• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.349-362
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• 2021

This study aims to examine the effect of environmental performance, independent board of commissioners, and firm size on environmental disclosure measured by the Indonesian environmental index. The population in this study is manufacturing and coal mining companies that follow "PROPER" and are listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. This research was conducted by reviewing annual reports to collect information on environmental disclosures. The sampling used in this study was purposive sampling technique and obtained a sample of 117. Also, the data analysis technique used was multiple linear regression analysis with statistical hypothesis testing. The results showed that environmental performance and firm size had a positive effect on financial performance. Meanwhile, the independent board of commissioners does not affect financial performance. Furthermore, environmental performance, firm size, and financial performance have a positive effect on environmental disclosure. While the independent board of commissioners does not affect environmental disclosure. The findings of this research suggest that environmental performance has a significant positive effect on financial performance. The hypothesis is accepted, meaning that companies that are sensitive to environmental problems and run eco-efficiency operations will strengthen the company's profitability.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.61-72
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• 2020

The purpose of this study is to investigate the determinants of the capital structure of firms operating in a developing economy, Pakistan. The quantile regression method is applied on a sample of 183 non-financial companies listed on the Pakistan Stock Exchange during the period of 2008-2017. Specifically, the empirical analysis focuses on changes in the coefficients of the determinants according to the leverage ratio quantiles of the examined listed firms. The findings show that the capital structure of Pakistan listed firms differs between firms in different quantiles of leverage. These differences are significant with the sign of explanatory variables changes with the level of leverage. The research result found tangibility, profitability and age to be positively related to leverage among listed firms in Pakistan. However, size, liquidity and non-debt tax shield (NDTS) are negatively related to leverage. A firm's growth and risk are found to be insignificant predictors of capital structure in Pakistan listed firms. Moreover, the study also found a significant impact of industry characteristic on leverage. The findings of this study indicate that an individual firm's finance policy needs to be responsive to the firm's characteristics and should match with the different borrowing requirements of listed firms.

• Journal of the Korean Society of Food Culture
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• v.29 no.6
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• pp.593-598
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• 2014

Brands play a critical role as a core asset and the primary driver for corporate growth because of their power of identity and influence on customers' perceptions in restaurant industry. However, in spite of diverse and dynamically changing recent brand portfolio strategies of restaurants, a study on the effect of brand diversification on financial performance has been rarely conducted in the restaurant industry context. Considering competing viewpoints regarding diversification's influence on financial performance, the purpose of this study is, therefore, to examine the effect of brand diversification on firm performance of restaurants. The results indicated that brand diversification is positive effect to profitability. Brand diversification seems to be attractive and might be a reasonable growth strategy to expand market power by satisfying diverse consumer needs. Therefore, restaurant managers should be consider in implementing brand diversification strategy especially in dynamically changing trend of brand diversification in the current restaurant industry.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.10
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• pp.440-453
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• 2020

Given the dynamics of the changing economic or financial conditions in Chungcheong province in the domestic capital market, foreign and domestic investments are expected to continually increase their investments in volume and size in this particular province. Considering the unprecedented business climate, it may be essential to examine the primary financial aspects, such as corporate profitability, growth rate, and capital structure, which may work as effective catalysts to enhance corporate value. Concerning the outcomes, five proposed variables, such as market-value based leverage ratio, growth rate, Tobin's Q, business risk, and R&D intensity, highlighted the significant effects to determine the current level of profitability. Moreover, two variables, such as profitability and firm size, shared commonalities to discriminate between firms in the Chungcheong province (96 firms) and their counterparts (746 firms) in the other domestic provinces in terms of the growth rate and financial leverage. In contrast, three variables, including the interaction effect and firm size, had pronounced effects on profitability. The results of the study are expected to help enhance the corporate value in Chungcheong province by controlling the level of each significant factor.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.817-825
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• 2020

Over the last few decades, corporate frauds have highlighted the significance of corporate governance in deriving firm performance. By using different sample data, extensive research has examined how corporate governance structure influences firm's profitability, but limited research was undertaken on the banking sector of Pakistan. This research adds to the literature by testing how board structure derives bank's performance by using sample data of 19 banks for the period from 2010 to 2017. In addition, the study analyzes the controlling part of size on the link between board governance and bank performance. Findings reveal that banks having small board size, fewer non-executive directors and minimum activity level perform better. Analysis related to bank size illustrates that board size has value in increasing benefits in large size banks in contrast to small size one, while higher participation by board members enhances performance of small size banks more. The correlation results and findings showed that there existed no multicollinearity issue between independent variables. Board size showed positive correlation with the market variable, while board activity tended to correlated negatively with the market performance. Inverse correlation between board size and independent directors indicated that Pakistani banks with greater board size had fewer independent directors.

• Asia Pacific Journal of Business Review
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• v.1 no.2
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• pp.37-62
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• 2017

To analyze the effects of R&D expenditure on the firm value of Korean firms, we classified portfolios based on R&D activity levels. After that, we conducted a time-series analysis to assess excess returns from the portfolios. To carry out such an analysis, an empirical analysis of excess returns in the capital market was performed by using the monthly earning rate of stocks from 2000 to 2013. The purpose of this research is to provide basic data on investment to stakeholders in the capital market by analyzing the effects of R&D on the firm value and to overcome scholarly limitations by offering a new model of analysis. The criteria for classifying the portfolios were based on R&D expenditure levels. The analysis models follow the Fama-French Three-Factor Model and the Carhart Four-Factor Model. The analyses results are as follows. Extrapolating monthly profit rates based on R&D expenditure levels, portfolios with low R&D expenditures showed higher earning rates than those with high R&D expenditures. This suggests that high R&D expenditures did not translate into high earning rates. The investor depreciates the R&D expenditures related profitability and the possibility of success in the market, leading to falls in stock prices and a failure to give a positive effect on the firm value. Our research differs from the previous investigations as we carried out an empirical analysis based on the actual investors' attitudes about R&D expenditures and how these can generate excess earnings. Our research results show that the data related to R&D expenditure are not reflected fully in the market.

• Journal of Korea Society of Industrial Information Systems
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• v.24 no.6
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• pp.81-93
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• 2019

As customers' needs are more diversified, the issue of managing product variety has become more important to manufacturers. It is because an increase in product variety may cause various inefficiencies in operations, while satisfying more diverse needs. Consequently, firms have introduced the concept of modularity to improve operational performance. Yet there are only a few studies which analytically investigate the effect of modularity in new product development (NPD). Therefore, this research develops an analytical model of exploring the effect of modularity on firm profitability when a component built upon new technology is introduced into an existing product, and provides important managerial implications on the NPD and technology management, which can guide the decision making on modularity in practice. The results show that it is necessary to increase modularity level when i) the product is easy to upgrade, ii) the product's price should be high due to external factors, and iii) the effect of new technology investment is uncertain, while it is desirable to increase the investment cost for introducing new products with low demand elasticity for modularity.

• The Korean Journal of Financial Management
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• v.23 no.1
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• pp.69-100
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• 2006

We examine the effect of controlling shareholders ownership structure and related-party transactions(hereafter 'RPT') of publicly traded companies on their firm values during the post-IMF period. In the multivariate regression analysis using control variables such as firm size, capital structure, investment, dividend, profitability and industry dummy that might affect firm values, we find that there exists a significant negative relation between the controlling shareholders ownership structure and firm values proxied by Tobin's Q, and also find that there is a significant negative relation between RPT and the firm values. Those evidences seem to support the controlling shareholders' expropriation hypothesis. Additionally, we investigate the relation between ownership structure and rim value through the piecewise regression analysis. We find a significant 'inverse' U-shape pattern between the controlling shareholders ownership structure and firm values. This result is quite different from the existing literatures that have usually reported an U-shape pattern. In conclusion, the findings in this study do not support the notion that the ownership concentration to the controlling shareholders does negatively affect the firm values monotonically.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.41-53
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• 2019

Building a target capital structure is one of the most important decisions in corporate financial management. The purpose of this article is to identify the determinants of capital structure and adjustment mechanism toward the target leverage. The partial adjustment model was applied on a sample of 306 non-financial companies listed on Vietnam stock exchange market during the period of 2008-2017. By the fixed effect model estimation method, the research results have discovered the factors of growth opportunities, firm size, tangible fixed assets and firm's unique characteristics have a positive effect on the target capital structure of enterprises. Besides, profitability and dividend payment have a negative effect on the target capital structure of enterprises. Accordingly, the research results show that the average adjustment speed toward target leverage of the firms is 90.03%. Research results also demonstrate firms have higher or lower debt ratio than the target debt ratio, capital surplus or capital deficit also have an impact on the adjustment rate toward the target capital structure. The research results are consistent with the Dynamic Trade-off Theory. From this result, this article has provided policy implications for non-financial companies listed on Vietnam's stock market in building a reasonable target capital structure according to operating timeline to maximize enterprise value.

• Journal of Technology Innovation
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• v.4 no.1
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• pp.1-26
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• 1996

Traditional studies of new venture performance have focused on the characteristics of entrepreneurs and have shown conflicting results on the relationship between the characteristics and performance of new ventures. Recently, some researchers have broadened their search to include aspects of the industry and the strategy of new ventures. The purposes of this study are to identify wtrategic archetypes of new ventures based on the taxonomic approach and to explain the differences in new venture characteristics and performance among strategic archetypes. To find the strategic archetypes, 114 new venture CEOs from various industries were asked to describe their ventures' competitive strategy through 19 questionnaire items on competitive methods. Using factor analysis and subsequent cluster analysis, four archetypes were identified such as : versatile type, technology-driven type, market-oriented type, and cost reduction type. The results imply that there exist different types of venture strategy even among new technology-based venture firms in Korea, and show the differences in performance among strategic archetypes: market-oriented type and versatile type are better than cost reduction type in terms of growth rate and profitability. Because the venture strategy in identified as a major determinant of the venture performance in this study, the choice of venture strategy suitable for firm's industrial characteristics and internal resource bases becomes a very strategic decision for firm's sustained growth. Further studies are needed to strengthen some methodological limitations of the study.