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This paper examines whether the ESG reporting transparency of listed firms in the UK can play a role in mitigating the impact of the COVID-19 pandemic. We investigate 350 UK firms in the FTSE350 index from 2016 to 2021 with daily data on stock performance and annual data on financial performance. The empirical results show that firms with a high ESG disclosure score have a lower volatility of stock performance during the COVID-19 pandemic. For these firms, the negative relationship between stock performance, as well as financial performance, and their main driving factors, is lower during the COVID-19 pandemic. Among these factors, we identify the lockdown announcement, quantitative easing announcement, and the intensity of news media coverage of the company. These results tend to indicate that the quantity of ESG data reported by firms can contribute to mitigating the impact of the COVID-19 pandemic on stock performance volatility and financial performance. © 2023 Journal of Innovation Economics and Management. All rights reserved.
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PurposeThis study models the effects of the COVID-19 pandemic on the performance of the private health-care sector in the Middle East and North Africa (MENA) countries. This paper aims to address the economic, societal and sustainability of the health-care sector.Design/methodology/approachData were collected from Bloomberg and the sample consists of 534 firm-year observations from 55 firms listed over 2010–2020. The authors apply panel data and control for the country and governance effects.FindingsThe authors found heterogeneous results regarding the three sub-sectors. The pandemic has a negative effect on the accounting and market performances of the "Pharmaceutical companies” and an insignificant impact on "Healthcare Management and Facilities Services.” Moreover, the impact of COVID-19 on health-care firms' performance depends on the country's economic classification and the degree of regulatory and governance frameworks.Research limitations/implicationsFurther studies may consider a larger sample and other regions. It is recommended to address the health-care sector's challenges to invest in new technologies such as "digital twin” and predictive and personalized medicine. It is worth testing model development theory and its effects on speeding up and designing models to ensure the proper functioning and developing mathematics to determine uncertainties in patient data and model predictions.Originality/valueTo the best of the authors' knowledge, this paper is novel as it is unique in modeling the impact of COVID-19 on the health-care public companies in the MENA region. The findings pinpoint firms' and countries' heterogeneous impacts on financial and market performances.
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This research aims to investigate the effect of COVID-19 on the performance of small and medium enterprises (SMEs) in emerging markets in Iran, Iraq and Jordan. In order to collect the required data, a standard questionnaire provided in the literature was used. The research period is the second quarter of 2022, and its population includes managers, accountants and auditors engaged in listed and non-listed companies. The research findings indicate that the outbreak of COVID-19 has affected SMEs' performance in investigated emerging markets. For the first time, this research has examined the impact of COVID-19 on the performance of SMEs in emerging markets. The research was conducted in the three countries of Iran, Iraq and Jordan, which have different environmental conditions indicating the impact of contextual factors on the effects of the spread of COVID-19. The results can be useful for different parties, such as SMEs' owners and regulatory bodies in similar markets.
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This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.
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The worldwide economy has been greatly impacted by COVID-19 pandemic, and it has had a huge impact on the capital markets. This paper aims to investigate the impact of COVID-19 on the performance of companies listed on the Stock Exchange of Thailand (SET) using quarterly financial data of listed companies from 2016 to 2021 to predict corporate performance. The results show that the COVID-19 outbreak negatively impacted Thai firm performance, especially in the service, resource, real estate, and manufacturing industries, due to the implementation of a wide range of policies to control the spread of the virus. The findings support earlier research that the pandemic has had a serious negative impact on firm performance. However, uncertainty will remain until COVID-19 ends;policy implementations should facilitate these suffering industries in the short and long runs. This study addresses the research gap regarding the impact of COVID-19 on emerging economic activity from a firm-level perspective. © 2023 Conscientia Beam. All Rights Reserved.
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Resumo Esta pesquisa analisa se empresas com melhores práticas socioambientais (ES) apresentam melhor desempenho que as demais empresas em momentos de crise. Utilizamos o choque exógeno causado pela pandemia da COVID-19 como estratégia de identificação. A amostra consiste de empresas brasileiras de capital aberto negociadas na B3, a bolsa brasileira. Os resultados mostram que firmas com maiores notas ES tiveram, durante o primeiro semestre de 2020, retornos anormais significativamente mais altos, menores volatilidades e melhores desempenhos operacionais medidos pelo ROA, margem operacional e giro de ativo. Nossos resultados contribuem para a literatura ao mostrarem que o investimento em boas práticas socioambientais desempenham um papel positivo nas empresas brasileiras, especialmente em períodos de crise.Alternate :This study investigates whether companies with superior environmental and social practices (ES) perform better than other companies in times of crisis. We use the exogenous shock caused by the COVID-19 pandemic as an identification strategy. The sample consists of Brazilian companies publicly traded on B3, the Brazilian stock exchange. Results show that, during the first semester of 2020, firms with higher ES scores had significantly higher abnormal returns, lower volatility, and better operating performance as measured by ROA, operational margin, and asset turnover. We show that investment in good environmental and social practices can benefit Brazilian companies in times of crisis.
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At a time when gender equality is a key priority of all international organizations, this paper can be considered a remarkable contribution to the role of women executives in firms' performance. More specifically, this study focuses on the effect of women holding positions of responsibility on firms' performance worldwide. For the purposes of our research, we applied cross-sectional and panel data analysis for all sectors at an international level from 2019, the year preceding the breakout of the pandemic crisis, to 2021, while the indicators used to measure the participation of women in executive positions are classified as ESG indices. The empirical analysis findings end up showing that the participation of women in executive positions positively affects firms' performance over time, while there is no material change observed before and during the COVID-19 pandemic period. More specifically, when the percent of women processing job positions of responsibility increases by 10%, then the index of profitability will increase from 1.4% to 1.8%, regardless of the measurement of female participation in executive positions used. The results of this study constitute a remarkable contribution to the promotion of the creative economy, the progress of societies, and sustainable development. The research's outcome can be primarily used by policymakers drawing up policies for achieving gender equality in the labor market and workplaces and by shareholders and firms' managers in order to trust females in executive positions in favor of their firms' financial performance. The current study is unique in that it focuses on the period before and during the COVID-19 period, as a period of high volatility in economic activity worldwide, while the sample includes firms from large and mid-cap companies belonging to developed and emerging markets. The above approach will contribute to providing more credible information related to the role of women executives in firms' performance.
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Corporate governance remains the focus of current research and a concept that continues to evolve to meet the needs of business managers. Faced with the need for companies to cope with a world characterized by perpetual change and successive economic crises (Prowse in Revue d'economie financiere 31:119-158, 1994), the identification of the results of the implementation of good governance mechanisms in the structure of the management of companies on financial performance remains a necessity that helps managers and researchers specialized in management sciences and financial accounting to have a better visibility on the importance of corporate governance. It should be mentioned that the economic environment and the characteristics of the sectors of activity of the companies remain a relevant criterion in the study of the relation between the governance of the companies and their financial performance. In this sense, we have tried through this research work to study the impact of the implementation of effective corporate governance on the financial performance of 160 companies in the UK between 2005 and 2018 while taking into account the specificity of the business sectors. Through our study, we used multivariate regressions based on FGLS models while dividing our sample to several clusters. As a result, we found that the implementation of good corporate governance leads to the improvement of the financial performance of companies measured by the return on equity. As a motivation, it must be said that this study can be of major importance for future studies that want to make comparisons on the sectoral and temporal level. Indeed, this study gives the possibility for future research work to make comparative studies based on comparisons for different sectors of activity in the UK before and after the Brexit and also after the COVID 19 period.
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A lack of collaborative innovation and absorptive capacity in firms causes projects to fail. Managers/employees in small and medium enterprises (SMEs) are not sufficiently aware of the practices of intellectual capital and nor do they collect, share, transfer, and utilize knowledge properly. This current study, therefore, focuses on the relationship between collaborative innovation and the financial performance of Portuguese IT sector SMEs, with a mediating role of absorptive capacity and a moderating role of intellectual capital based on three sub-domains (human capital, organizational capital, and social capital). Close-ended questionnaires were used to obtain data from 308 employees and managers. Owing to the COVID-19 pandemic, data were also collected through an online survey method. The simple random sampling technique was used to collect data and analyze it using the PLS-SEM method. The results show that collaborative innovation has a positive and significant impact on the financial performance of IT firms in Portugal. Absorptive capacity is considered a potential mediator between collaborative innovation and financial performance. Moreover, the moderating role of intellectual capital strengthens the relationship between collaborative innovation and absorptive capacity. © 2023, The Author(s).
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In order to combat the disruption caused by COVID-19, it is essential for the company's operations to implement flexibility and responsiveness in their work. In this study, the researchers will investigate the effect of these two variables on the financial performance of the company. The current study evaluates the data obtained from 215 manufacturing companies in Malaysia. The data is collected and analysed using PLS-SEM in order to provide an in-depth look at the issue. The results show that flexibility and responsiveness are positively related to a company's financial condition. The primary contribution of this study is to provide the management of company with a ground-breaking idea of dealing with a pandemic situation in the current business environment. A company's capacity to survive also depends on planning changes, particularly those that affect supply chain management and production operations. When making tough decisions, managers must be less rigid and more flexible. Demand management, inventory management, supply chain management, and operation management are some of the things that call for flexibility and responsiveness. The business will experience losses if they are unable to meet the demands of the COVID-19 era and maintain business operations. Of course, this will have an impact on the company's financial performance. © 2023 by the authors;licensee Online Academic Press, USA.
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The Covid-19 pandemic has significantly impacted the economy, including the banking industry. The im-pact on the banking industry is a decline in the health of banks. One form of bank soundness assessment can be seen from the movement of financial ratios, including Non-Performing Financing (NPF), Capital Adequacy Ratio (CAR), Return on Assets (RoA), and Operational Expenditure to Operating Income (BOPO), and Financing to Deposits Ra-tio (FDR). This study aimed to examine the impact of the implementation of banking restructuring policies on the fi-nancial performance of Islamic Commercial Banks in Indonesia. This study used an observation period of 36 months, calculated 1 year before and after the implementation of rules No.11/POJK.03/2020. The sampling method used purposive sampling with 119 observational data samples. Hypothesis testing used the independent Mann-Whitney t-test since the data were not normally distributed. The results showed that the banking restructuring policy could only improve the bank's financial performance, namely CAR and FDR, but not the ratio of NPF, ROA, and BOPO. The contribution of this study can be used as one of the basics for assessing the effectiveness of implement-ing government policies. Copyright © 2022- All Rights Reserved.
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This study aims to provide empirical evidence regarding the impact of the COVID-19 pandemic on banking performance in Indonesia. This study examines differences in Indonesian banking performance before and during the COVID-19 pandemic. Banking performance in this study was measured using the CAMEL measure. The analysis was carried out by conducting a different test using the SPSS application version 22.0. Based on the results of tests conducted on 205 observations on banking from 2018 to 2021, it was found that the CAR, ROA, ROE, BOPO, LDR, and Customer Deposit levels from banks in Indonesia had a significant difference between before and during the COVID-19 pandemic. However, there was no significant difference between the NPL banking level in Indonesia before and during the COVID-19 pandemic. This proves that the COVID-19 pandemic has harmed banking in Indonesia, so the government must pay attention to the current banking strength to survive and recover after the COVID-19 pandemic. © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
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The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies;(2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value;(2) profitability has a positive significant effect on firm value;(3) dividend payment has no significant effect on firm value;(4) inflation has a negative significant effect on firm value;(5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.
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Motivated from the shortage of the existing research studies on impacts of dangerously contagious diseases on firms' financial performance, this study sheds light on the impacts of Coronavirus (Covid-19) outbreak on financial performance upon on the quarterly data of 126 Chinese listed firms across 16 industries. Overall, the Covid-19 outbreak reduced Chinese listed firms' financial performance proxied by the revenue growth rate, ROA, ROE, and asset turnover. This outbreak's negative effects on Chinese firms' profitability were much smaller than that on their revenue growth rates. While this outbreak's negative effects on financial performance of Chinese listed firms were bigger for those that were seriously affected by this pandemic like airlines, travel, and entertainment (ATE), this pandemic's effects were positive for the medicine industry. In the meanwhile, Chinese listed firms that located in high-risk regions suffered a bigger financial loss during the outbreak, and especially there was a strong Hubei effect. The corporate culture and CSR moderated the inverse relationship between this outbreak and Chinese firms' financial performance. Findings of this study contribute to enrich the existing literature on impacts of the Covid-19 outbreak on firms' financial performance worldwide and suggest helpful practical and theoretical implications.
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Customer satisfaction is one of the important factors affecting organizational performance. There are five dimensions to investigate customer satisfaction which are tangible, reliability, responsiveness, assurance, and empathy. Chengdu ReadKing Advertising Decoration Engineering Co., Ltd. was selected as an example to analyze the situation of the five dimensions of customer satisfaction. The purpose of the study is to analyze the customer satisfaction and evaluate the current situation of customer service in 2021. The sample size is randomly 100 customers from Chengdu ReadKing Advertising Decoration Engineering Co., Ltd. A mixed research method combining quantitative and qualitative research was adopted. The descriptive analysis and Multiple Linear Regression were applied with the interview as the quantitative and the qualitative analyses. The result shows that assurance, responsiveness, and empathy are the significant variables which influenced the customer satisfaction. The strongest influence toward the satisfaction is assurance following by responsiveness and empathy respectively.
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This paper examines whether gender diversity (GD) on corporate boards influences financial performance (FP) of Indian firms using System Generalized Methods of Moments (GMM) methods by considering panel data of 364 firms during 2017 to 2021, comprising of 1820 firm-year observations. The study reveals that the mere presence of a woman director (WD) on boards makes no difference in financial performance. Presence of WDs as a significant portion of the boards and their active roles in the functioning and governance of companies positively contribute to firms' financial performances and economic value creation. Regarding other governance parameters, the study shows that larger boards do not necessarily improve firm performance. Also, independent directors do not necessarily add value to corporate performance and value creation. While a higher promoter's stake is an important factor for Indian companies to drive corporate performance, firms with separate CEO and chairperson outperform firms with CEO duality. The study also reveals that the covid 19 pandemic has negatively influenced the financial performance and economic profit generation of the Indian firms. This study is important for several reasons. First, this study considers the period (2017–2021) when Indian companies adopted new financial reporting practices (IND-AS) in line with International Financial Reporting System (IFRS), the mandatory quota system of women directors' appointment is implemented and new corporate governance norms are implemented. Hence, our study contributes to the literature by proving meaningful insights on the role of gender diversity and other corporate governance parameters on financial performance of Indian firms in the light of newly adopted accounting and financial reporting practices. Second, few previous India based studies have mostly used pooled OLS or fixed effect models, and did not address the endogeneity problem in different forms like Dynamic Endogeneity, Simultaneity, and Unobserved Heterogeneity. This paper addresses the endogeneity problem appropriately by using the system generalized method of moments (GMM) while modelling the relation between WDs and firms' FP. Therefore, the findings of this study are more reliable and unbiased and can be useful for effective policy making on gender diversity and corporate governance issues. Third, few prior studies which have looked into the role of WDs on FP of Indian firms, have mostly used return on assets (ROA), return on equity (ROE) and Tobin's Q as performance parameters. Here, in addition to ROA, ROE and Tobin's Q, we also use economic value added (EVA) as indicators of corporate performance to understand the role of WDs on economic value creation for companies. The EVA is considered as modern technique to measure the economic profit earned by a firm, and it has gained huge popularity among companies as an improved technique for measuring financial performance for companies. To the best of our knowledge, the role of WDs on economic value creation by firms has not been investigated before particularly in the Indian context. This is another unique contribution of this study. Fourth, the Covid 19 pandemic had impacted global economy severely and India was no exception. Financial performances of most Indian firms were negatively impacted due to the nationwide lockdown and uncertainties about production, revenue and earnings. This study considers both the pre and post Covid 19 pandemic period in examining our central research question using a year dummy. Therefore, our study also captures whether the covid 19 pandemic has actually impacted the financial performance of Indian firms, while modelling this relation. This is another valuable and unique contribution of this study to the literature. The findings of this study provide an understanding of how board gender diversity and other governance parameters influence financial performance of Indian firms in an emerging market context. The outcomes are also explained and aligned with the relevant policy implications in th light of recent Indian corporate governance norms and policies. These findings are useful to the companies and policymakers, as they can use these findings while designing effective boards, which can be useful in improving firm performance. Board of directors, investors, regulators, and policymakers can effectively use these findings to understand how gender diverse boards and other corporate governance parameters influence firms' financial performance under the concentrated ownership pattern.
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The present study made use of the sector balance sheets of "Q-861 Hospital Services Sub-Sector” for the years 2015–2020, which was recently published by the Central Bank of the Republic of Turkey (TCMB), which maintains the largest financial data on the hospital services sub-sector. The 6-year time period above was selected for the purposes of the study on the grounds that TCMB published the most up-to-date sector balance sheets for the said timeframe. The present study also aimed to investigate the financial structure of the hospitals operating in this sector in Turkey prior to the COVID-19 pandemic across the world. In general, ratio analysis, parametric, and non-parametric methods are used to measure the performance levels of hospital enterprises. The present study employed ratio analysis, a financial analysis method to assess the performance levels thereof. The financial performance of the sector was assessed in the study using 15 criteria, including liquidity, financial, activity, and profitability ratios. © 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
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Purpose: This study aims to illustrate the impact of the corona pandemic (COVID-19) on the financial performance in industrial companies in Jordan. Theoretical framework: This study depend on review of literature review to determine variables of study and its relationship, has been determined all variables: corona pandemic (COVID-19) is independent variable, dependent variables was divide into three axes: profitability, liquidity and debts each of them was measure by some financial ratios that its will show later in hypotheses. Design/Methodology/Approach: The study was applied on 16 industrial companies in Jordan, their quarterly financial statements were collected from Amman's stock exchange from the first quarter of the year 2017 to the end of the third quarter of the year 2021. Finding: It concluded to the fact that there is a negative impact on profitability reflected by the corona pandemic (COVID-19), and another positive impact on debts, and has no impact on the liquidity. Research, Practical & Social implications: The implication drawn from this study is that it show to researchers and interested of investment, that causes it corona pandemic (COVID-19) impact on performance of companies listed on important sector in Jordan is industrial Sector, which is represented 60% from all investments. Originality/value: The value of the study's originality in the past two years is the world was invaded by a new disease called Corona (COVID-19), and the disease enforced some changes on companies activities and performances it due to the closure works of companies. © 2023 AOS-Estratagia and Inovacao. All rights reserved.
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This study investigates the effects of supply chain (SCRE) and robustness (SCRO) on COVID-19 super disruption impacts and firm's financial performance by mobilizing the resources orchestration theory (ROT) as the main theoretical framework. We adopt structural equation modeling analysis of data collected from 289 French companies. The findings reveal the significantly positive influence of resources orchestration on SCRE and SCRO and the role of the latter in mitigating the pandemic disruption impacts. Notwithstanding, depending on whether the measures are objective or subjective, the effects of SCRE and SCRO on financial performance vary. Overall, this paper presents empirical evidence of the influence of both of SCRE and SCRO on pandemic disruption impacts and financial performance. Furthermore, this research provides insights to guide practitioners and decision makers regarding resources orchestration and the deployment of SCRE and SCRO.
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Political events in 2022, the consequences of the COVID-19 coronavirus, bad management, inadequate restructuring, are just some of the causes of the crisis and poor business performance of many companies. The research results show that companies in the EU mostly use internal restructuring strategy (39.60%) and business expansion strategy (38.25%). Assessments of the area of application of restructuring strategies according to (EBRD) (The European Bank for Reconstruction and Development) show that Bosnia and Herzegovina has stagnated in terms of restructuring activities (Grades -2, up to 2) in the last 20 years. In addition to the partial approach of each company, we developed and modeled an integral approach and focused the work on measuring the impact of restructuring activities on the state and development of the economy of Bosnia and Herzegovina, where positive impact results were obtained (0.701081731). The aim of the paper is to point out the influence of strategic restructuring and economic freedoms on the development of the economy of Bosnia and Herzegovina. In the paper, based on statistical analysis, we tested the impact and evaluations of restructuring strategies of companies in Bosnia and Herzegovina compared to companies in the European Union. The results showed a statistically significant difference compared to companies from Western Europe, Central Europe and Eastern Europe.