Growth expectations and financial performance of small businesses:evidence from Latvia

By applying regulatory focus theory, this paper investigates the impact of both initial confidence and of exactness of growth expectations on subsequent financial performance of the small firms. Drawing on the unique data set based on the repeated survey design, we make one of the first attempts to explore the complexity of this relationship empirically. Overall the findings suggest that controlling for other relevant factors, including actual growth, the entrepreneurs having higher growth expectations perform significantly better later on in terms of profitability. In addition, education has a strong modifying effect: the impact of high growth expectations on subsequent profit performance is stronger for entrepreneurs with lower level of education.

Executive remuneration, financial performance and corporate governance in UK and Spanish listed firms

This study examines the relationship between executive directors’ remuneration and the financial performance and corporate governance arrangements of the UK and Spanish listed firms. These countries’ corporate governance framework has been shaped by differences in legal origin, culture and backgrounds. For example, the UK legal arrangements can be defined as to be constituted in common-law, whereas for Spanish firms, the legal arrangement is based on civil law. We estimate both static and dynamic regression models to test our hypotheses and we estimate our regression using Ordinary Least Squares (OLS) and the Generalised Method of Moments (GMM). Estimated results for both countries show that directors’ remuneration levels are positively related with measures of firm value and financial performance. This means that remuneration levels do not lead to a point whereby firm value is reduced due to excessive remuneration. These results hold for our long-run estimates. That is, estimates based on panel cointegration and panel error correction. Measures of corporate governance also impacts on the level of executive pay. Our results have important implications for existing corporate governance arrangements and how the interests of stakeholders are protected. For example, long-run results suggest that directors’ remuneration adjusts in a way to capture variation in financial performance

Fare policies:a tool for imroving the financial performance of Malayan railway

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A hazai vállalatok pénzügyi teljesítményének alakulása 1994 és 2009 között = The financial performance of Hungarian firms between 1994 and 2009

Kutatásunkban Budapesti Corvinus Egyetem Vállalatgazdaságtan Intézete által az 1995 és 2010 között lebonyolított „Versenyben a világgal” kutatási program kérdőívei alapján a hazai vállalatok versenyképességét befolyásoló tényezőket vizsgáltuk. Eredményeink szerint a krízis hatására az adók versenyképességi jelentősége megnőtt, s – különösen a nagy visszaesést elszenvedőknél – gyakoribbak lettek a piac megőrzését célzó stratégiák. A válság hatását mélyítette, hogy a vállalatok devizakockázat-kezelése nem megfelelő, s a bankok sem tökéletesen szolgálják ki a vállalatok igényeit. Az utóbbi 10-15 esztendőben a késve fizetés egyre gyakoribb lett, s e trendet a válság csak erősítette. _____ Our paper investigates the factors influencing the competitiveness of the Hungarian enterprises based on the research questionnaires of the research program “Companies and competitiveness” of the Business Economics Department at Corvinus University of Budapest carried out between 1995 and 2010. Our results show that due to the crisis the role played by taxes in competitiveness has gained importance, and especially at firms suffering from heavy losses the strategies firstly aiming at keeping markets became more frequent. The effects of the global turndown have been amplified by the weak currency risk management of the Hungarian firms, and by the fact that the service provided by local banks is lagging behind expectations of the companies. During the last 10-15 years the late payment of receivables became more and more frequent in Hungary, a trend that has been even enforced by the depression.

Does Financial Performance Depend on Hotel Size? Analysis of the Financial Profile of the U.S. Lodging Industry

This research presents a financial profile of the U.S. Lodging Industry based on an analysis of 2,091 financial statements (fiscal year 2011) for individual hotels ranging in asset size of $500 thousand to $250 million. The study analyzes summary results of the financial position and profitability of hotels based on a common size analysis of Balance Sheets and Income Statements. Furthermore, the study analyzes 10 key performance benchmarks as measured by Liquidity, Solvency and Operating Ratios. The results of the study show a divergence in the hotel industry’s financial performance based on the size of the hotel and by upper, median and lower quartiles of the study sample.

Private Club Financial Performance

This article reveals the median financial results for the club industry for 2011 using 24 financial ratios. The results are based on the submission of balance sheet and selected income statement numbers from 80 clubs. The ratios are reported as median results for the entire sample as well as the median results for the top and low performing clubs delineated by return on assets. The biggest differences between the two extreme groups of clubs are (1) average collection period, (2) operating cash flows to current liabilities and long-term debt, (3) fines interest earned, (4) fixed charge coverage ratio, (5) food and beverage inventory turnovers, (6) profit margin, (7) return on assets, (8) operating efficiency ratio, (9) labor cost percentage.

From Customer-Oriented Strategy to Organizational Financial Performance: The Role of Human Resource Management and Customer-Linking Capability

Drawing on the organizational capabilities literature, the authors developed and tested a model of how supportive human resource management (HRM) improved firms’ financial performance perceived by marketing managers through fostering the implementation of a customer-oriented strategy. Customer-linking capability, which is the capability in managing close customer relationships, indicated the implementation of the customer-oriented strategy. Data collected from two emerging economies – China and Hungary –established that supportive HRM partially mediated the relationship between customer-oriented strategy and customer-linking capability. Customer-linking capability further explained how supportive HRM contributed to perceived financial performance. This study explicates the implication of customer-oriented strategy for HRM and reveals the
importance of HRM in strategy implementation. It also sheds some light on the ‘black box’ between HRM and performance. While making important contributions to the field of strategy, HRM and marketing, this study also offers useful practical implications.

Financial Analysis of the Pulp and Paper Industry: Performance and value creation of the world's pulp and paper companies

Tutkimuksen tavoitteena on analysoida 74 sellu- ja paperiyrityksen taloudellista suorituskykyä kannattavuutta, maksuvalmiutta, vakavaraisuutta ja arvonluontikykyä kuvaavilla tunnusluvuilla. Tutkimuksen teoriaosa esittelee liiketoiminta-analyysin välineet, jonka jälkeen esitellään taloudelliset tunnusluvut. Empiriaosassa käydään läpi vuoden 2005 tunnusluvut yritystasolla. Jotta voidaan tarkastella tunnuslukujen muutoksia pitkällä aikavälillä, yritykset ryhmitellään maantieteellisen sijainnin sekä liiketoimintaorientaation mukaan. Tutkimus on kuvaileva. Tunnusluvuista voidaan todeta sellu- ja paperiteollisuudessa meneillään oleva toimialan rakennemuutos. Eteläamerikkalaiset yritykset, jotka hyötyvät uudesta ja kustannustehokkaasta raaka-aineesta, ovat siirtyneet lähemmäs arvonluontia, kun taas suurin osa pohjoisamerikkalaisista yrityksistä, jotka olivat toimialan johtavia arvonluojia, ovat nyt arvon tuhoajia. Toimiala kärsii myös alhaisesta kannattavuudesta, joka vaikuttaa eniten pohjoisamerikkalaisiin yrityksiin. Samaan aikaan eteläamerikkalaiset yritykset ovat nostaneet kannattavuuttaan, mikä puolestaan korostaa meneillään olevaa muutosta.

The financial and environmental performance of firms exposed to the EU Emissions Trading Scheme

This thesis is an empirical-based study of the European Union’s Emissions Trading Scheme (EU ETS) and its implications in terms of corporate environmental and financial performance. The novelty of this study includes the extended scope of the data coverage, as most previous studies have examined only the power sector. The use of verified emissions data of ETS-regulated firms as the environmental compliance measure and as the potential differentiating criteria that concern the valuation of EU ETS-exposed firms in the stock market is also an original aspect of this study. The study begins in Chapter 2 by introducing the background information on the emission trading system (ETS), which focuses on (i) the adoption of ETS as an environmental management instrument and (ii) the adoption of ETS by the European Union as one of its central climate policies. Chapter 3 surveys four databases that provide carbon emissions data in order to determine the most suitable source of the data to be used in the later empirical chapters. The first empirical chapter, which is also Chapter 4 of this thesis, investigates the determinants of the emissions compliance performance of the EU ETS-exposed firms through constructing the best possible performance ratio from verified emissions data and self-configuring models for a panel regression analysis. Chapter 5 examines the impacts on the EU ETS-exposed firms in terms of their equity valuation with customised portfolios and multi-factor market models. The research design takes into account the emissions allowance (EUA) price as an additional factor, as it has the most direct association with the EU ETS to control for the exposure. The final empirical Chapter 6 takes the investigation one step further, by specifically testing the degree of ETS exposure facing different sectors with sector-based portfolios and an extended multi-factor market model. The findings from the emissions performance ratio analysis show that the business model of firms significantly influences emissions compliance, as the capital intensity has a positive association with the increasing emissions-to-emissions cap ratio. Furthermore, different sectors show different degrees of sensitivity towards the determining factors. The production factor influences the performance ratio of the Utilities sector, but not the Energy or Materials sectors. The results show that the capital intensity has a more profound influence on the utilities sector than on the materials sector. With regard to the financial performance impact, ETS-exposed firms as aggregate portfolios experienced a substantial underperformance during the 2001–2004 period, but not in the operating period of 2005–2011. The results of the sector-based portfolios show again the differentiating effect of the EU ETS on sectors, as one sector is priced indifferently against its benchmark, three sectors see a constant underperformance, and three sectors have altered outcomes.

Performance of financial institutions in Bhutan

The Kingdom of Bhutan is a small landlocked country in South Asia, located in the eastern Himalayas, and bordered by India and China. Bhutan is a small and fragile economy with a population of about 687,000. Nevertheless, its banking system plays an essential role in the growth and development of the country. This paper analyzes the financial performance, the development and growth of bank and non-bank financial institutions of Bhutan for the period 1999-2008 using both traditional and data envelopment analysis (DEA). The DEA analysis shows that financial institutions in are efficient and Bhutan National Bank has been the most efficient one. Overall, the paper finds that the ROE of the financial institutions in Bhutan are comparable to the international banks.

Board composition and corporate performance: How the Australian experience informs contrasting theories of corporate governance

In many respects, Australian boards more closely approach normative best practice guidelines for corporate governance than boards in other Western countries. Do Australian firms then demonstrate a board demographic-organisational performance link that has not been found in other economies? We examine the relationships between board demographics and corporate performance in 348 of Australia's largest publicly listed companies and describe the attributes of these firms and their boards. We find that, after controlling for firm size, board size is positively correlated with firm value. We also find a positive relationship between the proportion of inside directors and the market-based measure of firm performance. We discuss the implications of these findings and compare our findings to prevailing research in the US and the UK.

A relação entre a performance ambiental e a performance financeira das empresas

This study examines the relationship between the environmental performance and the financial performance of Portuguese corporations, based on a sample of 35 stocks listed in the Euronext Lisbon stock exchange, for the period from 2000 to 2004. Corporate environmental performance is measured by an analysis of the environmental information disclosed in 2003 corporate annual financial reports. Stock market-based measures, such as return, risk and risk-adjusted return measures, are used to evaluate corporate financial performance, for the 5 years observation period. We use the portfolio studies and contingency tables methodology to evaluate the relationship between corporate environmental disclosures and corporate stock market performance. The empirical results suggest that companies that do not disclose environmental information have a superior financial performance – as measured by return, risk and risk-adjusted return – than those that disclose environmental information. In particular, companies with better environmental reporting, which disclose qualitative and quantitative environmental information, are the ones with worse financial performance. Nevertheless the differences found in financial performance are not statistically significant. The empirical results are thus adverse to the more recent view of environmental performance as a competitive advantage, maybe due to the still relatively small importance of environmental issues to companies and investors.

Innovation and the performance of Portuguese businesses: a ‘SURE’ approach

There is a general consensus that in a competitive business environment, firms’ performance will depend on their capacity to innovate. To clarifying how, when and to what extent innovation affects the market and financial performance of firms, the authors deploy seemingly unrelated regression equation model to examine innovation in over 500 Portuguese firms from 1998 to 2004. The results confirm, as theorists have frequently assumed, that innovation positively affects firms’ performance; but they also suggest that the reverse is true, a result that is less intuitively obvious, given the complexity of the innovation process and local, national and global competitive environments.

O processo de Internacionalização na ótica da gestão estratégica. Análise de performance Grupo EDP

Dissertação de Mestrado apresentado ao Instituto de Contabilidade e Administração do Porto para a obtenção do grau de Mestre em Contabilidade e Finanças, sob orientação de Doutora Cláudia Pereira