This report attempts to critically analyse the research paper:
Dunn, P., & Sainty, B. (2009) The relationship among board of director characteristics, corporate social performance and corporate financial performance, International Journal of Managerial, Finance, Vol. 5 No. 4, 2009 pp. 407-423
Brennan, Niamh [2006] Boards of Directors and Firm Performance: Is there an E...Prof Niamh M. Brennan
Reflecting investor expectations, most prior corporate governance research attempts to find a relationship between boards of directors and firm performance. This paper critically examines the premise on which this research is based. An expectations gap approach is applied for the first time to implicit expectations which assume a relationship between firm performance and company boards. An expectations gap has two elements: A reasonableness gap and a performance gap. Seven aspects of boards are identified as leading to a reasonableness gap. Five aspects of boards are identified as leading to a performance gap. The paper concludes by suggesting avenues for empirically testing some of the concepts discussed in this paper.
Brennan, Niamh [2006] Boards of Directors and Firm Performance: Is there an E...Prof Niamh M. Brennan
Reflecting investor expectations, most prior corporate governance research attempts to find a relationship between boards of directors and firm performance. This paper critically examines the premise on which this research is based. An expectations gap approach is applied for the first time to implicit expectations which assume a relationship between firm performance and company boards. An expectations gap has two elements: A reasonableness gap and a performance gap. Seven aspects of boards are identified as leading to a reasonableness gap. Five aspects of boards are identified as leading to a performance gap. The paper concludes by suggesting avenues for empirically testing some of the concepts discussed in this paper.
the relationship between normative commitment (one form of organizational commitment) and loyal boosterism (one construct of organizational citizenship behaviours)
AN ANALYSIS OF WORKPLACE ENTERTAINMENT AMONG COLLEGE TEACHERS ON WORK ENGAGEMENTIAEME Publication
The purpose of this study is to explore the effects of workplace entertainment on work engagement among college teachers. An empirical study conducted among the 200 college teachers in Tiruchirappalli District, Tamil Nadu. Purposive sampling method under non probability sampling technique was adopted for selecting samples for this study. Questionnaire survey was conducted for data collection. The major findings were workplace entertainment have both positive and negative effect on the work engagement of college teachers. Socialising with co-workers and Personal freedom at work have positive effect on factors like cognitive, emotional and social work engagement while celebration at work has positive effect on emotional work engagement and negative effect on cognitive and social work engagement of teachers. Authorities of colleges are major beneficiary of findings of this study. They will get a clear picture about the current pulse of workers regarding the effects of workplace entertainment on work engagement experienced by the college teachers.
The article discusses the importance of employee engagement for organizational
and business performance through the prism of ergonomics. The issues that are
discussed in this paper comprise the modest contribution that ergonomics as a
discipline has made. The relevance of workplace health and ergonomics work relate
with that of participation, safety culture and further implications for participatory
ergonomics approaches. Based on recently published conceptual framework that
recognises the dynamic and multi-dimensional nature of safety culture, the paper
highlights the due significance demanded by ergonomics and that which is equally
ignored by top management. The paper concludes by considering the much needed
empirical survey on this issue in almost all industries and prompt action being taken
to implement it. Also, the paper gives a glimpse of various approaches for an
empirical study, within an organisation which is noted as important to the success of
ergonomics projects
Effects of Employee Commitment on Academic Performance of Secondary Schools i...paperpublications3
Abstract: Employee commitment always plays a very key role in improving the academic performance. Distinguished performing companies perceive that employee commitment is a premier contributing factor toward maintaining continual success and composing value. A committed employee is participative and energized about their work and performs in an aspect that will progress the organization’s interest. The purpose of this study was to determine the effects of employee commitment on academic performance of secondary schools in Elgeyo- Marakwet County. The objectives of the study were: to determine the effect of emotional commitment of the headteacher on school’s academic performance, to establish the effect of normative commitment of the headteacher on school’s academic performance, to examine the effect of continual commitment of the headteacher on school’s academic performance. The study adopted a census case design that entailed having all the headteachers of all the secondary schools in Elgeyo-Marakwet County as the respondents. The three constructs of employee commitment i.e. the normative, emotional and continuous commitment were treated as the independent variable while academic performance was the dependent variable. Data was analyzed using SPSS and both descriptive and inferential statistics was used. Regression was used to construct models that were used to determine the nature of the relationships between the variables of interest. All the hypothesized relationships developed were found to be statistically significant at level p < 0.05 i.e. emotional commitment (r = 0.401, p < 0.000), continual commitment (r = 0.410, p < 0.000), normative commitment (r = 0.273, p < 0.000) were correlated to academic performance significantly and positively. all the organizational commitment constructs of emotional commitment, continual commitment, and normative commitment have significant positive relationship with academic performance (emotional commitment: β=.258, p-value= 0.000; continual commitment: β= .137, p-value= 0.020; normative commitment: β= .056, p-value= 0.044). The results of this study will form the framework for policy making on the issue of organizational commitment and academic performance.
Workforce engagement: What it is, what drives it, and why it matters for orga...Andrea Kropp
Based on a review of the history of the employee engagement construct and its measurement, we define workforce engagement as the aggregate of the work engagement experiences of individual employees in an organization. In contrast to most research on employee engagement, we study
companies rather than individuals and the companies represent a diverse set of industries. We hypothesize and demonstrate on a sample of (up to) 102 publicly traded companies that
workforce engagement significantly predicts organizational financial (adjusting for industry: Return on Assets, Net Margin but not Tobin's q) and customer metrics (the American Customer Satisfaction Index and the Harris Reputation Quotient) 1 and 2 years after the workforce engagement
data were collected. In addition, using a split‐sample approach to avoid method bias, we hypothesize and show that (a) company organizational practices (the strongest correlate),
supervisory support, and work attributes are significant correlates of workforce engagement and (b) that workforce engagement mediates the relationship between these correlates of engagement and the organizational performance metrics. Implications of the findings for research and practice are discussed.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Impact of Firm Specific Factors on Capital Structure Decision: An Empirical S...Waqas Tariq
Abstract This study attempts to explore the impact of firm specific factors on capital structure decision for a sample of 39-firm listed on Dhaka Stock Exchange (DSE) during 2003-2007. To achieve the objectives, this study tests a null hypothesis that none of the firm’s specific factors namely profitability, tangibility, non-debt tax shield, growth opportunities, liquidity, earnings volatility, size, dividend payment, managerial ownership, and industry classification has significant impact on leverage using estimate of fixed effect model under Ordinary Least Square (OLS) regression. Checking multicollinearity and estimating regression analysis through Pearson correlation and autoregressive mode respectively this study found that profitability, tangibility, liquidity, and managerial ownership have significant and negative impact on leverage. Positive and significant impact of growth opportunity and non-debt tax shield on leverage has been found in this study. On the other hand size, earnings volatility, and dividend payment were not found to be significant explanatory variables of leverage. Results also reveal that total debt to total assets ratios are significantly different across Bangladeshi industries. Keywords: Capital structure, Leverage, Firm’s specific factors, Dhaka Stock Exchange Bangladesh.
The aim of this study was to determine the link between multiple directorships (MDs) and cash holdings. This study used the source from the firm’s annual report, as these studies were secondary data. Smart PLS 3.0 was used to verify the secondary data collected. This study shows that the number of people holding MDs inside the institution is growing, and this has a great effect on the organization’s interests. In addition, the findings support the first theory, which promotes chief executive officers to hold varied directorships because they contain desired elements from the companies. This study is unique because it is the first in the Sultanate of Oman to investigate financial enterprise at the Muscat Stock Exchange with the goal of achieving certainty. It evaluates whether having executives with one or numerous directorships is advantageous for the organization and its stakeholders
Impact of Corporate Governance on Firms’ Financial Performance: Textile Secto...inventionjournals
Purpose: The basic standard of this article is to find out the outcome of corporate governance on firm’s profitability in textile sector of listed companies in Pakistan. Methodology: The data are collected from respective textile sector annual reports from 2005 to 2014.The results of different variables arise by using different techniques like descriptive, correlation and regression in using software of E-views in this study. Findings: These results of study explain that corporate governance and firm’s financial performance shows positive relationship between each other. This indicates that in textile sectors adopting corporate governance and plays a significant role in textile sectors. Research limitations: This study restricts by fewer digit of determinantslinked corporategovernance and data gathered from 2005 to 2014 were addressed, which restrictions the overview of the result. Further research can be conduct by using more variables and more years for finding more in future. Originality: This study shows that the firm’s performance has increased by using corporate governance in textile sector firms.
the relationship between normative commitment (one form of organizational commitment) and loyal boosterism (one construct of organizational citizenship behaviours)
AN ANALYSIS OF WORKPLACE ENTERTAINMENT AMONG COLLEGE TEACHERS ON WORK ENGAGEMENTIAEME Publication
The purpose of this study is to explore the effects of workplace entertainment on work engagement among college teachers. An empirical study conducted among the 200 college teachers in Tiruchirappalli District, Tamil Nadu. Purposive sampling method under non probability sampling technique was adopted for selecting samples for this study. Questionnaire survey was conducted for data collection. The major findings were workplace entertainment have both positive and negative effect on the work engagement of college teachers. Socialising with co-workers and Personal freedom at work have positive effect on factors like cognitive, emotional and social work engagement while celebration at work has positive effect on emotional work engagement and negative effect on cognitive and social work engagement of teachers. Authorities of colleges are major beneficiary of findings of this study. They will get a clear picture about the current pulse of workers regarding the effects of workplace entertainment on work engagement experienced by the college teachers.
The article discusses the importance of employee engagement for organizational
and business performance through the prism of ergonomics. The issues that are
discussed in this paper comprise the modest contribution that ergonomics as a
discipline has made. The relevance of workplace health and ergonomics work relate
with that of participation, safety culture and further implications for participatory
ergonomics approaches. Based on recently published conceptual framework that
recognises the dynamic and multi-dimensional nature of safety culture, the paper
highlights the due significance demanded by ergonomics and that which is equally
ignored by top management. The paper concludes by considering the much needed
empirical survey on this issue in almost all industries and prompt action being taken
to implement it. Also, the paper gives a glimpse of various approaches for an
empirical study, within an organisation which is noted as important to the success of
ergonomics projects
Effects of Employee Commitment on Academic Performance of Secondary Schools i...paperpublications3
Abstract: Employee commitment always plays a very key role in improving the academic performance. Distinguished performing companies perceive that employee commitment is a premier contributing factor toward maintaining continual success and composing value. A committed employee is participative and energized about their work and performs in an aspect that will progress the organization’s interest. The purpose of this study was to determine the effects of employee commitment on academic performance of secondary schools in Elgeyo- Marakwet County. The objectives of the study were: to determine the effect of emotional commitment of the headteacher on school’s academic performance, to establish the effect of normative commitment of the headteacher on school’s academic performance, to examine the effect of continual commitment of the headteacher on school’s academic performance. The study adopted a census case design that entailed having all the headteachers of all the secondary schools in Elgeyo-Marakwet County as the respondents. The three constructs of employee commitment i.e. the normative, emotional and continuous commitment were treated as the independent variable while academic performance was the dependent variable. Data was analyzed using SPSS and both descriptive and inferential statistics was used. Regression was used to construct models that were used to determine the nature of the relationships between the variables of interest. All the hypothesized relationships developed were found to be statistically significant at level p < 0.05 i.e. emotional commitment (r = 0.401, p < 0.000), continual commitment (r = 0.410, p < 0.000), normative commitment (r = 0.273, p < 0.000) were correlated to academic performance significantly and positively. all the organizational commitment constructs of emotional commitment, continual commitment, and normative commitment have significant positive relationship with academic performance (emotional commitment: β=.258, p-value= 0.000; continual commitment: β= .137, p-value= 0.020; normative commitment: β= .056, p-value= 0.044). The results of this study will form the framework for policy making on the issue of organizational commitment and academic performance.
Workforce engagement: What it is, what drives it, and why it matters for orga...Andrea Kropp
Based on a review of the history of the employee engagement construct and its measurement, we define workforce engagement as the aggregate of the work engagement experiences of individual employees in an organization. In contrast to most research on employee engagement, we study
companies rather than individuals and the companies represent a diverse set of industries. We hypothesize and demonstrate on a sample of (up to) 102 publicly traded companies that
workforce engagement significantly predicts organizational financial (adjusting for industry: Return on Assets, Net Margin but not Tobin's q) and customer metrics (the American Customer Satisfaction Index and the Harris Reputation Quotient) 1 and 2 years after the workforce engagement
data were collected. In addition, using a split‐sample approach to avoid method bias, we hypothesize and show that (a) company organizational practices (the strongest correlate),
supervisory support, and work attributes are significant correlates of workforce engagement and (b) that workforce engagement mediates the relationship between these correlates of engagement and the organizational performance metrics. Implications of the findings for research and practice are discussed.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Impact of Firm Specific Factors on Capital Structure Decision: An Empirical S...Waqas Tariq
Abstract This study attempts to explore the impact of firm specific factors on capital structure decision for a sample of 39-firm listed on Dhaka Stock Exchange (DSE) during 2003-2007. To achieve the objectives, this study tests a null hypothesis that none of the firm’s specific factors namely profitability, tangibility, non-debt tax shield, growth opportunities, liquidity, earnings volatility, size, dividend payment, managerial ownership, and industry classification has significant impact on leverage using estimate of fixed effect model under Ordinary Least Square (OLS) regression. Checking multicollinearity and estimating regression analysis through Pearson correlation and autoregressive mode respectively this study found that profitability, tangibility, liquidity, and managerial ownership have significant and negative impact on leverage. Positive and significant impact of growth opportunity and non-debt tax shield on leverage has been found in this study. On the other hand size, earnings volatility, and dividend payment were not found to be significant explanatory variables of leverage. Results also reveal that total debt to total assets ratios are significantly different across Bangladeshi industries. Keywords: Capital structure, Leverage, Firm’s specific factors, Dhaka Stock Exchange Bangladesh.
The aim of this study was to determine the link between multiple directorships (MDs) and cash holdings. This study used the source from the firm’s annual report, as these studies were secondary data. Smart PLS 3.0 was used to verify the secondary data collected. This study shows that the number of people holding MDs inside the institution is growing, and this has a great effect on the organization’s interests. In addition, the findings support the first theory, which promotes chief executive officers to hold varied directorships because they contain desired elements from the companies. This study is unique because it is the first in the Sultanate of Oman to investigate financial enterprise at the Muscat Stock Exchange with the goal of achieving certainty. It evaluates whether having executives with one or numerous directorships is advantageous for the organization and its stakeholders
Impact of Corporate Governance on Firms’ Financial Performance: Textile Secto...inventionjournals
Purpose: The basic standard of this article is to find out the outcome of corporate governance on firm’s profitability in textile sector of listed companies in Pakistan. Methodology: The data are collected from respective textile sector annual reports from 2005 to 2014.The results of different variables arise by using different techniques like descriptive, correlation and regression in using software of E-views in this study. Findings: These results of study explain that corporate governance and firm’s financial performance shows positive relationship between each other. This indicates that in textile sectors adopting corporate governance and plays a significant role in textile sectors. Research limitations: This study restricts by fewer digit of determinantslinked corporategovernance and data gathered from 2005 to 2014 were addressed, which restrictions the overview of the result. Further research can be conduct by using more variables and more years for finding more in future. Originality: This study shows that the firm’s performance has increased by using corporate governance in textile sector firms.
Impact of Corporate Governance on Firms’ Financial Performance: Textile Secto...inventionjournals
Purpose: The basic standard of this article is to find out the outcome of corporate governance on firm’s profitability in textile sector of listed companies in Pakistan. Methodology: The data are collected from respective textile sector annual reports from 2005 to 2014.The results of different variables arise by using different techniques like descriptive, correlation and regression in using software of E-views in this study. Findings: These results of study explain that corporate governance and firm’s financial performance shows positive relationship between each other. This indicates that in textile sectors adopting corporate governance and plays a significant role in textile sectors. Research limitations: This study restricts by fewer digit of determinantslinked corporategovernance and data gathered from 2005 to 2014 were addressed, which restrictions the overview of the result. Further research can be conduct by using more variables and more years for finding more in future. Originality: This study shows that the firm’s performance has increased by using corporate governance in textile sector firms.
Investigating Corporate Governance And Its Effect on Firm Performance with As...QUESTJOURNAL
ABSTRACT: Corporate governance and its effect on firm performance are investigated in this research. Research independent variables include non-bound members of board of directors, board of directors’ independence, institutional shareholders, and dependent variable includes assets return which is the index of firm’s performance. Accordingly, data of 125 accepted firms in Tehran securities exchange during 2009 to 2013 was extracted and panel data regression model was applied to test the hypotheses. Results indicate an inverse significant relationship between non-bound members of board of directors and assets return and a positive significant relationship between board of directors’ independence and firm’s performance. Also, there is a positive relationship between institutional shareholders and firm’s performance. In general, results showed that appropriate corporate governance improves firms’ performance.
Study to investigate the correlation between the operating performances of fi...Charm Rammandala
The purpose of this study to understand whether there is a correlation between the operating performance of a firm and its CEO’s compensation. Various scholars and journalists studied and reported in this area over the years with mixed results. Popular notion among general public is that regardless of the performance of the company, CEO’s pay and perks either remain same or increase. Another accusation is most of the mergers and acquisitions taken place to boost the pay of CEO’s rather than to increase the value of shareholder. Study will look in to the validity of these claims to determine whether there is a correlation between the firm performances and the CEO pay
Firm Performance Based on Acquisition, Merger, and Debt Policy on SOE in Indo...AJHSSR Journal
ABSTRACT: This study aims to examine the effect of acquisitions, mergers, and debt policies on company
performance in BUMN companies listed on BPS for the 2016-2020 period. The data collection technique used
was purposive sampling, where the sample obtained was 317 that met the criteria. The data analysis techniques
used in this study are descriptive statistics, classical assumption tests, multiple regression analysis tests and
hypothesistesting. Based on the research conducted, the research results show that acquisitions and mergers havea
significant effect on company performance, as well as debt policy which has a significant effect on company
performance.
KEYWORDS: Acquisition, Merger, Debt, Firm Performance
Impact of Corporate Governance on Organizational PerformanceJenıstön Delımä
Citation: Delima, V. J., & Ragel, V. R. (2017). Impact of corporate governance on organizational performance. International Journal of Engineering Research and General Science, 5(5).
Abstract- This study examined whether corporate governance has impact on organizational performance in Financial Institutions as research problem. This research was carried out with objective to measure association between Corporate Governance and Financial Institution’s Performance in Batticaloa district. Conceptual framework has been developed to measure linkages between Corporate Governance and Financial Institution’s Performance. Board Size, Corporate Governance Mechanism, Communication Strategies, and Code of Conduct are considered as the measurement variables of Corporate Governance which was derived from Changezi & Saeed (2013) and Customer Satisfaction, Employee Commitment and Corporate Reputation are considered as the measurement variable of Organizational Performance which was derived from Bayoud (2012) and Carton (2004). Questionnaires were used to collect data for this study. 115 Management Respondents and 115 Customers from whole Financial Institutions in Batticaloa district have been selected for this study. Data were analyzed and evaluated by Univariate and Bivariate techniques. In Univariate analysis, Descriptive statistic has been used for the analysis. In Bivariate analysis, Correlation and multiple regressions have been used for the analysis. Findings have shown the Corporate Governance and Organizational Performance are at high level. Moreover, it also found that there is a strong positive relationship between Corporate Governance and Organizational Performance. Corporate Governance significantly impacts Organizational Performance of Financial Institutions. These findings would be useful to consider more on Corporate Governance practices to avoid the Corporate Collapses and to achieve successful Organizational Performance
The Effect of Capital Structure on Profitability of Energy American Firms:inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Corporate Social and FinancialPerformance An Extended.docxrichardnorman90310
Corporate Social and Financial
Performance: An Extended
Stakeholder Theory, and Empirical
Test with Accounting Measures
Gerwin Van der Laan
Hans Van Ees
Arjen Van Witteloostuijn
ABSTRACT. Although agreement on the positive sign
of the relationship between corporate social and financial
performance is observed in the literature, the mechanisms
that constitute this relationship are not yet well-known.
We address this issue by extending management�s stake-
holder theory by adding insights from psychology�s
prospect decision theory and sociology�s resource
dependence theory. Empirically, we analyze an extensive
panel dataset, including information on disaggregated
measures of social performance for the S&P 500 in the
1997–2002 period. In so doing, we enrich the extant
literature by focusing on stakeholder heterogeneity, per-
ceptional framing, and disaggregated measures of corpo-
rate social performance.
KEY WORDS: panel data analysis, prospect decision
theory, resource dependence theory, social responsibility,
stakeholder theory
Introduction
Three decades of research into the relationship
between corporate social performance (CSP) and
corporate financial performance (CFP) suggest, by
and large, that corporate well-doing enhances firm
profitability (Orlitzky et al., 2003). The analyses
have remained at a fairly high level of aggregation,
giving rise to the criticism that overall measures of
CSP and CFP do not take the rich variety of
underlying determinants into account (Wood and
Jones, 1995). The current study aims to enhance the
understanding of the drivers of the relationship
between corporate social and financial performance.
For one, theoretically, we will develop hypotheses as
to the impact on the CSP–CFP relationship of
stakeholder heterogeneity and perception biases.
Additionally, empirically, we will explore an
extensive panel dataset that covers the corporations
in the S&P 500 over the 1997–2002 period,
including decomposed information about underly-
ing dimensions of corporate social performance.
More specifically, our key contribution is two-fold.
First, we analyze the effect of heterogeneity
among corporate stakeholder groups on the CSP–
CFP nexus, following Clarkson�s (1995) distinction
between primary or �private� stakeholders, and
secondary or �public� stakeholders. Wood and
Jones (1995) argued that there is a mismatch
between the variables in previous research. For
instance, employees and Greenpeace put different
emphasis on issues of labor conditions and envi-
ronmental pollution. With this critique in mind,
we explicitly incorporate more fine-grained mea-
sures of corporate social performance into our
analysis. After all, the question as to the relation-
ship between corporate social and financial per-
formance cannot be considered separate from the
analysis of how corporations interact with different
stakeholder groups that weigh the underlying CSP
dimensions differe.
NEW GLOBAL OPEN WEB E BANKING MARKET HANDLING INTERNATIONAL GREEK CHARGES GR0112005674 Name und Anschrift des Leistenden Name/Unternehmen E.D.GOUTOS SA Postleitzahl 21300 Ort PORTOCHELI GREECE Staat Vereinigte Staaten von Amerika Steuernummer/USt-IdNr. 93172860596 Sitz des Geldinstitutes GREECE Bankleitzahl (Sortcode) 20122262 Bank Identification Code (BIC) HRB68648
Global Marketing Assignmnet - Nordstrom Global Marketing PlanAmany Hamza
During the group presentation, the first marketing plan proposal for Nordstrom was provided to make its first foray out of the U.S.A. into Brazil. Following that, this report sets out to analyse the market entry plan as, throughout Brazil, opportunities abound for branded fashion retailers to expand. This paper entrenches the development of marketing branding programme to build the brand identity and cultivate loyalty to be integral in driving sales growth.
Furthermore, the appraisal presents a thumbnail sketch of Nordstrom’s leading position in the Brazilian marketplace which is driven by inherent implementation activities through the IMC (Integrated Marketing Communication) process. And with the attention to Brazilian consumer trends and preferences, Nordstrom will dominate the Brazilian market.
To conclude, this recommendation encloses the imperatives for Nordstrom to sustain growth in ROI (Return on Investment) by leveraging its brand values and attributes in the new domain, where Brazil is the optimal territory for its debut overseas and the preliminary market to test its potential to open up new markets south of the equator.
MBA Dissertation - The voice of the Stakeholder: Customer attitudes to the ro...Amany Hamza
This study attempts to get to the heart of the debate about CSR development in
light of the Financial Crisis of 2008. It is concerned with the perception of CSR activities, the likelihood of the convergence between banks CSR activities and its customer-stakeholder needs and the implications of CSR on their attitudes as well as on Corporate Reputation (CR). Concluding remarks highlight further theoretical development of CSR and managerial implications as well as limitations for future research.
Enterprise & Innovation Assignment - Entrepreneurial Opportunities: Creativit...Amany Hamza
Despite the importance of entrepreneurship in changing the economic landscape of many countries, the identification of the entrepreneurial opportunity is still in its early stages. So far, the researches that have been done are full of dichotomous interpretations. These differences could be due, in part, to the fact that there is no unitary conceptualisation and functional definitions of the construct. Nevertheless, the prevalent interpretations are that entrepreneurial opportunities are either stemming from discovery or deliberate search. To reveal the nature of these opportunities, the entrepreneur's traits and personality have been analysed. Evaluation strategies have also been elaborated. Finally, mapping the entrepreneurial processes has emerged to shape these opportunities (Gaglio, 2001).
This report is intended to contribute to the development of the entrepreneurial opportunities identification by addressing the role of two pillars of entrepreneurship – creativity and innovation – as the sources of these entrepreneurial opportunities.
Research Proposal - CSR - The Voice of the StakeholderAmany Hamza
In light of the recent financial crisis, the practices of CSR have come to the fore in media reports and academic debates. In this context, the goal of this research is, first, to examine the impact of the financial crisis on the implications of CSR activities in relation to stakeholders’ expectations in the financial services industry and, second, to help banking managers to understand what should be done for the benefit of their stakeholders and their own business sustainability.
Corporate Strategy Assignment - The Global Pharmaceutical IndustryAmany Hamza
This report provides an analytical strategic review of the global pharmaceutical industry. In the first part, it covers the external environment of the global pharmaceutical industry using PESTEL analysis and outlines the Key drivers for change. It then uses the Five Forces analysis to demonstrate the industry attractiveness. Secondly, we illustrate the strategic capabilities of Novartis using the Value chain. Finally, we attempt to highlights its financial performance, position and culture.
Global Business Practice Assignment - The changing relationships between Tran...Amany Hamza
This paper aims to distil and critically analyse the changing relations between TNCs and nation-states and to what extent other multilateral institutions do influence these relations.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Helen Lubchak: Тренди в управлінні проєктами та miltech (UA)
Research Methods Assignment - The Relationship among board of director characteristics, csp and cfp
1. [Assignment - Critical Review] 2013
¹
The Relationship among board of
director characteristics, corporate
social performance and corporate
financial performance
Amany Hamza
Student number: 21202244
Tutor: Sharif Sheriff,
Course: MBA / Research Methods, BA70020E
Word Count: 2000
(Excluding Table of Contents, Acronyms, Cover Page and Appendices)
Date: 08th
November 2013
Figure 1 – CSP and CFP (Source: Google, Adapted for the link between CSP and CG, CFP)
3. Assignment - Critical Review 2013
3
1. ACRONYMS
BoD Board of Directors
CFP Corporate Financial Performance
CG Corporate Governance
CK Corporate Knights
CSP Corporate Social Performance
CSP Score Dependent variable that is taken from the Canadian Social Investment Database as
prepared by JRA which is affiliated with, among others, Kinder, Lydenberg and
Domini (KLD)
CSR Corporate Social Responsibility
EPS The firm’s earnings per share
FP Financial Performance
JRA Janzi Research Associates
ROB The Report on Business
is independent third party assessor of the quality of corporate governance
structures of Canadian Companies, ROB rates the top 300 firms on the TSX across
four areas of corporate governance: shareholder orientation, board composition,
compensation, and disclosure issues
ROE The firm’s return on equity
RP Research Paper
SR firms Firms on the Domini Social Index
TSX Toronto Stock Exchange
2. EXECUTIVE SUMMARY
This report attempts to critically analyse the research paper:
Dunn, P., & Sainty, B. (2009) The relationship among board of director characteristics, corporate
social performance and corporate financial performance, International Journal of Managerial,
Finance, Vol. 5 No. 4, 2009 pp. 407-423.
The first section of this report covers the analysis of the RP as well as the purpose of the RP which is to
investigate the relationship between qualitative measures of the BoD and its CSP. RP examines first the
impact of the board on the CFP as well as its CSP. Then, it examines CSP from the perspective of agency
theory. For the purpose of the RP, it developed CSP score model to test three submitted hypotheses.
The empirical study is using a longitudinal sample of 104 Canadian firms to capture CG impact on the CSP.
Although the sample is small and limited to top Canadian firms listed on TSX, the results are quite robust.
Moreover, a strength (and weakness) of this study is utilising qualitative methodology to identify the
relationship between CSP and CG. The reason for that is that this methodology has been used within only two
empirical studies with respect to the link between CG and financial statement disclosures1
and also earnings
quality2
. The findings illustrate a positive link between CSP-board independence but not in terms of the
shareholder orientation. Another positive link between CSP with both CFP and debt is found. RP concludes
with a strong recommendation for researchers to develop finer measures to capture the quality of CG
structures instead of using the usual suspects.
1
Gleb and Strawser, 2001; Healy et al., 1999; Welker, 1995.
2
Niu, 2006.
4. Assignment - Critical Review 2013
4
The last section outlines the overall conclusion which includes my critique and general observations.
3. INTRODUCTION
The notion of CPS encompasses the dimensions of community relations, workplace, the environment and the
society at large. This RP ties up the integration of the societal concerns into business practices to the
characteristics of the CG. Prior work3
documents that board independence is strongly correlated with the CSP.
In the same vein, positive association is noted4
between investor ownership and CSP. However, counter
arguments have prevailed unclear impact of the BoD shareholder orientation has on CSP, while the
managerial ownership –CSP link is less clear (see Appendix I).
With regards to the impact of the CG structures on the CFP, agency theory claims that there should be a direct
link between the strength of CG and the CFP; it has parallels to strong independent Boards. Moreover,
compensating directors with equity should further enhance the Board and the common shareholder
relationship5
(see Appendix I). Thus, independent board with a shareholder orientation view should be closely
interrelated to CFP.
In examining the CSP-CFP link, empirical research has generated mixed results. In Roman et al (1999) review of
51 exploratory studies, 32 studies posit a positive CSP-CFP correlation, about 5 with a negative correlation and
14 resulted in hybrid correlation or no correlation was found. Thus, this CSP-CFP model resulted in a
fragmented literature in this area, and this could be because of flawed investigations.
The holistic view of CSP captures the principles of CSR and the processes of CS responsiveness towards
different societal actors over the long term. Hence, the integration of CSP into governance systems
incorporates a long term perspective. In this sense, CG is driven by long term commitment to serve corporate
purposes by providing a structure which creates sustainable business. Similarly, short term executive
compensation contracts do not imply a strong CSP (McGuire et al, 2003).
Agency theory’s contention addresses interest conflicts between managers and investors. This potential
conflict derived from keeping management divorced from ownership. Thereof, shareholder value capitalism is
based on the duty of the BoD to align the interests of management with those of shareholders through the
use of stock-based compensation. Hence, well governed corporations will contribute to sustainable improved
performance.
Nonetheless, another issue6
within the agency theory is the adverse selection problem of the right business
investment for the bondholders. In seeking to lessen this issue, some researchers7
find that firms can alleviate
the debt risk by spurring corporate citizenship view. Contradictory to that, McGuire et al (1988) note adverse
link between the risk and CSP. Either way, CPS may act as a signal to external parties about the quality of
management.
3
Studies by: Ibrahim and Angelidis, 1995; Johnson and Greening, 1999; Wang and Dewhirst, 1992.
4
Consensus by: Cox et al., 2004; Johnson and Greening, 1999; Graves andWaddock, 1994; Neubaum and
Zahra, 2006
5
Consensus by: Hillman and Dalziel, 2003.
6
Issue noted by: Defond and Jiambalvo, 1994
7
Consensus: Cahan and Malone, 1995; Graves and Waddock, 1994; Husted, 2005; Orlotizky and Benjamin, 2001
5. Assignment - Critical Review 2013
5
Firms with more independent boards of directors
wil have better corporate social performance than
firms with less independent Boards of Directors.
H2
4. HYPOTHESES
This RP so far provides in depth picture of the impact of CG on CSP. This impact is gauged with qualitative
measures of shareholder orientation and board independence.
4.1. SHAREHOLDER ORIENTATION
The study highlights the assumption of agency theory that a more close association incurs between
investors and managerial ownership. Abreast with this speculation, director ownership is positively
related to CFP. This is in compliance with the findings that top-performing firms have boards with a large
ownership interest. However, it is not clear if the shareholder orientation and CSP should be positively
correlated as well. In contrast, researchers confirm a positive relationship between CSP8
and institutional
investors. This is quite unlike the link between CSP and managerial ownership, which only incurs in some
aspects of CPS. Moreover, Frye et al (2006) deem compensating management with stock may induce
them to squander corporate resources to benefit themselves.
The findings of a matched sample of 400 SR firms with another 400 of non-SR firms indicate that there is
no impact of stock options on CEOs at SR firms to take on more risks though they have an impact on the
latter in order for CEOs to increase their personal wealth.
4.2. BOARD INDEPENDENT
External independent directors can be appointed to the Board to better monitor management in order to
tackle management opportunistic behaviour. They, in turn, promote a broader stakeholder orientation
and their interests, thus, are more closely aligned with the interests of the other investors9
.
4.3. FIRM RISK
Risk is associated with issuing debt instruments because of the asymmetric information in this regards.
Hence, the engagement in socially responsible activities to signal to bondholders its business credence will
reduce the inherent risk (See Appendix I).
8
Consensus: Cox et al., 2004; Graves and Waddock, 1994; Johnson and Greening, 1999; Neubaum and Zahra, 2006
9
Consensus: Jensen and Meckling, 1976; Zahra and Pearce, 1989
The degree of shareholder
orientation of the BoD will have no
effect on the CSP of the firm.
H1
Fig. 3: Hypothesis 2
Fig. 2: Hypothesis 1
6. Assignment - Critical Review 2013
6
Firms with high debt ratios will have better
corporate social performance than firms with
low leverage ratios.
H3a
The findings from Fortune 500 corporate reputation scores10
show a positive relationship between
performance and social responsibility scores, while revealing that there is a negative relationship
between leverage and social performance. The findings propose that firms with high performance and
low debt are more economically viable to afford participating in social activities.
5. METHODOLOGY
5.1. MODEL
The CSP score model that is used to test these hypotheses is:
5.2. DEPENDENT, INDEPENDENT AND CONTROL VARIABLES
CSP score is the dependent variable, where JRA rates the largest 300 firms listed on TSX by using KLD’s11
multidimensional construct, fig.7. Aggregated CSP score is weighted based on its relative importance to
the five stakeholders’ domain, fig. 8. The top 50 firms’ names and scores are published annually since
2002 in CK, though for 2003 only the rankings were disclosed.
10 By: McGuire et al. , 1988.
11
Kinder, Lydenberg and Domini is a financial advisory firm specializing in the assessment of corporate social performance.
CSP score
f (shareholder orientation, board independence,
leverage, controls).
Fig. 6: CSP model
Fig. 4: Hypothesis 3a
Firms with high leverage ratios will have poorer
corporate social performance scores than firms
with low leverage ratios.
H3b
Fig. 5: Hypothesis 3b
7. Assignment - Critical Review 2013
7
Corporate
governance
Community
relations
International
relationships
Environment
Workplace
diversity
Product safety
and business
practices
Employees’
relations
Share
performance
Fig. 8: Stakeholder groups
nature Employees
Shareholders
On the other hand, the annual ratings for the independent variables, shareholder orientation and board
independency, are compiled by the ROB12
. The orientation variable is scored out of a possible 24 points
with regard to stock option criteria, while the independence’s score is out of a possible 40 points in terms
of board composition (See Appendix II). The Debt ratio, another independent variable, is measured as the
ratio of long-term debt to total assets. Compustat is used to obtain financial statement data.
In line with prior studies, the RP controls for firm Frequency, firm size (which measures by the log of total
assets), and for the financial performance (EPS, ROE).
5.3. SAMPLE SELECTION
The supporting evidences are derived from a sample composed of the 50 best Canadian companies over
multiple industries (See Appendix III, Table III). Data are collected from the period of 2002 to 2006. While
JRA ranking excluded 2003 because actual score was unavailable, also out of the total sample of 200
observations only 174 firms (See Appendix III, Table I, is the final sample because 19 do not have ROB
scores and 7 firms have incomplete financial data. 104 unique firms (See Appendix III, Table II) reflect the
number of times that each firm was rated in the top 50 firms over the 5 years.
6. EMPIRICAL ANALYSES
First, the correlation matrix and statistics (See Appendix III, Table IV) provide support for H1, H2, and H3a. The
results show the CSP score highly correlated with Independence and Leverage but not with Orientation.
Fig. 7: multidimensional nature of CSP
8. Assignment - Critical Review 2013
8
Second, multiple regressions results for Model 1 (See Appendix III, Table V) reveal a positive association
between CSP and CFP. This is consistent with prior studies13
. However, the CSP-Frequency link is not
statistically related. Moreover, the coefficients of control variables in Model2 are in line with the results of
Model1. Also the coefficients and statistics results of the three independent variables are in accord with those
of Model1. The empirical analyses, thus, support hypotheses H1, H2, H3a.
The results show that strong positive CSP is embedded within a highly independent board, whereas board
shareholder orientation is not related to CSP. This is consistent with stakeholder theory, hence supporting the
holistic view of CSP. With regards to the link between firm risk and FP to CSP, this study finds similar results of
other studies.
7. CONCLUSION
By using a set of qualitative characteristics, this investigation can make a salient contribution to further
develop the understanding of the relationship between CG and CSP. The data is analysed by an inductive
research strategy which uses interpretivist approach to explore the degree of board independency and its
level of shareholder orientation in relation to the CSP. Nonetheless, despite using qualitative research instead
of the dominant quantitative method in this strand, the results demonstrate consistency with other two
qualitative empirical studies with respect to the link between CG and financial statement disclosures14
and
also earnings quality15
.
The negative correlation between a board with shareholder orientation and CSP supports the broad notion of
CSP. Hence CSP is geared towards the Stakeholder theory, which is the emerging view of socialised
capitalism16
. This offers ground for speculation on the validity of the claim of H1.
Using a strong independent board view does not only lead to strong CSP, but it can steer CEOs towards good
management practices to tackle managerial capitalism. Hence it relates to serving many actors and this leads
to holistic view of CSP. This represents a coherent construct of the RP.
Furthermore, it is important to take into account that the independent variable, Leverage, is compiled for the
five-year period 2002 to 2006. Thus, the ratios of debt took place in the context of economies of pre-
recession; therefore there is a possibility for the ratios of 2007 onwards to be volatized. Further work is
recommended to examine H3 in the light of these changes.
The use of multidimensional measurements by JRA, KLD and ROB reflect the internal reliability of the sample.
However, by limiting the sample to Canadian companies, the results might not be valid for companies outside
the Canadian governance tradition because of the differences in the legal and cultural environments. Hence,
further studies should consider an international sample to reflect transferability criteria.
The small size of the sample could be convenient to limit errors in the early stage of using qualitative
approach in such strand. But it is recommended to consider a large sample for further insights into firms with
medium and low CSP scores.
Further studies with detailed CSP score instead of the aggregated used one may highlight the unique CS
dimension of each firm to develop better understanding and promote the scope of CSR.
13
Cox et al., 2004; Johnson and Greening, 1999; McGuire et al., 1988
14
Gleb and Strawser, 2001; Healy et al., 1999; Welker, 1995.
15
Niu, 2006.
16
Kakabadse et al. (2010) suggests a fundamental shift in the investment time horizon from shorter to longer term
and build around stakeholders.
9. Assignment - Critical Review 2013
9
This study sheds a light on the role of the board in the CSP-CFP which has been ignored in prior studies. The
model used results in a positive link between both. Hence it paves a strong way for further research in this
link.
RP proposes that CSP is similar to CFP in terms of not having long-term view. This emanates from the
frequency findings of the sample. Although good performance in one year does not mean same results in
following year, still long term performance is necessary to leverage stability which is the main perspective for
CFP strategies. Though short term view can be defined as tactics, stable business cannot merely rely on it.
Hence this creates avenues for future studies to parse CSP from permanent, transitory and price irrelevant
persistence.
10. Assignment - Critical Review 2013
10
8. APPENDICES
8.1. APPENDIX I
Domains
Influential
authors/Period
CSP
Influential
authors/Period
CFP
CG Structures
1.Independent
BoD
Ibrahim and
Angelidis, 1995;
Johnson and
Greening, 1999;
Wang and
Dewhirst, 1992
a strong link
between board
independence and
CSP
Beasley, 1996; Bujaki
and McConomy, 2002;
Core et al., 1999;
Kosnik,
1987
Strong association
between strong
independent
board-CFP
Hillman and Dalziel,
2003
Board with
shareholder
orientation should
further enhance
the Board and
common
shareholder link
2.Managers
Johnson and
Greening, 1999
Managerial
ownership is only
related to some
aspects of CSP
McGuire et al,
2003
Short term
executive
compensation
contracts is not
related to strong
CSP.
Institutional
Investors
Cox et al., 2004;
Johnson and
Greening, 1999;
Graves and
Waddock, 1994;
Neubaum and
Zahra, 2006
Positive Investor
ownership-CSP
association
Debt
instruments/
Firm risk
Cahan and
Malone, 1995
Strong link
between socially
responsible
behaviour and the
level of voluntary
disclosures
McGuire et al, 1988-
using Fortune 500
corporate reputation
scores
A positive link
between
performance-social
responsibilities
scores.
McGuire et al,
1988-using
Fortune 500
corporate
reputation scores
A negative link
between firm risk
and social
responsibility
scores