• Title, Summary, Keyword: Corporate performance

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SG&A Expenditures, Corporate Social Responsibility, and Future Firm Performance (판매관리비와 기업의 사회적 책임활동, 그리고 미래 기업성과와의 관계)

  • Lim, Seung-Yeon
    • Journal of Convergence for Information Technology
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    • v.10 no.6
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    • pp.70-76
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    • 2020
  • This study examines whether there is a moderating effect of corporate social responsibility(CSR) on the relation between sales, general, and administrative(SG&A) expenditures and future corporate performance. SG&A expenditures are decomposed into maintenance and investment components and the latter component is focused. Using 968 Korean firm-year observations with CSR scores in the KOSPI market for the period of 2012-2017, this study investigates the relation between SG&A investment component and future corporate performance and then the moderate effect of CSR on its relation. Main results show that the SG&A investment component increases the future corporate performance and the moderate effect of CSR on its relation is more positively explicit. This finding implies that the effect of SG&A investment component on corporate performance is differentiated according to the level of CSR.

Association between Corporate Governance and Corporate Performance in Iran

  • Moradi, Mahdi;Shiri, Mahmood Mousavi;Salehi, Mahdi;Piri, Habib
    • The Journal of Distribution Science
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    • v.11 no.11
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    • pp.5-11
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    • 2013
  • Purpose - Considering corporate companies that are continually growing and bearing in mind the theory of agency, how confident can stakeholders be about their benefits in relation to managers' decisions? Previous research has indicated that the type of corporate governance can have an effective impact on companies' performance. The current study aims to investigate the impact of ownership structure on listed companies on the Tehran Stock Exchange. Research Design, Data, and Methodology - Through use of the correlation coefficient, the results indicate a positive correlation among the percentage of common stock held by board members, the percentage of non-executive board members, and separation of the positions of chairperson of the board of directors and managing director. Results - Based on the return on assets index, only the correlation between the proportion of ownership of the managing director and financial investment company ownership is significant. Conclusion -Managers can potentially make decisions that benefit themselves but are detrimental to shareholders' interests. Corporate governance is a factor that can mitigate agency costs. Corporate governance comprises the laws, regulations, structures, processes, cultures, and systems that lead to the achievement of objectives such as accountability, transparency, justice, and stakeholders' rights.

The Impact of Innovation Capability of SMEs Companies on Corporate Performance : Focusing on the Mediating Effect of Competitive Advantage (중소기업의 혁신역량이 기업성과에 미치는 영향 : 경쟁우위의 매개효과를 중심으로)

  • Kim, Jong Heon;Koo, Il Seob
    • Journal of the Korea Safety Management and Science
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    • v.22 no.1
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    • pp.51-59
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    • 2020
  • The importance of innovative capability, the driving force behind innovation as a company's intangible resources, is increasing. In general, companies with high innovation capability are more likely to be successful in innovation, which can be expected to have a positive impact on corporate performance. The innovation capacity of SMEs considered in this study is R&D capability and manufacturing capability. The reason for this is that not only the continuous efforts to strengthen the competitiveness of SMEs are focused on stabilizing manufacturing capability, but also considering the situation in which governmental support for SMEs' R&D capability has been actively developed. This study examines whether R&D capability and manufacturing capability have a significant influence on corporate performance and securing competitive advantage, and analyzes whether competitive advantage acts as a mediator between innovation capability and corporate performance through regression analysis. SPSS 23.0 software was used for the empirical analysis of the data obtained through the survey. The research results are as follows. First, both R&D and manufacturing capabilities of SMEs were found to have a significant positive effect on corporate performance. Second, manufacturing capability had a significant effect on securing competitive advantage of SMEs, but R&D capability was not significant. Third, the competitive advantage of SMEs was found to play a mediating role between manufacturing capability and corporate performance.

Effects of Corporate Innovative Employees' Entrepreneurial Competencies on Performance: Based on Corporate Entrepreneurship and Entrepreneurial Performance (혁신조직 구성원의 기업가적 특성이 기대성과에 미치는 영향: 사내 기업가정신성과와 경영기대성과를 중심으로)

  • Han, Sangguk;Park, Jae-Whan
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.12 no.4
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    • pp.25-34
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    • 2017
  • In market-oriented, infinite competition era, even the world's top-tier companies can be collapsed suddenly. In order to continue to grow, a company must constantly introduce new value to the market. What is required in today's business environment is the manifestation of entrepreneurship. The purpose of this study is to examine the relationship between corporate entrepreneurship and business performance and organizational commitment. The results of the empirical analysis are based on the data from companies which have more than 20,000 employees and 30 years business history. Structural Equation Modeling analysis was conducted to confirm the relationship between corporate entrepreneurship, business performance, and organizational commitment. Also, multiple Regression Analysis was conducted to confirm the relationship between entrepreneurial competency, corporate entrepreneurship performance, and management expectation performance. The causality between latent variables was significant. As a result, it was proved that entrepreneurial competencies had the significant effect on both corporate entrepreneurship performance and management expectation performance. Also, the study result was proved that organizational commitment showed the mediating effect between entrepreneurial competencies and corporate entrepreneurship performance. Based on the study results, the needs for developing individuals equipping entrepreneurial competencies was identified for increased business performance which was accomplished through the manifestation of entrepreneurship.

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Board Gender Diversity and Corporate Sustainability Performance: Mediating Role of Enterprise Risk Management

  • FAKIR, A.N.M. Asaduzzaman;JUSOH, Ruzita
    • The Journal of Asian Finance, Economics, and Business
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    • v.7 no.6
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    • pp.351-363
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    • 2020
  • The objective of this paper is to explore how board gender diversity affects corporate sustainability performance. Therefore, this paper examines the direct association between board gender diversity with corporate sustainability performance and the mediation effect of enterprise risk management (ERM) on this association. The study employed a cross-sectional survey method. Data were collected from annual reports, websites, and through the questionnaires that were distributed to Chief Financial Officers (CFOs) of all the listed companies of Dhaka Stock Exchange, Bangladesh. The partial least square technique of Structural Equation Modelling (SEM) approach was employed for data analysis. The result did not find support for the direct association between board gender diversity and sustainability performance in Bangladesh context. This implies that contextual factors, such as, male-dominant board, appointment of female directors based on family ties, lack of education and expertise etc. may discount gender diversity direct influence on sustainability performance. However, the study finds strong support for the mediating role of ERM use within the corporate structure. Further analysis of indirect effect suggests that ERM use mediates the relationship of board gender diversity and sustainability performance in full. This implies that in the Bangladesh context effective use of ERM is highly recommended.

The Impact of Corporate Strategies and Government Support Policies on the Corporate Performance: Focusing on Certification of Innovation (기업의 전략 및 정부 지원 정책이 기업 성과에 미치는 영향: 혁신형 인증을 중심으로)

  • Kim, Dae Jin;Park, Da in
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.1
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    • pp.13-27
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    • 2016
  • Companies strive to have the ability to flexibly respond to environmental changes in modern society with its rapidly changing business environment. That is, companies try to achieve the corporate performance by using a variety of strategies since companies that don't go along with changes in industry are likely to fall behind. Also, the corporate performance is a key element in national competitiveness, and government is willing to support companies to maximize their performance in various ways. This study examines whether there is a difference between corporate strategies and government policies according to the retention and the type of certification of innovation. The company's strategy configuration effort is largely divided into exploration and exploitation of external knowledge, while the government's policy is divided into direct support, indirect support, and financial support. The corporate performance is analyzed using technological performance; innovative perspective and the sales; and the actual corporate performance as proxy variables. As a result, the variable affecting the performance differs according to the retention of certification of innovation. The variable affecting the corporate performance differs according to the type of certification of innovation as well. Therefore, it was found that companies can achieve the corporate performance by considering the situation at hand and the differentiated action strategies depending on the type of certification of innovation.

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Effects of Innovativeness of External Networks on Corporate Innovativeness and Innovation Performance - Focusing on Comparison of Business Categories according to the Technology Level of the Manufacturing Industry -

  • Yoh, Eun-Ah
    • The International Journal of Costume Culture
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    • v.12 no.2
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    • pp.129-140
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    • 2009
  • In this study, the effect of innovativeness of external networks on the corporate innovativeness and innovation performance were explored based on web survey data collected from 230 manufacturing companies. Specifically, according to the manufacturers' business categories divided by the technology level, three groups such as advance technology (electronic/IT), mid- to high technology (automobile/machine), and low technology (textile/clothing) companies were investigated to find out which external network influences corporate innovativeness and innovation performance. In the result, textile/clothing companies were not different in company size, history, and innovation effort from advanced technology and mid- to high technology companies. Collectively, the innovativeness of external networks affected corporate innovativeness and innovation performance. In the result by a business category, innovativeness and innovation performance of textile/clothing companies were affected by the innovativeness of competitors, whereas automobile/machine companies in the mid- to high technology group were affected by suppliers. In addition, advanced technology (electronics/IT) were affected by buyers and competitors. These differences suggest that the way to use vertical networks toward upstream (e.g., suppliers) and downstream (e. g., buyers) as well as horizontal networks toward competitors can be different by the business category of manufacturers. The result would provide implications for the academia and the industry.

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The Role of Cooperative R&D and Intangible Assets in Innovation and Corporate Performance of R&D Investment in Manufacturing Sectors (제조업종 연구개발투자의 혁신 및 기업성과에서 공동연구개발과 무형자산의 역할)

  • Koo, Hoonyoung
    • Journal of the Society of Korea Industrial and Systems Engineering
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    • v.43 no.1
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    • pp.79-86
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    • 2020
  • The effects of R&D investment on innovation such as patents and intangible assets, and the effect on the corporate performance such as revenue and profit growth, were analyzed using path analysis. In particular, this study compared and analyzed the performances of non-cooperative R&D and cooperative R&D. The results of this study are summarized as follows. First, R&D investment has a significant impact on innovation performance. This supports the existing research results. Second, patents have a significant impact on intangible asset growth. Third, in the case of corporate groups carrying out cooperative R&D, intangible asset growth forms a significant causal relationship with revenue growth. Fourth, in case of cooperative R&D, intangible asset growth has a significant mediating effect between patent and revenue growth. Like the existing research, the results of this research support the innovation performance of R&D investment. It also supports the existing argument that the results of cooperative R&D are more favorable to increase corporate value. However, unlike the existing research, we found a path leading to increased revenue through patents and intangible assets, and confirmed that such a path is likely to be achieved through cooperative R & D rather than internal R&D.

Moderate Effect of SCM Strategy on Relationship between Environmental Management Practice and Corporate Performance in China (중국 기업들의 환경경영 역량 개발과 성과 간 관계에 대한 공급사슬관리 전략의 조절 효과)

  • Kim, Yeonggil;Park, Jeong Soo
    • Journal of the Korean society of supply chain management
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    • v.18 no.2
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    • pp.9-16
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    • 2018
  • Our first purpose of this research is to verify whether there is a positive relationship between improving environmental practice and corporate performance or not. In the second stage of our study, we tried to confirm whether implementing collaboration strategy and information sharing strategy of Supply Chain Management practices have positive moderate effect on the relationship respectively. To verify those research questions, we conducted empirical surveys on 187 companies in Shanghai in China. As the results of those surveys, we could verify that improving companies' environmental management practice affects positively on corporate performance. Moreover, as the further results of moderate regression model analysis, implementing collaboration strategy of SCM has positive moderate effect on the relationship between environmental management practice and corporate performance, while implementing information sharing strategy of SCM does not. These results provide us with a managerial implication that more enhancement in performance can be expected by improving companies' environmental management practices and implementing collaboration strategy of SCM at the same time.