The relationship between organisational innovation and firm performance was investigated in this study with transformational leadership as a moderator. Data were collected from 79 respondents across manufacturing firms listed on the main market of Bursa Malaysia using a stratified random sampling approach. Organisational innovation was conceptualised as a second-order construct comprising management, product and process innovation. Structural equation modelling was employed to test the proposed relationships. Results show that organisational innovation has a positive and significant effect on firm performance, whilst transformational leadership strengthens the relationship between organisational innovation and firm performance. These findings support the theoretical premise that firm-level capabilities and leadership behaviours jointly enhance firm performance. For firms seeking to enhance their competitive position, their innovation strategies must be supported by leadership styles that inspire, motivate and stimulate innovation. The empirical insights in this study are taken from an emerging market, making the results particularly relevant to policymakers and industry leaders in the Malaysian manufacturing sector.

This study explores the relationship among intellectual capital (IC), financial leverage, and firm performance using data on Vietnam's top 200 firms (2015-2021). Results show that intellectual capital positively affects firm performance. We also find that the positive relationship is less prominent in firms with higher financial leverage, indicating a negative moderating effect. This conclusion applies to long-and short-term debts. Our study highlights the crucial role of IC in enhancing firm performance, while also indicating the negative moderating effect of financial leverage on this relationship. Findings offer practical insights for firms and policymakers, emphasizing that investing in IC and maintaining optimal leverage can enhance firm performance and sustainable value creation in Vietnam.

This study examines how corporate social responsibility (CSR) shapes earnings management (EM) under varying levels of creditor oversight in an emerging economy. Using a panel dataset of 92 Vietnamese manufacturing firms from 2017 to 2021, we distinguish between accrual-based earnings management (AEMA) and real earnings management (REMA). We adopt a substitution perspective and examine how managers reallocate between AEMA and REMA under different monitoring conditions. We apply fixed effects, random effects, feasible generalized least squares, and instrumental variable GMM estimations to address unobserved heterogeneity and endogeneity concerns. Results show that CSR exerts asymmetric effects on EM. Under weak creditor oversight, CSR increases AEMA but reduces REMA, suggesting that managers use CSR to support accounting discretion while avoiding real operational distortions that could harm long-term performance. Stronger creditor oversight, proxied by leverage, is associated with lower accrual-based earnings management in the validated specifications, while the REMA results indicate partial reallocation toward less observable real activity manipulation under stronger monitoring. Drawing on signaling theory under monitor-specific detection asymmetry, we show that CSR affects not only the level but also the form of EM, depending on the monitoring intensity. A suspect-firm subsample analysis provides evidence consistent with the proposed substitution mechanism. Overall, CSR does not uniformly constrain EM but shifts managerial opportunism across the reporting channels.

This study examines the relationship between environmental, social, and governance (ESG) factors and firm efficiency of Unity Software Inc.’s suppliers, customers, and partners from 2010 to 2021. We apply a network data envelopment analysis to measure firm efficiency across a three-stage production process. Second, we investigate how ESG factors are associated with firm efficiency using a generalized additive model (GAM). The GAM results reveal a nonlinear relationship between ESG factors and firm efficiency, although it does not follow a clear U- or inverted U-shaped pattern. Overall, this study contributes to stakeholder theory by using a unique dataset to demonstrate the link between ESG performance and firm efficiency and highlighting ESG strategies that may improve/degrade firm efficiency in converting resources into business outcomes.

ABSTRACT Many environmental, social, and governance (ESG) initiatives have emerged because of the world's fast economic growth. On the one hand, ESG appears to be good for firm efficiency. However, the substantial costs of ESG investments expose companies to significant operational risks. This study analyzes the overall effects of ESG, the combined effects of ESG and ESG controversies, and the individual effects of the three pillars of ESG and ESG controversies on firm efficiency, which is derived using a two‐stage data envelopment analysis (DEA) model. This study achieves its objectives by analyzing 1630 firm‐year observations from 2011 to 2020 that pertain to companies in the supply chain of Microsoft Corporation. The regression results indicate a significantly positive association between overall ESG and firm efficiency. However, the combined effects of ESG and ESG controversies on firm efficiency are insignificant. While ESG controversy efforts have a negative impact on firm efficiency, the regression results show that the environmental and governance pillars of ESG have a beneficial effect each. The findings suggest that firms should take active measures to address environmental issues and strengthen governance systems to improve firm efficiency.

Intellectual capital (IC) is a crucial driver of sustainable financial performance, particularly in the chemical and pharmaceutical industries. This study uses panel data from Vietnamese firms between 2017 and 2022 to investigate how IC and research and development (R&D) investment influence firm sustainability in an emerging market. This research, compared with previous studies, confirms the positive impact of IC and R&D on short- and long-term financial stability and also highlights the moderating role of firm characteristics. Specifically, firm size and growth rate enhance the benefits of R&D investment, whilst older firms exhibit a diminishing effect, potentially owing to reduced adaptability or innovation capacity. By emphasising the relationship amongst R&D, IC and firm characteristics, this study offers fresh insights into maximising financial sustainability in dynamic markets. Findings provide a foundation for future research and practical strategies to foster long-term competitiveness in emerging economies.

The study investigates the correlation between foreign ownership and corporate risk at 147 listed firms in Vietnam from 2015 to 2019. Quantile regression and fuzzy-set Qualitative Comparative Analysis (fsQCA) technique method are applied to examine this relationship. Although the findings reveal that foreign ownership has an impact on corporate risk, the direction of this impact varies depending on the specific conditions. These empirical results have significant implications for firms in managing risks through effective policies related to foreign ownership. The findings will also enable foreign investors to assess the risk level of their investments when analyzing the current situation of a given firm, thereby adjusting their investment capital appropriately.

The study evaluates the efficiencies of Taiwanese cultural and creative firms, comparing family and nonfamily firms. A novel chance-constrained network data envelopment analysis model measured efficiency from 2005 to 2020. Key findings include the following: (1) Nonfamily firms are more efficient than family-controlled firms, and (2) a nonlinear relationship between controlling shareholdings and efficiency is present only in family-controlled firms. This study offers key insights for policymakers, management, highlighting the importance of R&D investment for enhancing firm efficiency, the strategic role of family control in early-stage efficiency improvements through R&D and the need for investors to adopt tailored strategies to optimize efficiency.

This study examines the relationship between financial reporting quality (FRQ) and investment efficiency (IE) in Vietnamese manufacturing firms and analyses the moderating role of various firm characteristics, including debt maturity (Stdebt), financial strength (Z), firm size and tax upon such relationship. The study uses a sample of manufacturing firms listed on the Vietnamese stock market from 2008 to 2021 to test and analyse overinvestment and underinvestment situations. Results indicate a positive relationship between FRQ and IE among manufacturing firms in Vietnam, and such a relationship is moderated by firm characteristics, including Stdebt, Z, firm size and tax. Moreover, debt maturity, TobinQ, audit and tax positively affect IE, whereas financial strength and firm size tend to affect IE negatively. Similarly, when firms are underinvested, TobinQ and leverage positively affect IE, whereas financial strength has a negative relationship with IE. Furthermore, the studying findings demonstrate that firm characteristics moderate the relationship between FRQ and IE. The results enhance the understanding of firm performance for CEOs and managers and provide short- and long-term internal strategies for sustainable development and goal achievement. Additionally, these findings assist investors in analysing and making informed investment decisions, helping firms minimise risks and enhance their competitiveness. Given the limited empirical research regarding the relationship between FRQ and IE in an emerging market, this study contributes to the existing literature by adding original value to this area. Furthermore, the findings confirm the agency and asymmetry information theories' view.

This research pioneers a shift in investment efficiency exploration by transcending traditional measurement approaches. The study identifies three main research areas: (1) Factors influencing investment efficiency, (2) Competition, green Research and Development (R&D) and cooperation in the supply chain, and (3) Environmental and renewable considerations in investment efficiency. This is achieved through a document co-citation analysis of 38 highly cited documents. Multidimensional scaling visually maps the intellectual landscape, emphasising the dominance of factors influencing investment efficiency. A 10-year analysis reveals dynamic trends with implications for financial transparency, strategic ownership, social responsibility and technological advancements. The study offers actionable insights for scholars and practitioners, emphasising the necessity of aligning financial goals with sustainability. Despite acknowledged limitations related to data source bias, this research contributes a nuanced understanding of investment efficiency trends, paving the way for future explorations in this vital domain.

This paper investigates the effects of environmental, social and governance (ESG) on financial performance and the moderating effect of intellectual capital (IC) on the relationship between ESG and financial performance. The study performs panel data analysis on data collected from 2,956 manufacturing companies listed on the A-share index of the Shenzhen and Shanghai stock exchanges from 2018 to 2021. Regression results indicate that ESG and management initiatives in implementing ESG have a significant and negative impact on financial performance, whereas the management initiative to control controversial events exerts a significant and positive impact. Investing in ESG and IC at the same time without proper resource allocation will exacerbate the increase in costs and thus reduce financial performance. Companies in the manufacturing sector should therefore consider the challenges and opportunities related to ESG and IC investments. Regulatory frameworks may encourage these companies to align their sustainability and IC strategies, which involve upfront costs. This paper contributes to the literature on the relationship between ESG and financial performance by considering IC as moderator in the context of Chinese manufacturing companies.

Purpose First, this study assesses the link between research and development (R&D) expenses and firm efficiency. Second, this study explores how family control moderates the link between the two. Design/methodology/approach This study uses two measures of time-based firm efficiency, namely, a window slacks-based measure (WSBM) and a window epsilon-based measure (WEBM) of data envelopment analysis (DEA). Then, 216 firm-year observations are analyzed in the Taiwanese cultural and creative industries from 2005 to 2017. Findings This study finds that R&D expenses significantly worsen firm efficiency, and that family control positively moderates this effect. A further test separating the sample into family-controlled and nonfamily-controlled firms indicates that R&D expenses negatively affect the efficiency of nonfamily-controlled firms but positively affect that of family-controlled firms. Research limitations/implications The existing literature has examined the link between R&D expenses and corporate performance. However, the process by which R&D expenses affect corporate performance from a production perspective remains unknown. Originality/value Overall, this study provides insights for policymakers to scrutinize resource management and R&D expenses from the production and resource-based perspectives.

This study investigates the impact of the integration of sustainability criteria in executive remuneration on corporate sustainability performance (CSP). The paper tests the pooled OLS models on a cross-country sample comprising 279 firms from 19 European Union countries and the United Kingdom under the period from 2014 to 2018. The results suggest that there is a significant positive impact of sustainability-related executive remuneration on CSP. Furthermore, there is no significant statistical evidence for the moderating impact of the sustainability committee on the relationship between sustainability-related contracting and CSP. Moreover, the results reveal that the moderating effects of official CSR disclosure and external assurance for sustainability reports are significantly negative. We suggest that regulators and practitioners promote the integration of sustainability targets in executive remuneration to improve CSP and review the quality of sustainability reporting systems.

This study examines how value-added intellectual coefficient (VAIC (TM)) and the modified VAIC (TM) affect corporate profitability. Using a Vietnamese corporate financial dataset of 1,624 firm-year observations for the period of 2009-2018, this study finds that intellectual capital (IC), as estimated by VAIC (TM) and modified VAIC (TM), has positive impacts on corporate profitability. However, the positive association between IC and profitability is clearer in the scatterplot involving the modified VAIC (TM). Although VAIC (TM) and modified VAIC (TM) consistently suggest positive impacts of IC on corporate profitability, the components of the two show different outcomes. This study stimulates the need to further examine not only VAIC (TM) but also other IC measurement models to help practitioners better estimate their IC for the best possible corporate profitability.

Purpose This study aims to investigate the association between intellectual capital (IC) and bank efficiency of Taiwanese bank branches. Design/methodology/approach This study manually collects sample data from 107 non-public financial reports of the bank branches of Taiwan Business Bank Company Limited. As this study concerns bank branches, this study uses questionnaires related to IC to measure the implementation of IC at branch level. This study employs data envelopment analysis (DEA) models (BCC, EBM and BootBCC) to identify bank branches' efficiency. This study uses partial least square-based structural equation modeling analysis to assess the impact of IC and bank efficiency. Findings Result reveals that relational capital (RC) significantly and negatively impacts bank efficiency. Findings also imply that human capital (HC) and structural capital (SC) do not contribute to bank efficiency in Taiwan. Practical implications Spending effort in building relationships with customers diverts banks' resources. More inputs that are used may not be converted to outputs immediately. Bank branches should focus on enhancing their service quality to attract customers to use the facilities provided by branches. Originality/value To the best of the authors' knowledge, this empirical study is the first to examine the association between IC and bank branches' efficiency in Taiwan by integrating primary and secondary data. For IC components, this study conducts a survey by designing the questionnaires related to IC to assess the implementation of IC at bank branches in Taiwan. In terms of efficiency, this study uses bank financial data and DEA models to identify bank branches' efficiency.

Purpose Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus aims to further the debate on the relationship between IC and corporate performance from the perspectives of nonlinearity, the capital values of IC and the use of a holistic measure of corporate performance. Design/methodology/approach Using 1,395 firm-year observations derived from Vietnamese listed companies from 2010 to 2018, this study focuses on (1) presenting an IC model benchmarked on value-creating expenses; (2) using a directional distance function (DDF)-based stochastic nonparametric envelopment of data (StoNED) framework to scrutinize multiple performance indicators and the capital values of people, structures and relationships simultaneously; and (3) adopting firm-year cluster-robust regressions to analyze the nonlinear association between IC and corporate performance empirically with an appropriate U test. Findings Results suggest that human capital (HC), structural capital (SC) and relational capital (RC) are the main contributors of high corporate efficiency, whereas only HC and RC contribute to high corporate profitability. These results are absent when this study employs the conventional data envelopment analysis (DEA), which is also a multidimensional framework, as the dependent variable. More importantly, IC and its components can improve corporate performance, namely, both corporate efficiency and corporate profitability up to a critical point, after which the effects would drop. Practical implications Overall, this study highlights not only the need to invest in IC but also its associated costs. That is, policymakers also need to note the marginal cost of investing in IC, which may in the end outweigh the benefits from IC. Originality/value This study extends IC-related studies by investigating the nonlinear relationship between IC and corporate performance. Moreover, the value of this study also lies in the multidimensional DDF-based StoNED framework.

PurposeFirst, this study assesses firms’ efficiency of transforming intellectual capital (IC) components into firm performance. Second, this study examines (1) cubic S-curve relationship between board independence and IC efficiency and (2) how firm size moderates the cubic S-curve relationship.Design/methodology/approachThis study employs a stochastic nonparametric envelopment of data (StoNED) framework to estimate IC efficiency, which is derived from the estimation process of transforming structural, relational and human capitals into accounting- and market-based performance indicators. This study conducts regression analyses on 1,104 firm-year observations of Taiwanese semiconductor firms over the period of 2011–2018.FindingsStoNED results suggest that sample firms' IC efficiency can be relatively improved by approximately 80%. Regression results indicate that a cubic S-curve relationship between board independence and IC efficiency exists, and firm size moderates the nonlinear effects.Practical implicationsOverall, this study highlights the importance of examining the nonlinear effect of board independence on IC efficiency from the perspective of agency theory, and the moderating effect from firm size, which may suggest availability of resources from the resource-based view of the firm.Originality/valueThis study contributes to the literature through the innovative application of an efficiency-based tool for evaluating IC efficiency. The cubic S-curve relationship between board independence and IC efficiency also points to the policy concerning the appropriate number of independent directors on board.

This article is not available at CUD collection. The version of scholarly record of this article paper is published in International Journal of Finance & Economics (2020), available online at: https://doi.org/10.1002/ijfe.1907

This study examines the impact of CEO age and education level on the earnings management of listed Vietnamese real estate companies in the period from 2007 to 2016. The results show that CEO age has a negative correlation to earnings management. Older individuals are more conservative and ethical than younger CEOs, and firms managed by CEOs who pursue higher education are less likely to encounter earnings management. In addition, firm performance, CEO gender, firm size and CEO duality are correlated to earnings management. Our research therefore suggests that investors should pay more attention to CEO age when investing in a company.

This paper aims to investigate the association between the founder-CEO and the level of firm financial sustainability in the presence of family ownership by using a unique dataset of publicly listed construction firms in Malaysia from 2009 to 2017. Our regression results show that the founder-CEO and family ownership significantly and negatively affect financial sustainability, which is proxied by operational self-sufficiency. However, their negative effects are alleviated when the founder-CEO and family ownership interact. These results show that the founder-CEO may be ineffective in sustaining the financial performance in the construction industry. This study calls for greater examinations of founder effectiveness under the influence of family ownership.