ABSTRACT
This research investigates the influence of bank loans on Chinese listed companies' performance by collecting data on bank loan amounts and indicators used to measure performance, such as return on assets (ROA) and Tobin's Q, semiannually from 2015 to 2020. Pooling panel regression models are employed to determine the relationship between firms' performance and their amount of bank loans. This study contributes to the literature by controlling for additional bank loan characteristics and comparing the relevance between bank loans and bond issuance. The authors also find that the relationship between firm performance and bank loans shows a nonlinear concave relationship, suggesting the negative impact is more severe in the high loan-to-asset region. The subsample after 2018 shows a significantly positive relationship, indicating that the impact of COVID-19 might alter the prevalent relationship. In addition, short-term debt has a more noticeable negative impact on firm performance than long-term debt. Both results become weaker after COVID-19. This chapter can help listed companies to trade off using long-term or short-term bank loans as their debt financing methods and approach a better capital structure. © 2023 by Emerald Publishing Limited.
ABSTRACT
Orientation: Governments across the world have adopted a variety of preventative measures to curb the spread of the coronavirus disease 2019 (COVID-19). The full socioeconomic costs present a significant threat to economic growth, with developing economies such as South Africa predicted to be the worst affected. Research purpose: This study assessed the impact of COVID-19 on company performance based on the various industry sectors of the Johannesburg Securities Exchange (JSE) of South Africa. Motivation for the study: The study builds on the growing body of knowledge on the impact of COVID-19 on company performance in a South African context. Research approach and method: All JSE-listed companies were analysed for the period 2014–2020. Descriptive statistics and regression analyses were applied to assess the impact of COVID-19 on company performance per industry sector and to identify the mechanisms through which company performance was affected during the pandemic year. Main findings: Company performance per JSE industry sector suffered a significant negative impact during the 2020 pandemic year. Sectors were affected differently owing to the idiosyncratic nature of each industry. Cash-flow-related variables significantly affected company performance during the pandemic year. Practical implications: A healthy cash flow is paramount in times of crisis. Investors and other stakeholders should be cognisant of how industry sector idiosyncrasies affect company performance during crises. Contribution: Results may provide insights into the effect of COVID-19 on company performance per industry sector in South Africa, to support the mitigation of the negative consequences of COVID-19 and future crises or pandemics.
ABSTRACT
Zagreb Stock Exchange (ZSE) represents relatively small emerging-market, founded in early 90's as main Croatian stock market. Its main index CROBEX (Croatian Bourse Index) was firstly introduced on 1.9.1997. and it is calculated on daily basis since then, with starting value of one thousand (1.000) points. It is a price index, consisting of 15-25 shares that are included according to its free float market capitalization and revised biannually - every March and September. CROBEX all time high value (A TH) was recorded on January 4, 2008 with 5.292,14 points (closed at 5.279,14). Global financial crises in 2008 caused CROBEX to rapidly decline from +5.000 points to values -1.500, where it averaged through following years with rare exception of breaking psychological barrier of 2.000 points. CROBEX main growth was mainly achieved in period 2004-2008, and this paper aims to show its downfall, and disability to properly recover ever since. Thus is of relevant importance since stock market indices not only show the main movements of a certain stock market, but also represent good indicators of economic trends in general.
ABSTRACT
This paper presents the results of an empirical study, conducted during the months of February to March 2021, with the objective of analyzing innovative activity in product, process and organizational innovation and its impact on the performance of MSMEs. An online survey was conducted with the participation of 430 companies stratified according to sector (Industry, Construction, Commerce and Services) and size (micro, small and medium enterprises). The model used was multiple linear regression, whose response variable was company performance and the explanatory variables were product, process and organizational innovations. The results showed that process and organizational innovations were statistically significant, while product innovations were not significant. The coefficients were positive, implying that the higher the degree of process and organizational innovation, the higher the company's performance is expected to be. These innovations included changes in production processes, acquisition of new equipment, improvements in management, new procurement and purchasing processes, and changes in sales and commercial management. All these innovations were made during the pandemic period. © 2022 IEEE.
ABSTRACT
Trucking occupies the largest Indonesian transportation market share, making this sector a crucial contributor to the Indonesian supply chain. Any problem in freight transportation impacts the entire supply chain. This study explores how trucking companies were affected by the COVID-19 pandemic and what factors contributed to their resilience. A total of 190 Indonesian trucking companies were involved in this research. This study demonstrates that trucking companies' performance was significantly affected by both the COVID-19 pandemic and companies' resilience. Their resilience was affected by various factors, including the adoption of digital technologies, strength of financial resources, risk and business continuity management, and relationships with customers. Even though financial resource management directly affected company performance, the effect was more significant when company resilience was a mediating factor between financial resources management and company performance. Hence, survival frameworks and managerial action should emphasize these factors to enhance company resilience and performance. However, successful application of this in the trucking industry still requires further exploration. © 2022 Elsevier Ltd
ABSTRACT
Humanity has faced many crises in the past, such as pandemics, wars, and economic crises, and other crises are certain to come in the future;however, emerging technologies have a role to play in improving companies' resilience in the face of such crises. The coronavirus (COVID-19) pandemic has led to human, technological, and managerial constraints for manufacturing companies due to scarce resources or supply chain (SC) disruptions. The research goal of this paper is to investigate whether Industry 4.0 implementation improved companies' resilience and whether companies' performance maintained stability during the COVID-19 outbreak. Composite-based structural equation modeling is applied to analyse data collected from 207 manufacturing companies. The theoretical model is grounded in the Practice-Based View (PBV) theory. The research findings show that operational responses based on Industry 4.0, smart manufacturing practices, and smart capabilities enable manufacturers to build resilience and quickly mitigate performance loss in times of global crisis. Therefore, the results demonstrate that Industry 4.0 implementation provides resilience for companies through flexibility, reliability, robustness, and responsiveness. The main practical implication of this study is to support managers in achieving manufacturing performance stability during disrupted times, such as the COVID-19 crisis, using Industry 4.0 approaches to make their companies more resilient and prepared to face future challenges and crises. © 2022 Elsevier B.V.
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The study examined the implications of the recent pandemic on the corporate governance, remuneration and corporate sustainability performance of South African listed companies. Data from 42 companies was analyzed using the panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods from 2010-2021. Findings revealed that the pandemic negatively impacted the selected companies. This study revealed that the pandemic had a good impact on some companies and not just bad ones as claimed by previous researchers. Results from COVID-19-related expenses, debt-to-equity ratios and staff costs revealed a negative but significant result in the estimated model. Other variables such as current ratios, net profit margins and board diversity revealed a positive and significant relationship with all the dependent variables. Hence, a very severe implication of the pandemic on the performance of companies is confirmed through COVID-19related expenses, staff costs and directors' remuneration. These have a very strong negative impact on the future performance, survival, and sustainability of the selected companies. Lastly, a strong relationship between corporate governance and corporate sustainability performance was confirmed as shown by ROA, board size, directors' remunerations and board diversity. This study provides insight for stakeholders such as governments, directors and policymakers to develop both preventive and proactive policies to protect and guide companies from future similar pandemics. To avert and prevent future negative implications on companies, this study recommends a well-structured scheme for all of the company's staff, cash reserves and IT governance. © 2023, Innovative Research Publishing. All rights reserved.
ABSTRACT
Trucking occupies the largest Indonesian transportation market share, making this sector a crucial contributor to the Indonesian supply chain. Any problem in freight transportation impacts the entire supply chain. This study explores how trucking companies were affected by the COVID-19 pandemic and what factors contributed to their resilience. A total of 190 Indonesian trucking companies were involved in this research. This study demonstrates that trucking companies’ performance was significantly affected by both the COVID-19 pandemic and companies' resilience. Their resilience was affected by various factors, including the adoption of digital technologies, strength of financial resources, risk and business continuity management, and relationships with customers. Even though financial resource management directly affected company performance, the effect was more significant when company resilience was a mediating factor between financial resources management and company performance. Hence, survival frameworks and managerial action should emphasize these factors to enhance company resilience and performance. However, successful application of this in the trucking industry still requires further exploration.
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This study investigated the effect of corporate governance on corporate risk management. By using the regression analysis method, different results on the effects of the variables independent commissioners, female commissioners, meeting frequency, and audit committee members' expertise background on corporate risk management were obtained. In addition, companies in Singapore that had high levels of risk management activities were found to experience faster recovery after the crisis caused by the COVID-19 pandemic compared to other countries (Malaysia, Indonesia, and the Philippines). Overall, this study concludes that corporate governance has an important role in improving the risk management activities of a firm. This study may serve as a consideration for corporate governance implementation to improve corporate risk management.
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There is a great deal of literature regarding the performance of listed companies during periods of financial distress and/or financial crisis. However, very few of them considered the interaction of companies and its impact on performance. This paper introduces network structure and a spatial quantile autoregressive model to study the heterogeneous effect of exogenous variables on the different quantiles of company performance during COVID-19 pandemic. We find that the interconnectedness between listed companies in China changed significantly after the outbreak of COVID-19. The pandemic outbreak, as well as company size, robustness of the supply chain, and other exogenous variables, significantly affect company performance. In addition, we identify four major drivers of company performance from the perspective of spatial analysis. We also find that the impact of explanatory variables shows distributional heterogeneity.
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This study analyzes the relationship between Corporate Governance and firm’s performance, considering a sample of Portuguese listed firms for the 2010-2020 period, exploring also the effect of COVID-19 on companies’ performance. The results show that higher level of managerial ownership and gender diversity impact positively on firms’ performance. However, no evidence was found that a representation of three or more female directors leads to an increase in performance. In addition, the results suggest that there is a negative relationship between leverage and performance when performance is analyzed with a market-based performance measure. Finally, the study found evidence that the COVID-19 had a negative impact on corporate performance. © 2022 IEEE Computer Society. All rights reserved.