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Purpose: As businesses keep investing substantial resources in developing business analytics (BA) capabilities, it is unclear how the performance improvement transpires as BA affects performance in many different ways. This paper aims to analyze how BA capabilities affect firms' agility through resources like information quality and innovative capacity considering industry dynamism and the resulting impact on firm performance. Design/methodology/approach: This paper tested the research hypothesis using primary data collected from 192 companies operating in Bangladesh. The data were analyzed using partial least squares-based structural equation modeling. Findings: The results indicate that BA capabilities improve business resources like information quality and innovative capacity, which, in turn, significantly impact a firm's agility. This paper also found out that industry dynamism moderates the firms' agility and, ultimately, firms' performance. Practical implications: The contribution of this work provides insight regarding the role of business analytics capabilities in increasing organizational agility and performance under the moderating effects of industry dynamism. Originality/value: The present research is to the best of the authors' knowledge among the first studies considering a firm's agility to explore the impact of BA on a firm's performance in a dynamic environment. While previous researchers discussed resources like information quality and innovative capability, current research theoretically argues that these items are a leveraging point in a BA context to increase firm agility. [ABSTRACT FROM AUTHOR]

This study examines the relationship between country-level corruption (proxied by the Corruption Perception Index, CPI) and firm performance (measured by Return on Assets, ROA) across 18,286 firms in the East Asia, South Asia, and Southeast Asia regions. Additionally, the moderating effects of audit quality (proxied by auditors' reputation) on the relationship are examined. The findings of the study indicate a positive association between corruption and ROA in high-income nations, thus providing evidence in favor of the "greasing the wheel" theory. On the other hand, a negative association is documented in the upper middle- and low-income nations, which is consistent with the "sanding the wheel" notion. Notably, audit quality has a positive moderating influence on the relationship between corruption and ROA, especially in nations with low corruption levels, reaffirming the pivotal role of reputable auditors in enhancing firm performance within these economic contexts. The results of this study have important ramifications for forming policy suggestions and enhancing governance. The findings highlight the opportunity to improve governance practices and regulations to reduce corruption and increase transparency. Policymakers can develop ways to strengthen institutional frameworks by recognizing the complex link between corruption, corporate profitability, and the function of respected auditors. [ABSTRACT FROM AUTHOR]

From the perspective of firm capability, this study explores the impact of digital intelligence transformation and management innovation on the performance and sustainable development of Chinese firms. On the basis of constructing an evaluation index system of firm digital intelligence transformation and management innovation, a comprehensive evaluation model of firm digital intelligence transformation and management innovation is constructed via the analytic network process (ANP) and fuzzy comprehensive evaluation method. Taking Chinese film and television firms as an example, this study selects 160 data samples from 85 firms and constructs a structural equation model to empirically analyze the impact of digital intelligence transformation and management innovation on the performance of firms. The study results show that, in the context of digitalization and intelligence, firm digital intelligence capability and dynamic capability have a significant positive effect on firm performance. Firm digital intelligence transformation and management innovation directly impact performance and can play a role through firm digital intelligence capability and dynamic capability as intermediaries, and the chain intermediary effect of digital intelligence capability and dynamic capability is significant. The research results show that firm digital intelligence and dynamic capabilities provide a functional path for firm digital intelligence transformation and management innovation to improve performance. Moreover, the innovative application of digital intelligence technology has an important impact on the sustainable development of firms. Digital transformation and management innovation can help firms enhance their ability to manage environmental uncertainties, improve firm performance and foster the achievement of sustainable development goals. [ABSTRACT FROM AUTHOR]

Purpose: considering the resource-based view, embracing green supply chain management (GSCM) influences a firm's performance (FP). This study finds the nexus between GSCM and FP by analyzing the reporting trends among the authors, countries, and sources along with collaboration among countries and authors, the emerging topics, and different themes in this field with their impact, centrality, and density. Lastly, it probes into the different methodologies, affiliating concepts, influencers, drivers, and impacts of GSCM through content analysis. Design/methodology/approach: this paper spotted 1518 documents narrowed down to 938, pertinent to GSCM and performance, utilizing the Scopus database. It uses sources, authors, word analysis, coupling, network analysis of keywords, social structure, and conceptual structure analysis in the Biblioshiny package of Rstudio (Version 4.4.0) to identify the progress in the fields spanning through the decade (2014–2023). Moreover, content analysis has been used to study the concepts and contexts of different themes identified through thematic analysis. Findings: the study found Journal of cleaner production in sources, Sarkis in authors, and China in countries to have the highest no. of documents. Closed-loop, digital, and circular supply chains and Industry 4.0 have been identified as the trending topics. Moreover, the key themes identified are (1) Supply Chain Optimization Models for Sustainability, (2) Affiliating concepts to, and the relationship between, Sustainable Supply Chain Strategies and TBL Performance in Manufacturing Sectors of Developing Countries, (3) Life Cycle Analysis of Natural-Resource Based Supply Chains for Sustainability Assessment on TBL, and (4) Factors Influencing and Performances Impacted by GSCM. Originality/Value: this research adds to the previous literature by analyzing both the concepts of GSCM and FP collectively, and finding new themes in between their intersection. Implications: it will direct future researchers in choosing the right theme, methodology, intervening variables, affiliating concepts, and country and author collaboration for the fields related to GSCM and FP. [ABSTRACT FROM AUTHOR]

In this study, we advance a more nuanced view of gender-based stereotypes about female chief executive officers (CEOs) to shed light on the divergent findings about outcomes associated with their firms' actions. We draw on gender stereotyping literature and its delineation between prescriptive and descriptive gender stereotypes— how women ought to be/act versus how they actually are/act—to theorize that not all female CEOs embody the same prescriptive feminine ideals and, thus, variance in how they are perceived may affect outcomes manifesting from certain firm actions. Specifically, we theorize that there also exists a "double-edged" sword among female CEOs such that the more a female CEO is seen as descriptively aligning with prescriptive ideals of feminine actions and perceptions, the stronger the associated outcomes for their firms will be, whether positive or negative. We test how perceptions of communality and attractiveness—the two most desirable prescriptive perceptions for how women ought to be—affect the corporate social responsibility (CSR) and irresponsibility (CSiR) to firm performance relationship, which align, or fail to align, respectively, with desirable prescriptive feminine actions of helping or hurting others and society. We find that the more a female CEO descriptively aligns with such communality and attractiveness prescriptions, the stronger the CSR and CSiR to firm performance relationship will be. The results of our study suggest that the gendered beliefs to which female CEOs are subjected are more nuanced and complex than the current literature explains, contributing to theory and practice alike. [ABSTRACT FROM AUTHOR]

This paper studies the impact of top management team (TMT) age diversity on firm performance during the COVID-19 pandemic. We argue that age-diverse TMTs have a combination of various experiences that lead to creative problem solving and that this creativity supports firms in addressing the unique problems created by COVID-19 (e.g., remote work). Overall, we find that age-diverse TMTs improve firm performance during the COVID-19 pandemic. Further analyses indicate that age diversity is more likely to improve performance for firms subject to significant pandemic pressures (e.g., firms with high physical investment activity). This finding is in contrast to the fact that we find innovative firms do not benefit as much from age diversity, perhaps because these firms were more prepared for the COVID-19 pandemic and therefore required less creative leadership. Finally, we find that firms with inclusive cultures best facilitate the implementation of TMT age diversity. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G30; M41; M14; M12; L25. [ABSTRACT FROM AUTHOR]

This study employs a panel data model to examine the impact of sustainable business practices on profitability in the Indian market, focusing on 49 companies listed in the S&P BSE ESG 100 index from 2015 to 2022. Sustainable business practices are measured by ESG composite scores and individual environmental, social, and governance scores. Profitability is represented by return on equity and return on assets. Utilizing the Panel Corrected Standard Error technique to address data issues like autocorrelation and heteroscedasticity, the study finds that sustainable business practices insignificantly impact profitability. However, the social pillar has a significantly positive correlation with return on assets, with each unit improvement in the social score resulting in a 0.1323 increase in return. Conversely, the governance pillar negatively impacts return on assets, with each unit increase in governance score resulting in a decrease of 0.1527 units in profitability. Interestingly, larger companies experienced reduced returns on both assets and equity, as financial risk also lowered returns. These findings emphasize the relevance of companies’ socially responsible behavior, suggesting that managers and investors should prioritize sustainable practices for long-term benefits. Additionally, the findings advocate for robust regulatory frameworks focused on sustainability.

Purpose – This paper studies the association between earnings opacity and corporate social responsibility disclosures of firms listed on the Vietnamese Stock Exchange. Design/methodology/approach – We utilize a dataset comprising a sample of all listed Vietnamese firms for the period of 2014–2022. Data regarding corporate social responsibility information are gathered manually. Following Dechow et al. (1995), Kothari et al. (2005) and Bhattacharya et al. (2003), earnings opacity is measured by using three proxies, including abnormal accruals, earnings smoothing and loss avoidance. Our hypothesis was tested via ordinary least squares (OLS) regressions. To address endogeneity problems, we use the two-stage instrumental variable method (IV-2SLS) as well as the generalized method of moments (GMM) to ensure the robustness of our results. Findings – We find that earnings opacity is positively related to corporate social responsibility disclosures. Cross-sectional analyses indicate that managers of firms disguise their opportunistic behaviour by disclosing more information about corporate social responsibility. The evidence also shows that firms experience long-run underperformance when having higher earnings opacity and greater sustainability disclosures. Our results remain robust even after correcting for endogeneity using the IV approach and the GMM method. Practical implications – Evidence from this study can serve as a warning signal to the investment community, highlighting that some methods aimed at enhancing a firm’s corporate social responsibility disclosures might be used to obstruct other unethical activities. Moreover, the results of this study can help regulators gain a better comprehension of firms' reporting patterns concerning corporate social responsibility initiatives. It should not only reform the corporate social responsibility regulation but also impose stronger litigation for firms to enhance the quality of corporate social responsibility disclosures. Originality/value – We are the first to present evidence regarding the relationship between earnings opacity and corporate social responsibility disclosure in Vietnam.

ObjectiveGiven that managers play a crucial role in grounded and old theories such as agency theory, stewardship theory, and contracts theory, the concept of managerial ability and its measurement has attracted the researchers' attention. Recent dominant perspective emphasizes that manager's ability is reflected in the firm's performance. Therefore, measuring managerial ability depends on the separation of the manager's performance from the firm's performance, and the more the manager's contribution to the company's performance, the higher ability he/she has. The current study seeks to develop a model to measure managerial ability, taking into account the unique circumstances of the country in which the companies operate.MethodsTo develop a model for measuring managerial ability, a comprehensive approach is applied including systematic literature review, interpretive analysis of interviews with experts, and a descriptive method. In systematic literature review domestic and foreign studies and reliable information sources and databases is applied based on specific related keywords. Additionally, interviews with experts such as executive managers, financial managers, internal and external auditors, and academics were analyzed using interpretive analysis based on chain sampling. To run and validate the designed model, data from 158 firms listed on the Tehran Stock Exchange (TSE) across 12 industries from 2012 to 2021 is used. Triangulation was employed to evaluate the research validity, considering multiple dimensions including methodology, data, and the researchers. This rigorous approach ensures the reliability and robustness of the model developed for measuring managerial ability. ResultsAccording to the research findings, we focus on three areas of performance indicators (PI), namely operational, financing, and dividend performance indicators. The performance indicators, as dependent variable, represent different aspects of firm performance based on managers decision-making process and the status of firms in real world. Variables such as firm size, firm age, the percentage of active institutional shareholders, export sales, and transactions with related parties represent the inherent characteristics of each company as independent variables. Considering environmental conditions and performance indicators are very important in determining related variables. By running Tobit regression, the residual value is considered as managerial ability measurement or managers’ contribution in firm performance. Furthermore, the comparison of the designed model and the model developed by Demerjian et al. (2012), as the most widely used model in prior literature, in terms of log-likelihood and information criteria including Akaike Information Criterion (AIC), Schwarz Criterion (SC), and Hannan-Quinn Criterion (HQ) at the overall and industry-specific levels shows that our model has higher goodness-of-fit.ConclusionGenerally, by combining operational, financing, and profit distribution indicators, as well as taking into account shareholder structure and intra-group transactions, this model provides a more proper measurement of managerial effectiveness and it can be a basis for selecting managers and determining appropriate remuneration methods.

We investigate the effect of COVID-19 pandemic on firm performance using the quarterly financial data of firms from 89 countries and show that the pandemic has a detrimental impact on firm performance. The firms that held more long-term debt and account receivables on their balance sheet before the pandemic were relatively more affected amid the pandemic. The cash buffers can make firms more resilient to the COVID-19 crisis. The quality of a country's governance plays a vital role in mitigating the adverse impact of the pandemic on firm performance.

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.

Inventory management is an indispensable element of the firm's operational efficiency that determines the results of its activity and its long-term performance. The present study aims to analyze the influence of efficient inventory management on the performance of firms in the Wholesale and Retail trade sector, trying to isolate this relationship in order to bring out as many peculiarities as possible. In order to achieve the aim, fixed effects panel linear regression analysis was undertaken, applying the least squares dummy variables method. The regression models were constructed separately for the dependent variables of Gross Margin and Gross operating surplus as proxies for performance, and separately for the three datasets: Wholesale and Retail trade, Wholesale trade and Retail trade. The results of the analysis reveal the existence of significant relationships between inventory management and firm performance. The significant relationships identified did not confirm the expectations, although were validated by previous results identified in the literature.

The government sets legal limits on the number of working hours to minimize the negative effects of long working hours. Reducing legal working hours increases employee life satisfaction by decreasing mental and physical health problems. However, reducing legal working hours may decrease the firm's future investment opportunities, which reduces the firm's competitiveness. This study uses a quasi-experimental design to explore the negative effects of reducing legal working hours on firms. Specifically, we build a difference-in-differences (DID) model to explore the negative effects of reducing legal working hours on a firm's ROI and innovation. We find reducing legal working hours decreases a firm's ROI and innovation. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to analyze the direct and indirect effects of investor protection on forced CEO turnover. Design/methodology/approach: The authors investigate 5,175 firm-year observations from 16 European countries over 2012–2018, collect data on four national investor protection indicators, identify 196 forced CEO turnovers and use multiple logistic regression models. Findings: The results show that a reduction in the degree of investor protection significantly increases the probability of a forced change of the company's CEO. Furthermore, when the degree of investor protection increases, directors are attributed a lower degree of responsibility in the event of a decline in earnings performance. Therefore, the relation between a decrease in profitability and a forced change of CEO is reduced. Research limitations/implications: The research is focused on countries belonging to the European Economic Area and most of the investor protection indicators are derived from surveys. Concerning policy implications, the findings suggest that regulators should focus on the effective enforcement of investor protection mechanisms. Social implications: The results confirm that characteristics at the country level have an impact on corporate decisions, highlighting the importance of increasing the degree of investor protection as a means of mitigating agency conflicts and improving stewardship. Originality/value: To the best of the authors' knowledge, this study explores a relatively underinvestigated topic as it uses investor protection indicators to jointly evaluate both direct and indirect effects on forced changes of CEO through cross-national research. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to present a comprehensive theoretical framework that seeks to explore the impact of cultural, legal and social factors within the external environment on the relationship between women on corporate boards and firm performance. By investigating these boundary conditions, the paper aims to shed light on how these pressures influence the aforementioned relationship. Design/methodology/approach: To build the sample of companies, the authors selected companies listed on the stock exchanges of countries that represent a diverse range of institutional contexts. These contexts encompass countries with individualistic cultures, collectivist cultures, environments with mandatory gender quotas, environments without gender quotas, contexts with substantial progress toward gender equality and contexts with limited progress in achieving gender equality. To test the hypotheses, the authors used linear regression analysis as a primary analytical approach. Furthermore, they used the propensity score matching technique to address potential issues of reverse causality and unobserved heterogeneity. Findings: The findings indicate that the positive influence of a critical mass of women on corporate boards on firm performance is contingent upon the institutional context. Specifically, the authors observed that this relationship is strengthened in institutional contexts characterized by an individualistic culture, whereas it is not as pronounced in collectivist cultural contexts. Furthermore, this research provides compelling evidence that the presence of a critical mass of women on boards leads to enhanced firm performance in institutional settings where gender quotas are not binding, as opposed to settings where such quotas are enforced. Lastly, the results demonstrate that the presence of a critical mass of women on boards is associated with improved firm performance in institutional settings characterized by low progress in achieving gender equality. However, the authors did not observe the same effect in institutional contexts that have made significant strides toward gender equality. Originality/value: This research offers a unique perspective by investigating the relationship between women's presence on corporate boards and firm performance across different institutional contexts. In this investigation, the authors recognize that gender diversity on corporate boards is not a one-size-fits-all solution and that its effects can be shaped by the unique institutional contexts in which companies operate. [ABSTRACT FROM AUTHOR]

This inquiry investigates the moderating role of board size (BS), board independence (BI), and board gender diversity (BGD) on the relationship between dividend policy (DP) and firm performance (FP) in Ghana. The study utilized financial data from 14 purposively selected listed firms in Ghana, spanning 2010–2018. A system-generalized method of moments (GMM) was espoused for the estimation. Results indicate that whilst dividend per share and dividend payout ratio demonstrated significantly positive relationship with FP, dividend yield exhibited significantly negative relationship with FP. Additionally, while BI moderated the relationship between DP and FP, BS and BGD had no moderating influence on FP. [ABSTRACT FROM AUTHOR]

This study was examined to determine the impact of content marketing strategy and customer engagement in social media on the firm performance of selected small and medium enterprises (SMEs) in Tagum City, Davao del Norte. A total of 229 managers and owners of businesses in Tagum City, Davao del Norte, were chosen to participate in the study. Research questionnaires were adapted as an instrument in a quantitative, non-experimental study employing correlational methodology. Standard deviation, Pearson-r, mean, and regression analysis are the statistical methods engaged in this study. Based on the results, it was found that the respondents had a high level of content marketing strategy, a high level of customer engagement in social media, and a very high level of firm performance. This study discovered a significant relationship between content marketing strategy and firm performance. In addition, a significant relationship between customer engagement in social media and firm performance was determined. In addition, content marketing strategizing context, content production context, content marketing performance measurement context, and content marketing organization domains all had a substantial impact on firm performance. Similarly, the cognitive dimension, emotional dimension, and behavioral dimension domains all influenced firm performance. Finally, the study supported by the Resource-Based View (RBV) Theory serves as the main theory, the supported theories are Social Exchange Theory, Marketing Performance Measurement Theory, and Technology Acceptance Model (TAM) are the supporting theories. [ABSTRACT FROM AUTHOR]

The current research tended to examine the impact of social media usage on firm performance with the mediating role of organizational agility and innovation capability. The methodology used was descriptive correlation with structural equation modelling. For this purpose, 148 managers, deputies and experts of the German automotive industry participated in the study. Data collection was conducted using a questionnaire while analysis of the data utilized the structural equation modeling based the partial least squares method. The findings suggest that social media usage has a substantial and positive impact on innovation capability, organizational agility, and firm performance. Additionally, innovation capability has a notable positive influence on organizational agility and firm performance. Furthermore, organizational agility significantly contributes to firm performance. Both innovation capability and organizational agility play an important mediating role in the relationship between social media usage and firm performance. Moreover, innovation capability acts as a mediator between social media usage and organizational agility, while organizational agility mediates the effect of innovation capability on firm performance. Thus, it can be inferred that social media usage facilitates improvements in firm performance by enhancing organizational agility and innovation capability. [ABSTRACT FROM AUTHOR]

Purpose: Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to provide insights into how AI creates business value by investigating the mediating role of Business Process Management (BPM) capabilities. Design/methodology/approach: The integrative model of IT Business Value was contextualised, and structural equation modelling was applied to validate the proposed serial multiple mediation model using a sample of 448 organisations based in the EU. Findings: The results validate the proposed serial multiple mediation model according to which AI adoption increases organisational performance through decision-making and business process performance. Process automation, organisational learning and process innovation are significant complementary partial mediators, thereby shedding light on how AI creates business value. Research limitations/implications: In pursuing a complex nomological framework, multiple perspectives on realising business value from AI investments were incorporated. Several moderators presenting complementary organisational resources (e.g. culture, digital maturity, BPM maturity) could be included to identify behaviour in more complex relationships. The ethical and moral issues surrounding AI and its use could also be examined. Practical implications: The provided insights can help guide organisations towards the most promising AI activities of process automation with AI-enabled decision-making, organisational learning and process innovation to yield business value. Originality/value: While previous research assumed a moderated relationship, this study extends the growing literature on AI business value by empirically investigating a comprehensive nomological network that links AI adoption to organisational performance in a BPM setting. [ABSTRACT FROM AUTHOR]

We develop and test a multi‐stakeholder perspective of intrafamily CEO succession by exploring how family CEO successors affect post‐succession firm performance under conditions of sustainable human resource management (sustainable HRM) practices toward employees and top managers, as well as corporate philanthropic activities in the broader community. Using a sample of 414 CEO successions in family firms listed on China's stock exchanges during 2008–2016, we find an insurance‐like effect of both sustainable HRM and corporate philanthropy in enhancing firm performance of family CEO successors. Our results also show that firms with family CEO successors will outperform those with nonfamily counterparts under conditions of high employee compensation, low top management team (TMT) compensation, and long TMT tenure. Our findings suggest that sustainable HRM and corporate philanthropy complement rather than substitute in strengthening family leadership during CEO succession. [ABSTRACT FROM AUTHOR]

Firms often assemble digital infrastructures using continuously evolving software applications sourced from a multitude of vendors. Using the theoretical lens of the threat-rigidity thesis, we raise the possibility that during adverse environmental conditions, software-vendor diversification can be a source of organizational rigidity that may dampen firm performance. Empirical analysis using data on 918 large public U.S. firms operating during two severe environmental shocks, the global financial crisis and the burst of the dot-com bubble, lends strong support to our thesis. Results indicate that a variety of firm performance indicators (e.g., stock return and operating income measures) are negatively associated with software-vendor diversification during crisis periods. Mediation analysis highlights the role of IT-related material weakness in firms' internal controls in transmitting threat-rigidity effects that decrease performance. These results underscore the importance of software portfolio optimization for countering the dysfunctional effects of software-vendor diversification during adverse environmental shocks. [ABSTRACT FROM AUTHOR]

In recent years, there has been a dramatic increase in the hard-freezing of defined benefit pension plans. Although cost savings associated with a pension freeze are expected to lead to improved future performance, prior studies do not provide conclusive empirical evidence to support enhanced firm performances following pension freezes. In this study, we examine how firms' commitment to corporate social responsibility (CSR), especially their commitment to employee relations, affects their decision to freeze pension plans, and how firms' CSR activities affect the association between the pension freeze and their post-freeze performance. First, we find no evidence that firms with a high overall CSR score are less likely to freeze their pension plans, but we find supporting evidence that firms with a high CSR score on the employee relation aspect are less likely to freeze their pension plans. In addition, we find that the pension freeze has a positive impact on the firm's future performance, as measured by the return on assets, for the firms with high CSR scores. [ABSTRACT FROM AUTHOR]

The study explored the affinity between corporate governance (CG) norms and bank financial performance using data compiled from the annual reports of Dhaka Stock Exchange-listed commercial banks in Bangladesh covering a period from 2016 to 2022. Both descriptive and inferential statistics capture the effects of CG norms on the financial performance of banks. The fixed effects model (FEM) results revealed that board independence, educational qualifications of CEOs, and long-serving CEOs are positively linked with the financial performance (measured as ROA) of banks in Bangladesh but are not statistically significant. The board meeting frequency is inversely and significantly related to ROA. Banks should ensure the enactment of sound CG norms to enhance banks' financial performance and protect the shelter less tiny shareholders. The regulatory authorities must ensure compliance with CG norms and enforce penalties for non-compliance to support the banking industry's growth. The study aspires to strengthen CG norms, which go beyond the rights and duties of various stakeholders in the management of a firm. The affinity between fund providers and the bank and its compliance with legal, ethical, and environmental needs, among other things, significantly contributed to expanding our knowledge base, both in theory and in reality.

In this study, we examine how entrepreneurs’ perception of the national and local economy affects the entrepreneurial activity in U.S. states. We also look into the impact on small business owners’ outlook for the future and on their firm’s performance. Does the status of the economy affect small business owners’ optimism, their activities, and their success? We find that although the perception of the economy does not have an impact on the entrepreneurial activity in a state (as measured by the number of new startups), it has a significant impact on both small firms’ performance and small business owners’ outlook for the future. In the states where the business owners have a more positive view on the national economy, small firms are more successful and their owners are more optimistic in terms of their plans for future hiring. In the states where the business owners have a more positive view on the local economy, small firms are more successful and their owners are more optimistic in terms of encouraging others to start a business in their state. We also find that the states with a higher percentage of owners showing their business as primary employment tend to have significantly more entrepreneurial activity when compared to the other states.

Purpose – This research is designed to analyze the effectiveness of the audit committee, nomination and remuneration committee, and ownership structure on company performance and how COVID-19 moderates the influence of these governance mechanisms on company performance. Design/methodology/approach – 437 annual reports of Indonesian manufacturing companies from 2018 to 2021 were used as research samples using multiple regression analysis and moderated regression analysis. Findings – Good corporate governance plays a role in improving company performance. The presence of COVID-19 affects corporate governance, thereby reducing performance, but good corporate governance can limit this impact. Practical implications – This research helps companies understand the effectiveness of the supervisory function in improving company performance. This research provides input for companies, regulators, and policymakers to pay attention to good corporate governance, especially when facing a crisis. Originality/value – To my knowledge, research that examines corporate governance mechanisms and company performance related to COVID-19 and investigates whether COVID-19 moderates the influence of corporate governance mechanisms on company performance has never been conducted.

Abstract Our study delved into an analysis of 128 public companies in Ghana, Kenya, and Nigeria to explore the influence of diversified board expertise on firm performance. We also investigated the impact of firm size and age on this relationship. Our results indicate that a varied blend of professional experts on corporate boards significantly boosts a company's ROA, although there is no significant effect when Tobin's Q measures firm performance. Nevertheless, we discovered that combining firm size and age negatively impacts the correlation between board expertise diversity and firm performance. Our findings support the significance of integrating agency, resource dependence, and convergence theories, implying that businesses can improve their financial performance by including an appropriate mix of expertise on their boards, especially for relatively younger small-sized firms. In contrast, more prominent and ageing firms may not see the same financial benefits. Consequently, we recommend that corporate executives and practitioners consider implementing board expertise diversity to enhance their firms' financial performance.

Scholarly attention to the association between corporate governance and firm performance, considering sustainability assurance as a moderator is scarce. This study aims to examine the moderating role of sustainability assurance in the nexus between corporate governance and firm performance in India. The data relating to 35 environmentally sensitive companies among the top 100 National Stock Exchange (NSE) listed entities were gathered from the ProwessIQ Database and annual reports of companies during 2016–2022. The fixed effect regression model was employed. The results show an insignificant effect of board effectiveness on firm performance as measured by return on assets (ROA), return on equity (ROE), and Tobin’s Q. Similar findings were documented on the audit committee effectiveness and firm performance nexus, except for Tobin’s Q (β = 0.316). In addition, the study did not support the moderating role of sustainability assurance on the board effectiveness and firm performance nexus, indicating the presence of ineffective corporate governance mechanisms. However, the results show that sustainability assurance significantly and negatively moderates the relationship between audit committee effectiveness and ROA (β = –0.021), ROE (β = –0.074), and Tobin’s Q (β = –0.996). This implies that the practice of external assurance of sustainability reports by firms with audit committee effectiveness is an additional burden due to the extra cost involved. Further, the result indicates the learning curve effect among Indian companies. Thus, the findings suggest the need for regulatory focus on encouraging sustainable business practices in terms of effective corporate governance and sustainability assurance. AcknowledgmentThe authors are grateful to Manipal Academy of Higher Education (MAHE), Manipal, for providing financial assistance in the form of a “JRF Contingency Grant” for this research article.

Abstract This research is important for both the academic and business environments due to the extraordinary results obtained. Additionally, the significance of the study is also attributed to the addressed topic, which is intensively studied in the world of corporate finance. The primary aim of this research is to scrutinize a cohort of 66 information and technology (IT) companies, all of which are constituents of the American Standard and Poor’s 500 Index (S&P 500). The study period spans two decades, covering the years 2003–2022. To summarize the outcomes, the analytical framework incorporated linear models with both fixed (fe) and random effects (re), as well as quantile regression models. This study's key outcomes highlight that firm size, sales growth, current ratio, long-term debt to capital, free cash flow, asset turnover and receivable turnover, board meeting frequency, female board representation, chief executive officer age, audit committee independence, and the presence of compensation and nomination committees, alongside a pandemic indicator, positively impact firm performance. Conversely, firm age, dividend payout ratio, effective tax rate, board size, chief executive officer duality, and corporate social responsibility committee presence have negative effects on performance. Also, regarding quantile regressions, CEO duality significantly influences companies with high profitability rates, and companies with low to medium profitability rates are more strongly and negatively influenced by board size. The implications of the core policy in this research focusing on corporate governance will consider certain rules and guidelines regarding financial transparency and protecting shareholders' interests. Additionally, it will take into account the independence of the board of directors and the presence of its committees, as well as ethical leadership practices.

The ownership structure in Japanese firms has experienced a significant change recently, fueled primarily by regulatory changes. This has important repercussions on corporate performance and risk. This paper examines the impact of insider ownership on the default risk of Japanese firms. We collected data from the Nikkei Corporate Governance Evaluation System (CGES) database for the period 2004–2019. Our final dataset yields 36,116 firm-year observations. We apply a firm fixed effect model for baseline regression. Endogeneity was checked by applying propensity score matching (PSM) and two-stage least squares (2SLS) techniques. Furthermore, the robustness of baseline regression results was checked using alternative estimation techniques. Results show a significant positive influence of insider ownership on default risk. Furthermore, ROA volatility and stock price volatility appear to be the major channels through which insider ownership affects a firm’s default risk. We further document that external monitoring mechanisms, including traditional main bank ties, institutional ownership and analyst coverage, are the key risk-mitigating factors. Our research deals with Japanese firms only. Future research may attempt to analyze the cases of emerging economies. Furthermore, future research might examine the ownership-default risk relationship for financial institutions to see if this relationship differs between financial and nonfinancial firms. Insider ownership enhances the probability of default. Hence, policymakers may consider instituting a ceiling for insider ownership in Japanese firms. Moreover, we highlight various risk-mediating channels that would help policymakers adopt guidelines for mitigating corporate risk. Our study is the first to investigate the effect of insider ownership on default risk in Japanese settings. Prior studies identified various determinants that affect firms’ default risk. Our study contributes to this stream of literature by examining the impact of insider ownership on default risk and extending the limited literature related to insider ownership.