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The aim of the study is to examine the impact of society’s economic well-being determinants – above and beyond the firm-specific and macroeconomic determinants – on firm profitability in Poland. Based on stakeholder theory we hypothesized that the economic well-being of society can influence firm performance. Therefore, we included real wage and salary growth, internal migration, international migration, and natural increase variables in the regression models. We applied four models with different sets of variables using pooled ordinary least square regression, as well as fixed and random effects regressions with robust standard errors clustered at the firm level. The dataset covers the period from 2004 to 2021, comprising 5400 firm-year observations from Poland in the wholesale and retail trade sector. We found that firm profitability generally increases with higher inflation and exchange rate depreciation. Moreover, in models including society’s economic well-being variables, GDP growth is no longer a significant determinant of firm profitability. Most importantly, the study demonstrates a positive relationship between real wage and salary growth and firm profitability. We also found that international migration is negatively associated with firm profitability. Regarding natural increase, the study suggests that it has a positive effect on return on equity, but not on return on assets.

The aim of the study is to examine the impact of society's economic well-being determinants - above and beyond the firm-specific and macroeconomic determinants - on firm profitability in Poland. Based on stakeholder theory we hypothesized that the economic well-being of society can influence firm performance. Therefore, we included real wage and salary growth, internal migration, international migration, and natural increase variables in the regression models. We applied four models with different sets of variables using pooled ordinary least square regression, as well as fixed and random effects regressions with robust standard errors clustered at the firm level. The dataset covers the period from 2004 to 2021, comprising 5400 firm-year observations from Poland in the wholesale and retail trade sector. We found that firm profitability generally increases with higher inflation and exchange rate depreciation. Moreover, in models including society's economic well-being variables, GDP growth is no longer a significant determinant of firm profitability. Most importantly, the study demonstrates a positive relationship between real wage and salary growth and firm profitability. We also found that international migration is negatively associated with firm profitability. Regarding natural increase, the study suggests that it has a positive effect on return on equity, but not on return on assets. [ABSTRACT FROM AUTHOR]

Tax payment has been a burden to business organizations, but a source of revenue to government. This study therefore, delved into the influence of government-imposed taxes on the profitability of firms, focusing on Nigerian Oil and Gas Companies. The research revealed that the coefficient of petroleum profit tax (PPT) exhibited a positive (11.28640) and statistically significant impact (P=0.0129<0.05). Similarly, the beta value of customs and excise duty (CED) displayed a positive (96.41566) and statistically significant impact (P=0.0013<0.05). On the other hand, the beta value of value-added tax (VAT) showed a negative effect (-706.1630) that was statistically significant (P=0.3117>0.05). In conclusion, this study demonstrated varying effects of government-imposed taxes on firms' profitability, particularly within Nigeria's oil and gas sector. While petroleum profit tax and customs and excise duty exerted positive and significant effects, value-added tax had a negative impact. Consequently, the study recommends a reduction in the value-added tax rate by the Nigerian government to facilitate the enhanced profitability of select oil and gas companies. Additionally, government should intensify its efforts in improving public infrastructural facilities like good access road, adequate electricity supply and security to assist private companies improve their profitability while reducing their expenses which will serve as an incentive and encouragement to enable them pay their taxes promptly and regularly. [ABSTRACT FROM AUTHOR]

AbstractThe study investigates the influence of foreign institutional investment on the risk-return profile of firms. Corporate risk is analyzed as business risk and financial risk in this study. The impact of foreign institutional investor’s (FII) holding on business and financial risk taking behavior is studied on 174 listed non-financial firms in India using panel quantile regression methodology for a span of 20 years which include the pre and post 2008 financial crisis periods as well. Panel fixed effect model was found to be appropriate in this study The impact of FII holding is also studied through the distribution of the risk through panel quantile regression. The impact of FII holding on risk taking behaviour of the firms is studied primarily across high, average and low proportion of corporate risk. Overall FII holding has an inverse relationship with corporate risk taking behavior of firms. The positive impact of FII holding across all types of firms in terms of the risk-return profile indicates that their presence is long term and reduces risk taking behaviour of the corresponding firm. The implications of this study will be significant in regulating FII inflows and outflows to ensure discipline on the part of firm management in improving its risk-return profile.

This study examines whether debt financing affects firm labor employment. Using Chinese listed companies between 2007 and 2021, we identify an inverted U-shaped relationship between debt financing and labor employment. Increased debt financing tends to boost labor employment. However, this positive influence gradually diminishes until a critical point is reached and the relationship turns negative thereafter, suggesting that there is a best balance between debt financing and labor employment. This inverted U-shaped association is also influenced by firm profitability and financial risk, with the former steepening the relationship and the latter making it smoother. Moreover, the impact of debt financing on labor employment is more pronounced in large firms, non-state-owned enterprises, labor-intensive companies, and firms with high solvency. Our findings imply that companies can effectively harness the positive effects of debt financing on labor employment by strategically adjusting their capital and labor resources. [ABSTRACT FROM AUTHOR]

The study investigates the influence of foreign institutional investment on the risk-return profile of firms. Corporate risk is analyzed as business risk and financial risk in this study. The impact of foreign institutional investor's (FII) holding on business and financial risk taking behavior is studied on 174 listed non-financial firms in India using panel quantile regression methodology for a span of 20 years which include the pre and post 2008 financial crisis periods as well. Panel fixed effect model was found to be appropriate in this study The impact of FII holding is also studied through the distribution of the risk through panel quantile regression. The impact of FII holding on risk taking behaviour of the firms is studied primarily across high, average and low proportion of corporate risk. Overall FII holding has an inverse relationship with corporate risk taking behavior of firms. The positive impact of FII holding across all types of firms in terms of the risk-return profile indicates that their presence is long term and reduces risk taking behaviour of the corresponding firm. The implications of this study will be significant in regulating FII inflows and outflows to ensure discipline on the part of firm management in improving its risk-return profile. [ABSTRACT FROM AUTHOR]

Considering the Italian wine market, we investigate the relationship between product quality, on the one hand, and profits and profitability, on the other hand. Using data from 1052 wineries over the period 2006–2015, we find robust evidence of a positive relationship between product quality, measured by the wineries' reputation for quality, and profits, measured by the Earnings Before Interest, Depreciation and Amortization. By contrast, we observe no relationship between reputation and profitability, measured by the Return on Invested Capital. [ABSTRACT FROM AUTHOR]

In recent decades, stakeholders have begun to place a greater emphasis on sustainability-related issues, including climate change. Furthermore, the implementation of climate change initiatives has prompted companies to disclose information regarding their evaluation and handling of climate-related risks and potential benefits. However, there is a lack of existing literature that investigates this issue in less developed markets, particularly in Saudi Arabia, where the capital market is rapidly developing. The objective of this study is to assess the degree of performance in reporting climate risk and investigate potential correlations between climate risk reporting performance and firm characteristics among non-financial firms in Saudi Arabia during the period from 2018 to 2021. To achieve the objectives of the study, a total of 515 firm-year observations were utilized, representing 140 non-financial firms in the context of Saudi Arabia. The study’s findings illustrate that the climate risk reporting performance level has steadily improved in Saudi companies over the years. In addition, the findings reveal that firm size and industry exhibit a positive correlation with climate risk reporting performance. Conversely, firm leverage and profitability do not demonstrate such associations. The results are in line with alternative measures of climate risk reporting performance, as well as when climate risk reporting performance is broken down into the four core elements. Policymakers and market regulators could use these results to promote awareness of the factors that influence climate risk reporting performance and to enhance sustainable practices.

The increasing prevalence of IFRS adoption has resulted in enhanced transparency, accounting quality, and comparability of financial information among firms, especially in emerging markets worldwide, including India. Nonetheless, the question of whether the adoption of IFRS has led to improved firm performance persists. To address this question, this study examines the impact of transitioning from India’s GAAP-based accounting standards to IFRS-converged standards (Ind AS) on non-financial firms’ performance from 2013 to 2022. The empirical findings reveal that the convergence of Indian accounting standards with IFRS significantly improves firm performance, as demonstrated by a positive coefficient of 0.0166 for Ind AS in the fixed-effect model. The study also validates the original empirical findings using the return on equity (ROE) measure of firm performance, which yielded a coefficient of 0.0197, further confirming that the adoption of Ind AS leads to an increase in the performance of Indian firms. These results contribute new insights to the existing IFRS literature and have implications for policymakers and managers.

Objective: The purpose of this research is to examine the impact of Employee Stock Ownership Plans (ESOP) on firms' profitability of Tanzanian publicly listed firms. Design/Methods/Approach: The research utilized a longitudinal research design by employing secondary data from firms listed in the Dar es Salaam Stock Exchange (DSE). The random effect model with two estimations was utilized to analyze data. Findings: Results suggest that ESOP has a positive and significant effect on the firm’s quest for profitability. Originality: The originality or uniqueness of this study lies in providing further understanding from a different economic and cultural perspective and enhancing the results of academic studies in this area. Practical/Policy implication: For business owners, the results of this study can be used as a root from which they can have a reason to grow their own ESOP and increase their wealth. For policymakers, it is a base for policy formulation that will enhance the profitable tax base.

The authors study the effect of corporate board gender quotas on firm performance in France, Italy, and Spain. The identification strategy exploits the exogenous variation in mandated gender quotas within country and over time and uses a counterfactual methodology. Using firm-level accounting data and a difference-in-difference estimator, the authors find that gender quotas had either a negative or an insignificant effect on firm performance in the countries considered with the exception of Italy, where they find a positive impact on productivity. The authors then focus on Italy. Using a novel data set containing detailed information on board members' characteristics, they offer possible explanations for the positive effect of gender quotas. The results provide an important contribution to the policy debate about the optimal design of legislation on corporate gender quotas. [ABSTRACT FROM AUTHOR]

This study endeavours to scrutinize the interconnections among Total Quality Management (TQM) practices, decision-making culture and style, social control mechanisms, and firm profitability within the aviation sector of the Kingdom of Saudi Arabia. The primary objective of this research is to elucidate the determinants impacting organizational performance and effectiveness specifically within the educational sector. A cohort comprising 189 employees from diverse departments across two airlines in the Kingdom of Saudi Arabia participated in this study, responding to meticulously crafted structured questionnaires. The measurement scales incorporated in the survey instruments were derived from precedent research endeavours and subjected to analysis utilizing the Stata SEM software for the application of structural equation modelling. Statistical methodologies, including confirmatory factor analysis and path analysis, were employed to scrutinize the intricate relationships existing between the variables under investigation. The examination disclosed noteworthy associations among TQM practices, decision-making culture and style, social control mechanisms, and firm profitability. Specifically, TQM exhibited a positive impact on decision-making culture and style, with social control mechanisms acting as moderators in the TQM-firm profitability relationship. Moreover, decision-making culture and style were identified as mediators in the association between TQM and firm profitability. This research investigates the impact of total quality management, decision-making, social control, and organizational performance on the Saudi airline industry. The findings underscore the importance of fostering a decision-making culture rooted in total quality management and implementing effective decision-making practices among employees. Additionally, social control mechanisms play a crucial role in moderating the dynamics of total quality management.

AbstractThis study investigates the effects of working capital management (WCM) through and its components (Days Sales Outstanding—DSO, Days Inventory Outstanding—DIO, and Days Payable Outstanding—DPO and Net Working Capital) on firm profitability in consumer goods and construction firms by applying Generalized Method of Moments (GMM). The independent samples t-test was used to study the difference of WCM between the two groups of firms. The data were collected from 21 consumer goods firms and 41 construction firms listed on Vietnam Stock Market in the period 2011–2020. This study indicates that WCM components impact differently on firm profitability of selected firms in the sample. The results provided empirical evidence supporting financial management theory and implied that WCM is a critical factor explaining firm profitability, and industry specificity is a factor explaining the difference in WCM and its influence on firm profitability in the study sample. The results recommend that financial managers should focus on managing working capital and consider industry characteristics as developing working capital management policy to improve firm profitability.

Job vacancy duration reflects the time a firm spends searching, selecting, and hiring for a job opening. Capturing vacancy duration using the creation and deletion dates of job postings by US public firms, we examine the informativeness of vacancy duration for future firm profitability. We find that while firms that quickly fill low-skill job vacancies exhibit higher future profitability, firms that take more time to fill high-skill jobs exhibit higher future profitability. Our cross-sectional analyses across the benefits and costs of candidate selection and performance expectations suggest that the informativeness of vacancy duration comes from its reflection of firms' hiring strategies. That is, firms expecting higher profitability recruit more intensively to avoid the opportunity cost associated with vacancies for low-skill jobs and to ensure the selection of high-quality workers for high-skill jobs. Further analyses show that the implication of job vacancy duration for future profitability is not incorporated timely in the capital markets, as evidenced by pessimistic analyst forecasts and positive earnings announcement returns in future quarters for firms with short (long) durations for low-skill (high-skill) jobs. These results demonstrate the informativeness of job vacancy duration for firm profitability and advance the understanding of firms' hiring strategies. [ABSTRACT FROM AUTHOR]

This research study examines the impact of information technology on firm profitability and stock returns. Using a comprehensive dataset of firms across various industries, this research employs rigorous statistical analysis techniques to investigate the relationship between IT investments, firm profitability metrics, and stock returns. The study focuses at how IT investments affect financial performance measures including return on assets (ROA) and return on equity (ROE), with P-values of 0.34 and 0.12, respectively. Furthermore, the study investigates the influence of IT on stock returns, taking into account market capitalization, industry trends, and macroeconomic variables. This study’s conclusions center on the beneficial association between IT investments and corporate profitability. The T-value for the IT investment has risen to 6.5. The analysis reveals that firms that strategically leverage IT investments tend to experience higher profitability metrics. Additionally, the research demonstrates the impact of IT on stock returns, highlighting the significance of IT as a driver of firm value and investor confidence. Moreover, this study delves into the mechanisms through which IT investments contribute to firm profitability and stock returns. It investigates the mediating role of factors such as process innovation, customer relationship management, and supply chain optimization, which facilitate the translation of IT investments into improved financial performance. The implications of this research are significant for both practitioners and policymakers. The findings provide valuable insights for firms seeking to enhance their profitability and create shareholder value through strategic IT investments. Additionally, policymakers can use these findings to formulate policies and initiatives that promote the adoption and effective utilization of IT in businesses across various sectors. [ABSTRACT FROM AUTHOR]

Şirketlerin iyi yönetilmesine yönelik çabalar kurumsal yönetim kavramı ile ifade edilmekte ve iyi bir kurumsal yönetimle oluşturulan etkili bir yönetim yapısının, şirketlerde karlılığı arttırdığına yönelik çalışmalar bulunmaktadır. Bu çalışmanın amacı, Irak’ta kurumsal yönetim faktörlerinin etkili olup olmadığını ve şirketlerin karlılığını arttıran kurumsal yönetim faktörlerini tespit etmektir. Bu amaçla 2011-2019 yıllarında Irak Borsası’nda işlem gören 51 şirketin 9 dönemlik verileri ile oluşturulan 459 şirket/yıl verisi kullanılmıştır. Yapılan panel veri analizi sonucunda Irak’ta şirketlerin karlılığını arttıran kurumsal yönetim faktörleri yönetim kurulunda yer alan kadın üyelerin oranı ve halka açıklık oranı olarak tespit edilmiştir.

The energy sector matters the sustainable development directly and is sensitive to climate change. A few empirical studies concentrate on how climate change influences firm performance. Climate change brings higher production costs and lower efficiency on the supply side and leads to beneficial sale performance and improves profit. However, it is ambiguous to the relationship of supply–demand and revenue‐cost levels, and their change is not consistent. Using panel data of 99 China‐listed firms active in the energy sector over the period 2000–2020, this study aims to identify the causal relation between climate change and the profitability of energy firms while controlling for firm‐specific and energy market‐related factors. The quantile regression results show that temperature deviation (TDEV) positively impacts the profitability of energy firms, and this impact varies at different quantiles of the profitability distribution. These findings remain unchanged by four robustness checks. Moreover, mechanism results indicate that revenue and cost have different interaction effects on the causal relation. The findings of this study can provide forward‐thinking expectations and assess climatic adaptation and risks, particularly inspired stakeholder engagements. [ABSTRACT FROM AUTHOR]

This study examines the impact of traditional working capital management (WCM) and modern technological factors, specifically digital communications with customers as part of a customer relationship management strategy (CRM), on the performance of retail consumer-focused industrial and service firms in Russia. Panel data regression analysis is used to determine the individual impact of each strategy on profitability and model the combined effect of the two strategies. The results are presented through a 3D visualization, which highlights the significant positive impact of WCM and CRM on firm profitability. The study concludes that an effective combination of the two strategies can lead to a significant increase in profitability for companies operating in the retail consumer industry in Russia.

To achieve sustainable development, eco-efficiency can be used as the main tool that will enable firms to create more by using fewer resources resulting with less waste and pollution. In that aspect, this paper aims to investigate the relationship between eco-efficiency and firm profitability from 2011 to 2020 in Serbia as a high fossil fuel-reliant economy. To test the relationship between eco-efficiency and firm profitability, we used the panel technique, and we applied the Generalized Method of Moments (GMM) for estimation. The analysis showed that the highest eco-efficiency indicator in Serbia was recorded in 2015, which means that Serbia had the highest overall air emissions that year. Our main results show that the eco-efficiency variable impacts the profitability of Serbian polluting firms. Additionally, our model suggests that the size variable has a significant negative impact on firms' profitability; the investment level variable influences profitability positively, but the capital intensity variable has no impact on firms' profitability. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to explore the impact of inventory turnover on the profitability level of Saudi manufacturers. The data comprises 78 manufacturers listed on the Saudi Stock Exchange and was used to test the research hypothesis. The related data over the 2017–2021 period were collected from annual reports and the Datastream database. After running a multiple regression analysis with a fixed effects model, findings showed that the higher the inventory turnover ratio, the higher the cost which could be suppressed, and the greater the profitability of a company. The outcomes of this study have significant implications for managerial accounting issues in the setting of Saudi Arabia. Further, they provide policy recommendations to decision makers and assist managers in enhancing sustainability in the manufacturing sector. This research is the first to investigate this relationship including the impact of COVID-19 among Saudi companies in several industries, thus filling a gap in comparable research. [ABSTRACT FROM AUTHOR]

An efficient monitoring by an effective board can correlate the firm performance. The main purpose of this study is to examine the interaction of political connections and earnings quality on firm performance in Pakistani non-financial sector. The results show that politically connected firms have lower earnings quality. Using a sample of 114 actively trading firm on PSX for the period of 2011-2021, GMM estimates for panel data has been used. The significant and negative coefficient of interaction between earnings quality index and political connection shows the negative effect of manipulating earnings on all three performance measures of firms (ROA, ROE & PM) having politically connected directors as their board members. The results are consistent and support the prior research that Pakistani corporate sector has great influence of political connections. An interesting findings of this study are that this influence on accounting numbers is the reason behind financial crisis. Firms with political affiliations involve more in accrual earnings manipulations to improve financial numbers. These findings reveal that non-connected firms perform better than connected firms. Overall, the findings of this study are helpful for stakeholders, investors, supervisory and regulatory bodies to analyze the financial reports of politically connected firms even after the implementation of code of corporate governance and in improving financial reporting quality. Theoretically, the results support Agency theory and resource dependency theory. [ABSTRACT FROM AUTHOR]

This research focused on exploring capital structure that would have an impact on the Vietnamese company's profitability. Theoretically, we apply agency theory which mentions the separation of ownership and management, which leads to the problem when the managers act in their own interests rather than the owner's interest. We built a research model, and the quantitative data was clarified thanks to the regression model with the data given by 300 Vietnamese firms for the period from 2012 to 2018. The findings indicated that firm profitability, represented by Return on Equity (ROE) and Return on Assets (ROA), was associated with liquidity and debt. In detail, it was indicated that there would be a positive relationship between liquidity and profitability of Vietnamese entrepreneurs, while there was a negative relationship between long-term debt and profit maximization. Moreover, the short-term loan also has a positive impact on the firm's profitability in the context of Vietnam. These preliminary outcomes negated some previous research, confirming that the higher the leverage, the better the firm's profitability. The difference in findings may provide information about a dynamic Vietnam market as well as the financial environment that require changes in the capital structure to gain the optimal profit. [ABSTRACT FROM AUTHOR]

This research aims to study the determinants and performance‐outcome of the firm's capacity to maintain a loyal customer base. Therefore, this research investigates the influence of sustainable product development on the firm's capacity to maintain customer loyalty. Furthermore, this research investigates the moderating influence of marketing resource intensity on sustainable product development and the firm's capacity to maintain customer loyalty. Moreover, this research investigates the firm profitability as a performance outcome of the firm's capacity to maintain customer loyalty. This research uses the panel dataset of 433 manufacturing firms from the United States. The findings from fixed‐effect regression analysis confirm the significant positive influence of sustainable product development on the firm's capacity to maintain customer loyalty. The moderation analysis confirms the significant positive influence of marketing resource intensity on sustainable product development and the firm's capacity to maintain customer loyalty. The results also confirm the contribution of the firm's capacity to maintain customer loyalty to firm profitability. This study contributes to the customer loyalty literature stream by theorizing the capacity to maintain customer loyalty construct and empirically studying its performance outcome, the contribution of sustainable product development in the firm's capacity to maintain customer loyalty and the moderating role of marketing resource intensity in this regard, under the resource‐based view. Based on the study findings, this research suggests that managers need to emphasize sustainable product development in the firms to strengthen the firm's capacity to maintain customer loyalty and recognize the interactional role of marketing resource intensity in this regard. [ABSTRACT FROM AUTHOR]

The objective of the study was to analyze the impact of dividend policy on firm profitability. Dividend paying firms from three industrial sectors namely cement, automobile and sugar were selected for the period 2010-2020. Out of the total 74 dividend paying firms in these three industrial sectors only 33 were selected for which data was available for the entire study period. Fixed effects model is used to measure the impact of dividend policy from firm profitability. Findings of the study revealed that both attributes of dividend policy namely DPR and DY has a significant positive impact on all three proxies of firm profitability (ROA, ROE, EPS) except for DPR impact on EPS in Model III where the impact is also positive but insignificant. [ABSTRACT FROM AUTHOR]

Bu araştırmada 2005-2018 yıllarında 39 ülkeden 142727 finans dışı sektörde faaliyet gösteren halka açık firmalardan oluşan geniş bir veri seti kullanılarak net işletme sermayesinin firma karlılığı üzerindeki etkisi incelenmiştir. Kullanılan panel veri seti ülke, firma ve zaman olmak üzere üç düzeyli hiyerarşik bir yapıda düşünülmüştür. Bu nedenle gelişmekte olan ülkelerdeki firma karlılığı belirleyicileri Hiyerarşik Lineer Model (HLM) yaklaşımı kullanılarak analiz edilmiştir. Analiz sonucunda firma karlılığındaki değişkenliğin büyük bir kısmının firma ve zaman düzeylerinden kaynaklandığı ortaya konmuştur. Ancak ülke düzeyindeki değişkenliğin küçük olması ülkeye özgü değişkenliğin firma karlılığı üzerinde etkisinin olmadığı şeklinde yorumlanmamalıdır. Sonuç olarak gelişmekte olan ülkelerde faaliyet gösteren firmaların yöneticileri net işletme sermayesi kararlarını verirken bu kararın firma karlılığını doğrudan etkileyeceğini dikkate almalıdırlar.

We investigate the association between trade credit and firm profitability among large, Bombay Stock Exchange (BSE) listed Indian corporations, identify an optimal trade credit level, and analyse how financial constraints influence the relation between trade credit and firm profitability. We use a sample of six broad non‐financial sectors, constituting over 60 industrial sub‐sectors, presented in panel form, and apply regression analysis to examine the relationship between trade credit and firm profitability. The findings suggest an inverted U‐shaped relationship between trade credit and firm profitability and support an optimal receivables and payables level. Trade credit is profitable for firms until the associated benefits exceed the costs. Breaching the optimal level affects firm profitability. The extent of the financial constraints influences the optimal level of trade credit. Knowing the relation between trade credit and firm profitability may induce managers to form proactive trade credit management policies and help investors assess firm profitability and operational risk. However, given that our study involves only large, BSE‐listed firms, generalizing the findings to other companies and settings requires caution. [ABSTRACT FROM AUTHOR]

This study investigated the effect of corporate governance information (CGI) disclosure on firms' profitability in the Dar es Salaam Stock Exchange (DSE). Twenty-one listed companies were studied for a period ranging from 2006 to 2021 using a mixed research method with an explanatory sequential design. Return on equity (ROE) and Return on Assets (ROA) was employed as dependent variables in the panel data analysis. CGI disclosure was an independent variable. The control variables were geographical diversification, firm age, size, and sales growth. Secondary data was obtained from DSE. Qualitative data was gathered via semi-structured interviews. Thematic analysis and a random effect model with two estimates (1 and 2) were used to analyze qualitative and quantitative data. The findings suggested a positive and significant effect of CGI disclosure on firm profitability. The findings add to the body of knowledge by signifying stakeholder theory. The study concluded that Disclosure of CGI might undeniably result in increased profitability. We recommended that firm managers look closely at CGI disclosure, enhance their disclosure practices, and invest in disclosure strategies that benefit stakeholders.

Manufacturing industries are an asset or value added part of an economy, intimately linked with industrial and engineering design, and engaged in producing significant economic productions that can assist the national growth and development. The aim of the study was to estimate the profitability and employment growth of medium and large size industries in Ethiopia. The variables were chosen based on theoretical and experimental literature findings. In this study, an explanatory study design was implemented in carrying out this research with the prearrangement of secondary data collected from the panel data set of medium and large size manufacturing industries conducted annually by the central statistics agency over the period 2002–2011 E.C. The study employed panel data estimation methods to analyze the influence of medium and large size manufacturing industries on profitability and employment growth. Three panel data models are used: pooled ordinary least squares, fixed effect, and random effect estimation method. The Hausman test revealed the random model was the best fit for both profitability and employment growth. The diagnosticstest: normality, multicollinearity, heteroscedasticity, and autocorrelation tests were conducted on the data. The results obtained indicate that employment growth and profitability in Ethiopia are generally driven by medium and large-size manufacturing industries. The random model result shows that ownership, firm-size, advertising intensity and import intensity have a positive influence and substantial effect on profitability. But, the government has significant effect and a negative influence on profitability. The random model shows that government, advertising intensity and firm-size have significant effect and positive influence on employment growth. Nevertheless, import has significant effect and a negative influence on employment growth. Eventually, the employment growth and profitability have a positive influence and insignificant effect and the authors suggested further research in the areas by taking into account additional variables and newly emerging industries.

This paper examines how agents' response to macroeconomic uncertainty affects firms' revenues, expenses, and profitability in a global sample of firms spanning 1997 to 2018. Consistent with consumers reducing purchases and managers cutting costs, I find that increases in macroeconomic uncertainty lead to both lower revenues and lower expenses. The net short-term effect on profitability is positive as the reduction in expenses exceeds the fall in revenues. This favorable profitability effect is attenuated for firms whose institutional environment restrains cost-cutting, holds for both the cash and accrual components of earnings, and is robust to instrumental variable estimation employing exogenous variation in macroeconomic uncertainty arising from natural disasters, political unrest, revolutions, and terrorist attacks. JEL Classifications: E22; D81; M41. [ABSTRACT FROM AUTHOR]

Research Summary: Extant empirical work partitioning the variance in firm (business segment) profitability has identified industry, corporate parent, business segment, and time as key sources. However, this variance decomposition research stream has treated firms as atomistic, autonomous entities. We employ a fast‐unfolding community‐detection algorithm to detect firms' network memberships and use the Shapley Value method to isolate the effect of the firm's alliance network, in addition to industry, corporate parent, business segment, and year effects, on the variance in business unit performance. Our findings demonstrate that the effect of the firm's alliance network explains 11% of the variance in firm ROA among 16,381 business segments from 1979 through 1996. We also extend the time period through 2018 and find that our results broadly hold. Managerial Summary: In the search for superior firm performance, managers typically focus their attention externally on profitable industries in which to operate, as well as internally on their firms' idiosyncratic and valuable resources and capabilities. In addition to these profitability sources, our work suggests another important, but heretofore overlooked, factor in the managerial quest for competitive advantage: the value‐creating potential of alliance networks. We employ a machine‐learning algorithm to detect firms' network memberships. Our findings indicate that as much as 11% of the variance in firm profitability (ROA) is explained by the network of alliances of which the firm is a part. Our study also implies that the emphasis on networks continues to be relevant in a technology age in which industry boundaries are blurring. [ABSTRACT FROM AUTHOR]

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This study sets out to explore the influence of a zero-leverage policy on firm profitability and value. The results suggest that zero-leverage policy exhibits significant and positive effects on firm performance. This study also considers the potential mechanism of the zero-leverage variables and firm characteristics. The results proved that the zero-leverage policy can reduce the negative impact of corporate governance problems on the firm and further improve firm performance. Additionally, the zero-leverage policy can help firms lower their risk and enhance their overall performance. The zero-leverage is more effective in the improvement of firm performance if there are high financial constraints. This study obtains the results of robustness after controlling the endogeneity problem and testing for the industrial adjustment. [Display omitted] • The results show a significant positive impact of the zero-leverage approach on firm performance. • The zero-leverage policy mitigates corporate governance problems and improve firm performance. • The zero-leverage policy can also help firms lower their risk and enhance their overall performance. • The zero-leverage capital structure is more effective in enhancing performance and value for firms with high financing constraints. [ABSTRACT FROM AUTHOR]

Agricultural enterprises are integral for agricultural modernization, serving as a bridge between scattered small-scale farmers and modern markets. However, agricultural competitiveness is still weak in China. This paper uses the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method to measure the growth performance of China's listed agricultural companies and analyze its influencing factors based on Panel-Corrected Standard Errors (PCSE) to verify whether they are capable of achieving sustainable development. The findings confirm that first, listed Chinese agricultural companies have significantly increased profitability and scale in recent years but are still weak compared to other industries. The growth performance of such enterprises is generally stable, the difference between them is decreasing, and their growth ranking fluctuates greatly, with significant regional and industrial characteristics. Second, technological efficiency, scale, and age are positively related to the growth of listed agricultural companies. The diversification and expansion of business harm the profitability and development of enterprises. Currently, financial support can satisfy the short-term profit-seeking demands of enterprises but is inadequate to improve the ability of enterprises to grow. Third, China's listed agricultural companies need to devise policies through a forward-looking perspective and use them more effectively. Additionally, the transformation opportunities introduced by non-agricultural capital into agriculture deserve attention. When agricultural enterprises realize technological progress via modern capital, they understand the importance of utilizing and integrating technological innovation and increase the efficiency of transforming new technology into productivity. Policy orientation should be attentive to the public welfare of these listed companies and take into account the demands of corporate profits to realize the long-term sustainable development of enterprises and regions.

How to manage financial performance through the utilization of intellectual capital (IC) is an important issue in the knowledge economy. The objective of this study is to investigate the impact of IC on financial performance for manufacturing listed companies in the Chinese context. Financial performance is measured from two distinct aspects: (1) firm profitability, measured through earnings before interest, taxes, depreciation and amortization (EBITDA), net profit margin (NPM), and gross profit margin (GPM), and (2) corporate return, measured through return on investment (ROI), return on assets (ROA), and return on equity (ROE). The results show a positive relationship between NPM, GPM, ROI, ROA, ROE, and IC (measured through the market-to-book ratio). In addition, the more intangible-intensive manufacturing listed companies exhibit better financial performance. The study provides evidence that higher investment in IC can improve value creation in the emerging economies. First published online 17 December 2020

We document that firms holding academic patents in their portfolios perform better in terms of market power since they benefit from academic knowledge spillovers generated by academic patents. On the other hand, we detect a negative effect on firms' short-term profitability imputable to a larger fixed cost associated to the acquisition and exploitation of these patents. In terms of policy, our analysis suggests focusing on company-owned academic patents. A set of economic incentives dedicated to university–industry knowledge transfer through academic patents could support integration between basic and applied research. [ABSTRACT FROM AUTHOR]

Large enterprises have been at the forefront of environmental management with active participation in industrywide programs and adoption of a 'beyond compliance' approach. The present study revisits the premise of environmental–financial linkage in an Indian context with a focus on large listed enterprises. We develop a comprehensive dataset of 459 large listed Indian companies covering major manufacturing and service sectors of the economy over an eleven-year period from 2008–09 to 2018–19. Static and dynamic regression models are used to gauge the impact of environmental management practices on firm profitability (Return on Assets and Return on Equity) and market valuation (Tobin Q, Market to Book Value Ratio and Excess Valuation to sales ratio). Empirical results suggest a positive impact of environmental management on firm profitability and market valuation. These results are of interest to corporate and policy makers for recognizing the financial implications of corporate environmental management. [ABSTRACT FROM AUTHOR]

The paper aims to examine the impact of human capital, capital structure choice and firm profitability of 48,673 Vietnamese construction firms in 2016. Measuring firm profitability by return on assets (ROA) or return on equity (ROE), the results demonstrated that using more debt in capital structure would positively increase the performance of the firm but this positive effect was increasingly declining. Moreover, evidence showed that human capital had a positive impact on the result of business activities. A larger size of a firm could positively boost firm performance. Regarding firm location, a firm locating in the metropolitan of Ho Chi Minh City had a higher level of performance than a firm locating in the metropolitan of Hanoi capital. Finally, operating status of the firm as well as the establishment of industrial park had insignificant impacts on firm profitability.

This research focused on exploring capital structure that would have an impact on the Vietnamese company’s profitability. Theoretically, we apply agency theory which mentions the separation of ownership and management, which leads to the problem when the managers act in their own interests rather than the owner’s interest. We built a research model, and the quantitative data was clarified thanks to the regression model with the data given by 300 Vietnamese firms for the period from 2012 to 2018. The findings indicated that firm profitability, represented by Return on Equity (ROE) and Return on Assets (ROA), was associated with liquidity and debt. In detail, it was indicated that there would be a positive relationship between liquidity and profitability of Vietnamese entrepreneurs, while there was a negative relationship between long-term debt and profit maximization. Moreover, the short-term loan also has a positive impact on the firm’s profitability in the context of Vietnam. These preliminary outcomes negated some previous research, confirming that the higher the leverage, the better the firm’s profitability. The difference in findings may provide information about a dynamic Vietnam market as well as the financial environment that require changes in the capital structure to gain the optimal profit.

Does firm lobbying in the EU increase firm profitability? While there is a well-established literature on this issue in the US context, existing EU studies have overlooked this question. Ours is the first study to examine links between firm lobbying and firm profitability. To this end, we tailor theoretical insights from the US context to the EU. While money plays a fundamentally different role in EU lobbying compared to the US, the lobbying context and legislative processes of the EU are conducive to firm lobbying efforts translating into firm profits. Our two-stage OLS regression results, using a novel dataset for 728 firms over a four-year period, support this argument. Specifically, we find that the more money firms channel into their lobbying activities, the more tangible returns on this investment they can expect. [ABSTRACT FROM AUTHOR]

This paper aims to study the performance implications of sustainable product attributes (SPA) of US manufacturing firms. Specifically, it analyzes the influence of aggregate and disaggregated SPA on firm profitability. The study further explores the moderating influence of marketing resource intensity on aggregate and disaggregated SPA and firm profitability relationships. The fixed‐effect regression analysis of 433 US manufacturing firms' panel dataset reveals that aggregate and disaggregated SPA positively influence the firm profitability. The moderation analysis also confirms the positive influence of marketing resource intensity on aggregate and disaggregated SPA and firm profitability relationship. The current paper contributes to the triple‐bottom‐line and theory‐of‐the‐firm literature streams by empirically studying the influence of aggregate and disaggregated SPA on firm profitability. Furthermore, this study uses the resource‐based view to complement theory‐of‐the‐firm model of SPA and empirically study the moderating role of marketing resource intensity between aggregate and disaggregated SPA and firm profitability. Finally, the findings inform the managers of the increased firm profitability by aggregate and disaggregated SPA, and the pivotal role of marketing resource intensity in strengthening the positive influence of aggregate and disaggregated SPA on US manufacturing firms' profitability. [ABSTRACT FROM AUTHOR]

In this study, we provide new evidence regarding return on equity and its components for firms recognized for their effective use of social media compared to firms that use social media to a lesser extent. Using the Russell 3000 firms, we compare firms' return on equity and sub components using difference in means tests and regression analysis. We find that firms recognized for their effective use of social media generate higher return on equity than other firms. Furthermore, when testing the disaggregation components, we find that the increased return on equity exhibited by firms using social media effectively is due to higher asset turnover and lower interest burden. We also find that such firms experience a higher tax burden. [ABSTRACT FROM AUTHOR]

The aim of the paper is to analyze the simultaneous influence of environmental risk, corporate strategy and financing strategy on firm profitability. Data for the period of 2013-2019 was collected from COMPUSTAT and respective Stock exchanges. The sample consists of a total of 4837 publicly traded firms from South East Asian Countries. Using fixed effects model, the findings of the study revealed that independent constructs explain significant variation in firm profitability. These findings are helpful for managers in formulating better strategies particularly those that are concerned with addressing the volatility and uncertainty dimension of the environment as well as resource development for supporting their decisions related to strategy formulation.

Research on the impact of environmental management practices (EMPs) on financial performance of firms to date has ignored the moderating role played by environmental cost-efficiency (ECE) and environmental liability. Despite the increasing interest in examining the environmental stance in the corporate world, there is lack of evidence on the reactive and proactive environmental management of Indian business entities and their impact on their profitability. This paper explores the EMPs of firms listed on S&P BSE GreenEx and CarbonEx. Content analysis is used to collect data on EMPs and pilot study is conducted in five experimental rounds to test the reliability of the coded categories by three coders, two academicians holding expertise in environmental sciences and the author. Coded categories are used as independent variables. Moderating variables viz. ECE and environmental liability are found to be intensifying the statistically significant negative effect of proactive and reactive EMPs on firm profitability. Findings clearly refute the ‘win-win’ hypothesis.