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We examine whether and how research and development (R&D) mediates the association between environmental, social, and governance (ESG) pillars and corporate efficiency among companies within the supply chain of Microsoft Corporation from 2012 to 2020. An estimation of corporate efficiency using data envelopment analysis (DEA) indicates that companies should first improve their innovational efficiency (mean DEA score = 0.371), then operational efficiency (mean DEA score = 0.659), and finally profitability efficiency (mean DEA score = 0.695). Moreover, a mediation analysis confirms the mediating role of R&D intensity. Overall, R&D should be one of the spotlights in the supply chain amidst the highlights on ESG in this dynamic and challenging business world for companies to achieve sustainable development goals. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the relationships among International Financial Reporting Standards (IFRS) adoption, earnings management, and corporate efficiency. Design/methodology/approach: First, the authors employ the epsilon-based measure (EBM) of the data envelopment analysis to measure the corporate performance of the Taiwanese electronics industry from 2011 to 2014. Second, the authors regress the IFRS adoption and earnings management on corporate efficiency. Findings: The findings show that the corporate efficiency deteriorated after IFRS adoption. Although the regression analysis shows that the relationship between earnings management and corporate efficiency is significantly positive, the authors find that IFRS adoption is effective in unveiling earnings management. Moreover, IFRS adoption moderates the impact earnings management and corporate efficiency. Research limitations/implications: This study provides reference for decision-makers in the application of accounting principles and in the understanding of the IFRS impact adoption. Practical implications: IFRS adoption can either facilitate or limit the earnings management that would affect corporate efficiency significantly and help the electronics industry as well as investors to know the changes in accounting principles and their effects on corporate efficiency. Originality/value: The authors use the EBM of efficiency model to measure corporate efficiency and employ the modified Jones model to measure earnings management. [ABSTRACT FROM AUTHOR]

As global ecological degradation intensifies, a trade‐off has arisen between environmental protection and production efficiency to achieve sustainable development for the environment, society, and the company itself. However, the potential reverse causality relationship between environmental, social, and governance (ESG) and corporate efficiency may lead to confusion. This study estimates the eco‐efficiency of Apple Incorporated's value‐chain counterparts in the first stage and creates values and profitability in the second stage of efficiency evaluation. Results obtained from the (i) directional distance function in the two‐stage data envelopment analysis (DEA), (ii) additive efficiency decomposition two‐stage network DEA model, and (iii) network slacks‐based measure model are consistent. That is, Apple counterparts manage more efficient eco‐efficiency than profitability efficiency, implying that eco‐efficiency is their competitive advantage. We thus also run a regression analysis to examine how the ESG ratings of Apple counterparts explain their eco‐efficiency and profitability efficiency. Although the overall ESG rating positively explains the efficiencies, we found that the individual governance rating shows no statistically significant effect. The regression results provide insight for practitioners on the importance of investing in the three aspects of a firm's collective conscientiousness for societal and environmental governance. This paper integrates companies' eco‐efficiency and profitability efficiency to resolve the conflict between environmental issues and production efficiency. It also analyzes in depth the effects of ESG and its three individual factors on eco‐, profitability, and average efficiencies. The diversity of research methods also provides new ideas for future research related to firm efficiency. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This paper explores whether the recognition of asset impairments provides an opportunity for earnings management by examining changes in the performance. First, we apply a dynamic data envelopment analysis model to evaluate the operating performance of Taiwanese electronics firms for the period from 2004 to 2013. Statistical tests are next applied to assess the average efficiency variation between the periods before and after firms recognise asset impairments. Several empirical findings are as follows: managers recognise asset impairments when their firms have poor performance as compared to other firms that do not record any asset impairments recognition, and that their performance keeps on improving in both the year of recognising asset impairments and the year after asset impairments recognition. That is, managers tend to recognise asset impairments to improve operating performance, while the firms are performing poorly, supporting the opportunistic behaviour theory. [ABSTRACT FROM AUTHOR]

This paper establishes an industrial upgrading model by dividing the industrial upgrading process into two: the foundation–construction and industrial upgrading stages. Eighty‐one sample countries, from 2006 to 2012, were divided into two groups according to their degree of market freedom. The meta‐frontier method was employed to explore technology gaps in the groups caused by the different markets. It was found that emerging economies with a free market have a better upgrading performance than those with a restricted market, and the efficiency gap between the two groups was seen to be continually increasing. [ABSTRACT FROM AUTHOR]

This study explores the economic performance that vicarious warfare can bring for the aerospace and defence industry. First, this study measures the performance of 22 companies using a nonradial dynamic data envelopment analysis model from 2011 to 2017. Second, this study evaluates whether vicarious warfare can influence the performance. The efficiency analysis suggests rooms for improvements meanwhile, the projection analysis suggests that market value should be significantly increased, and the number of employees should be reduced significantly. The regression analysis suggests that the number of times a country takes a side in wars would positively affect the efficiency of companies. [ABSTRACT FROM AUTHOR]

This paper reconciles diverse efficiency measures to characterize the productivity efficiency of Taiwan's integrated circuits (IC) packaging/testing firms. Productivity efficiency ratings should be considered as a key element for achieving greater business performance and a better market position. This study applies the Data Envelopment Analysis (DEA) approach with the classical radial measure, non-radial efficiency measure and efficiency achievement measure, respectively, combining multiple outputs and inputs to measure the magnitude of performance differences between the IC firms. The empirical result reveals that the overall technical inefficiencies of the firms are primarily due to pure technical inefficiencies rather than scale inefficiencies. A scale problem really does exist in these IC packaging/testing firms, which can be treated as support for future mergers and acquisitions between the firms. The operating efficiency of the IC packaging/testing firms is negatively related to the market-entry time of these firms. In addition, the empirical results in this study indicate that the non-radial efficiency model and the efficiency achievement model can provide more discriminate efficiency measures for the IC firms, while the traditional radial efficiency model can rank the firms by their scale efficiencies as well as analyze the scale profits of the firms. [ABSTRACT FROM AUTHOR]