, several samples are pooled, and the pooled samples are first tested. If the pool tests negative, then the lab would have successfully tested many samples while consuming only the resources needed for a single test. If the pooled sample tests positive, then each sample that comprised the pool is individually tested. In this context, an important question for people in the field is “Given a certain overall infection rate among the population, what is the optimum pool size so that we can minimize the overall number of tests for a given number of individual samples?” In this paper, we derive this number both empirically and analytically. We also address the related question “Given a certain pool size, what is the maximum infection rate for which we can still gain in terms of the number of tests?”
This study identifies the export promotion instruments that are applied by public export promotion organisations situated within the East African Community (EAC) countries to stimulate exports and encourage economic growth. The East African region is the fastest developing region in Africa. EAC member countries are, therefore, used as a case study. How export promotion instruments are bundled by export promotion organisations depends on the socioeconomic, political and trade environment of a country as well as the structure of the country’s export promotion agencies. By utilising primary and secondary data, public export promotion organisations of Burundi, Kenya, Rwanda, Tanzania and Uganda were studied. These general and country-specific instruments were identified through onsite interviews in the respective countries under investigation. The results suggest that the most important export promotion instruments applied include advertising, promotional events, advocacy and legal assistance. It also includes capacity building concerning packaging, pricing and quality requirements within foreign markets as well as assistance concerning planning and preparation for export market engagement. Foreign trade missions, trade fairs, expos, and additional services offered by trade offices and representatives abroad are also general export promotion instruments, as is the provision of information and export financing. Country-specific export promotion instruments identified during onsite interviews in the various countries include unique promotional events and product branding, use of cell phone WhatsApp groups and embassies as a channel for information, trade assistance and trade clinics. Our contribution to the field is that this study is foundational and represents the first comprehensive effort to write up these activities of the EPO’s to establish viable research in the EPOs in the East Africa Region.
During the COVID-19 Pandemic, there were changes in work patterns such as work from home. The impact of the change in work from home patterns needs to be of concern to the organization. Working conditions that are not conducive to overcoming these changes in work patterns can lead to deviance in employee behavior due to mental health. This study investigates the effect of working conditions on the quality of life of employees. The research method used a survey approach with non-parametric analysis techniques. It is testing using a sample of 201 employees of respondents with a simple random sampling technique in local governments that handle transportation problems in West Bandung regency. The results indicated a significant influence of the work environment on the quality of life of employees. This result indicates that the presence of a work environment that is less conducive has a significant impact on the quality of life of employees, as indicated by the presence of anxiety and depression. The research implication shows that it is necessary to minimize existing work-related mental health by managing an efficient work environment.
This paper analyzes the influence of corporate governance and corporate strategy on the performance of family owned or controlled firms listed on the Indonesia Stock Exchange. The Corporate Governance proxy is Family Ownership and Independent Commissioner, and Corporate Strategy proxies are Diversification and Compensation Strategy of Directors. This study uses a sample of 70 companies that are family owned or controlled companies listed on the Indonesia Stock Exchange (IDX) from 2014 to 2018. Data analysis was performed using multiple linear regression methods. The results of this study indicate that family ownership has a significant negative effect on company performance (ROE). While diversification and compensation strategy of directors have no effect, firm performance is measured by ROE.
Inter-organizational partnerships are an essential mechanism for corporations to access resources, particularly in emerging markets. This study is concerned with the steps relating to how multinational corporations in India create, develop, and evaluate their partnerships based on relationships. In the context of business-to-business partnerships, the researchers aim to (i) create a relational leadership process framework for how these relationships are built, and (ii) analyze if relational governance through relational leadership is complementary or rather a substitute to formal contracts in the context of such business-to-business partnerships. A case study-based research design is employed to explore relational leadership in business partnerships in India, thereby incorporating case studies based on interviews from nine internationally operating corporations. A process framework for relational leadership with six distinct steps on how to develop business partnerships in India was developed. Furthermore, the researchers found that the framework complements the relational governance processes supported by relational leadership and formal contracts when engaging in business partnerships in India. The study’s main aim was to contribute to the current theory in the emergent field of relational leadership. Practitioners responsible for partnership building among corporations can gain insights from the framework into the application of relational leadership. The results indicate that corporations can maintain long-term partnerships if specific relational governance mechanisms mainly supported by the application of relational leadership are in place.
Based on a large sample of directors, I find that directors’ external connections are positively associated with the level of their compensation, suggesting that directors are compensated for the value they bring to the firm through their external connections. This association holds after controlling for the various factors such as firm and CEO characteristics, board related governance characteristics, directors’ attributes such as experience and education, industry and year fixed effects, used in prior studies. I also find that the association between the components of external connections and compensation is different for different types of directors. Director Compensation
The consequences of missing targets can be found on a daily basis in many organizations. As such, targets and target setting in an extremely important topic to companies and one that should receive more attention. Although the vast amount of reasons for missing targets are difficult to study, the process of setting the target which includes budgeting has been proven to affect performance and achievement through goal setting theory (Locke & Latham, 2002). Thus, targets are an important element in almost every organization (Chenhall, 2003). We focus this review of literature exclusively in the relationship between target setting and firm performance and as such consolidate, organize, and synthesize past literature in this field and provide a clear direction for future research. We further identify two impactors found to affect firm and management performance but never researched as an impactor of the relationship between target setting and firm performance. Those impactors are Transparency of targets and length of management experience. In this paper, we fill the gaps identified above and inform the study of target setting in order to spark future research on this topic. We also identify the dimensions affecting the relationship between target setting and firm performance as well as the different measurement approaches in target setting literature.
In this paper, a linear programming model for optimizing the fleet size and mix for a rental car company is developed and solved. Rental car companies depend on their fleet of vehicles for generating the entirety of their income. Additionally, the investments required are typically very significant due to the high cost of vehicles. Consequently, the composition of the fleet could significantly affect the company’s profitability and sustainability in a volatile demand environment. Determining the optimal fleet size and mix has been the focus of research in particular in revenue and yield management and VRP streams. However, most models focused on cost minimization without taking into account the resale value of vehicles once retired from the fleet. This paper addresses the problem from a return maximization perspective while taking into account resale values of vehicles. Sensitivity analysis is carried out to gain further insight into the problem and enable the model to support the company’s management in refining the strategic plan.
Sustainable livestock farming is a hot issue worldwide. Last decade there is an intense transformation that affect all aspects of the sector like economic, social and environmental. This transformation has to deal with the increasing market globalization, the changes in Common Agriculture Policy and the new social awareness in environmental issues. The aim of this study is to profile and classify goat farms according to their performance using farm-level data that concerns economic, social and environmental sustainability. A combination of multivariate analysis techniques, such as Principal Component Analysis and Cluster Analysis were developed for the aggregation of synthetic indicators and for the creation of farm typologies. According to results, Greek goat farming achieves a low performance in almost all pillars of sustainability, but if the sector adopt sustainable practices there is the margin to become more elastic and competitive.
This study investigates the relationship between a firm’s annual report readability and its probability of bankruptcy. Findings show that firms with a larger 10-K file size have a higher probability of bankruptcy. More specifically, we suggest that there is a curvilinear relationship between annual report readability and bankruptcy probability. However, this relation is not significant for small firms. We further suggest that annual report readability has incremental power in predicting corporate bankruptcy. While prior accounting and finance research mainly used financial and accounting ratios as predictive variables of firm bankruptcy, we add a new non-financial predictive variable to these models.
The objective of this paper is to develop a model that measures competitiveness among tourism businesses in Mexico. To that end, this research consists of three parts: the first refers to the theoretical framework to define the competitiveness of a tourism company and proposes a theoretical business competitiveness model; the second deals with the development of a questionnaire upon the theoretical model; in the third part, the questionnaire and the theoretic model are validated using factor analysis and a competitiveness index, is presented.
The research seeks to derive the economic value added (EVA) of 6 franchises from the Korea Baseball Organization (KBO) and concurrently investigate the revenue components contributing to EVA. EVA is regarded as one of the efficient methods on estimating or assessing corporations’ actual economic benefits. For the procedure, financial statements of domestic professional baseball teams for 3 consecutive years (2016-2018), which were released to the Data Analysis Retrieval and Transfer System (DART) of the Financial Supervisory Service (FSS), were utilized. First, NOPLAT, IC, ROIC, and WACC, which refer to essential elements of estimating the EVA, were calculated respectively. Second, Pearson's correlation analysis was conducted between the EVA and the profit indicated in the income statement of the 6 teams. The results of the study are as follows: In case of Doosan, LG and SK, main business revenues showed the highest correlation with EVA, and Kiwoom and Samsung showed the highest correlation with EVA through the contributing factor of ticket sales revenue. Finally, for Lotte, advertising revenue was highly correlated with bringing EVA to the team
We explore the relationship between the education and gender of executives and firm performance using mainland China firm data. We find that executive education is positively associated with a firm’s market performance. However, this positive relationship is not moderated by executives’ gender. Our research result is consistent with the existing literature that firm market value increases with executive education, and that executive gender does not matter in terms of the relationship between higher education and firm performance.
Although traditional research has viewed leadership and followership as separate functions, recent studies have acknowledged the importance of followership in both the effectiveness and development of leaders. Followership models have emerged suggesting that leaders cannot be effective without having experience as a follower and that leaders and followers share characteristics that when successfully used in concert, can result in the achievement of organizational goals. Several stereotypes of what it means to be a follower inhibit both the development of followers and the willingness of aspiring leaders to assume followership roles. More research on the importance of followership to the health of an organization is necessary to encourage follower development.
Supply chain management has traditionally emphasized managing the physical flow of parts and finished goods. The next natural evolutionary step is developing the management of supply chain finance across multiple trading partners. One of these opportunities requires investigation of managing payment discounts. Traditionally, suppliers offer a discount to buyers to encourage earlier payment. Terms such as 2/10 n/30 allow for a 2% discount if the entire purchase is paid in full within the 10-day discount period instead of the customary 30 days. This 2% payment reduction translates into the equivalent of an annual return of 36%, resulting in the traditional rule of thumb to take the discount whenever possible. For a variety of reasons, only a small percentage of buyers actually are capturing these high returns. There is a disconnect between trading partners for using discounts for managing working capital across the supply. This paper explores the beneficial impact of participating in early payment discount programs, potential reasons for failing to capture discounts and possible solutions and offers research questions to guide future research to aid in improving this supply chain finance opportunity.
