Purpose This paper aims to attempt to investigate whether firms have a target corporate cash holding (CCH) as well as determining firms speed of adjustment towards targeted corporate cash holding (SOA-CCH) and finally analysing firms performance impact on SOA-CCH. Design/methodology/approach The study is based on 2320 Indian-listed firms using data from 2000 to 2022. A panel data approach is used to examine the impact of firm performance on cash holding and the SOA. The models used are pooled OLS, fixed effect and generalised method of moments (GMM). Findings The results reveal that firms are only capable of reducing the discrepancy between their current and optimal liquidity levels by 48.3% within a year, which suggests that the adjustment process is imperfect. Firm performance and SOA are associated positively in India and adjustment speed is highly sensitive to firm performance. It is found that big firms have higher cash holding as compared to small firms. It is also found that SOA is highly sensitive in times of financial crisis (GFC 2008) as compared to health crisis (Covid-19). Practical implications The study offers valuable implications for diverse stakeholders. For investors, particularly those focused on dividend income, a firm’s SOA-CCH serves as a critical factor in shaping dividend policies. Regulators can view SOA-CCH as a mechanism to ensure firms meet investor expectations and fulfil debt obligations. From a managerial perspective, under the agency theory framework, higher SOA-CCH combined with strong financial performance can influence compensation and fiduciary incentives. For owners, both high and low SOA-CCH hold significance, as they inform investment and financing decisions that maintain financial stability and long-term sustainability of the firm. Originality/value This paper contributes to the body of literature by attempting to offer a thorough analysis on the nexus between the firm performance and SOA of CCH. Additionally, the uniqueness of the paper lies in its attempt to analyse the effect of firm performance on SOA-CCH during normal as well as crisis periods such as GFC 2008 and COVID 19 crisis. The results depict that firms were more robust in reaching a financial safe position during the global financial crisis than the global pandemic crisis. The paper also examined sensitivity of adjusting their SOA-CCH by big and small firms.
Purpose This study aims to examine whether smart city policies influence corporate digital transformation. Using China’s National Smart City Pilot Project as a quasi-natural experiment, we investigate if smart city designation affects firms’ digitalization levels as reflected in their Management Discussion and Analysis (MD&A) disclosures. Design/methodology/approach This study aims to use a smart city quasi-natural experimental design and investigate its role on firms’ digitalization by using textual analysis of MD&A disclosure. Cross-sectional tests, supportive channel analyses (examining government procurement, investment and innovation) and a “talk-versus-action” test are conducted to validate the findings. Findings Smart city designation is positively associated with digitalization-related MD&A disclosure. This effect is stronger for non-SOEs, firms in less competitive industries and those in Eastern regions. Mechanism tests indicate government digital procurement, digital intangible assets and digital innovation as key channels. Crucially, increased disclosure predicts subsequent substantive digital investment and innovation, not mere symbolism and improves internal control quality while reducing real earnings management. Originality/value This paper provides novel evidence on the spillover effects of smart city initiatives on micro-level firm behavior. It demonstrates that smart city policies extend beyond municipal infrastructure to catalyze substantive corporate digital transformation and enhance the information environment, offering insights into the real economic consequences of urban digitization policies.
Research This study aims to determine the effect of promotion costs and general administrative costs on net profit in cosmetics and household needs companies. to Net Income in cosmetics companies and household needs listed on the Indonesia Stock Exchange (IDX) for the period 2020-2023, both the influence partially and simultaneously. The research method used in this research This research is a descriptive and associative method with a quantitative approach. This study uses secondary data, namely the financial statements of PT Victoria Care Indonesia Tbk, PT Martina Berto Tbk, PT Unilever Indonesia Tbk, and PT Kino Indonesia Tbk. Period 2020-2023. The data analysis technique used is multiple linear regression test, partial test (t test) and partial test (t test). partial test (t test) and simultaneous test (F test). The results showed that partially the variable Promotion Costs and General Administration Costs have no effect on Net Income. effect on Net Income. Simultaneously promotion costs and general administration costs Promotion costs and general administrative costs affect net profit in cosmetics companies and household needs listed on the Indonesia Stock Exchange (IDX) for the period of 2020-2023.
This study aims to examine the effects of capital, education level, and financial literacy on the income of Micro, Small, and Medium Enterprises (MSMEs) in Bengkalis Regency. A quantitative approach was employed using a survey method involving 390 MSME actors selected through purposive sampling. Data were collected through structured questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that capital, education level, and financial literacy have positive and significant effects on MSME income, with financial literacy emerging as the most dominant factor. These findings suggest that, beyond traditional production factors, the ability to effectively manage financial resources plays a critical role in enhancing business performance. This study contributes to the literature by integrating production theory and human capital theory in explaining MSME income, while also highlighting the importance of financial literacy in the context of small businesses in regional economies. Practically, the findings underscore the need to strengthen financial literacy and human resource capacity as strategic approaches to improving MSME income.
This study aims to analyze the influence of tax policies on business marketing activities in modern retail companies, specifically Indomaret. As one of the largest minimarket chains in Indonesia with thousands of outlets spread across Indonesia, Indomaret faces various tax policies, such as Value Added Tax (VAT), income tax, and digital tax regulations, which impact the company's operations and marketing strategies. Tax policies, particularly the implementation of an 11% VAT on retail products, directly impact product pricing and consumer purchasing power. This situation encourages the company to adjust its marketing strategies, such as price promotions, discounts, and advertising cost efficiency, to maintain competitiveness in the market. Furthermore, Indomaret also utilizes its extensive network as part of its service marketing strategy, including providing tax payment facilities for the public, which enhances brand image and consumer trust. The research method used a quantitative approach, with data collection techniques through consumer and business surveys, as well as literature studies related to tax policies and retail marketing. Data analysis was conducted to measure the relationship between tax policy variables and marketing activities, such as pricing, promotion, and distribution strategies. The results indicate that tax policies have a significant influence on business marketing activities at Indomaret. Increasing tax burdens tend to encourage companies to adjust pricing and promotional strategies to remain competitive. Furthermore, tax policy also encourages marketing innovation, particularly in the use of additional services and digitalization to attract consumers. The conclusion of this study indicates that tax policy is a critical external factor in determining retail marketing strategies. Therefore, Indomaret needs to integrate tax planning with its marketing strategy to increase business effectiveness and maintain customer loyalty.
