Evidence on competitive advantage and superior stock market performance

Gjerde, Øystein; Knivsflå, Kjell Henry; Sættem, Frode

doi:10.1002/mde.1488

Cited by 13 publications

(9 citation statements)

References 37 publications

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“…This is corresponding to the concept of Porter (1980) that CA being used from businesses perspective by connecting CA with marketing concept. This important concept could create the CA in general which are cost leadership, differentiation, and market focusing (Porter, 1980;Barncy, 1991;Barncy, 2001;Ruiz-Aliseda & Zemsky, 2006;Gjerde, Knivsfla, & Saettem, 2010). Strategic management of SMEs is also very important to create CA in the competitive as an important key of business of developing countries to survive.…”

Section: Discussionmentioning

confidence: 99%

Competitive Advantages of Small and Medium Enterprises in Northern Thailand

Pongwiritthon¹,

Awirothananon²

2015

UCPA

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Section: Discussionmentioning

confidence: 99%

Competitive Advantages of Small and Medium Enterprises in Northern Thailand

Pongwiritthon¹,

Awirothananon²

2015

UCPA

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“…where OIi,t is the operating income of firm i at quarter t; and, NRi,t is the net revenue of firm i at quarter t. The variable aim to capture how market reacts to results of managerial decisions regarding firm costs structure. Wesley da Silva Lourenço -Luiz Cláudio Louzada -Paulo Victor Gomes Novaes Revista Universo Contábil, ISSN 1809-3337, FURB, Blumenau, v. 14, n. 4, p. 160-181, out./dez., 2018 Dhaliwal et al (2008) and Gjerde et al (2002) concurs that industry specific facts exert impact on firm performance variability. In this perspective, we use the Herfindhal-Hirshman as a metric of product market competition.…”

Section: Degree Of Operating Leveragementioning

confidence: 96%

The Moderating Role of Market Structure on the Relationship Between Firm Operational Performance and Degree of Operating Leverage

2019

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This article investigates the moderation role of market structure on the relationship between operational performance and firms’ costs composition. The Herfindahl-Hirschman Index (HHI) were adopted as proxy for market structure; for operational performance, Return on Invested Capital (ROIC); and for firms’ cost choices, the Degree of Operating Leverage (DOL). The database covers non-financial firms at Brazilian market from 1996 to 2016, third quarter. The output points toward to market structure moderation of the relationship between ROIC and DOL with an increase of the effect when markets move to a monopolistic structure. Overall results suggest the existence of a relation between firms’ operational performance and cost behavior, indicated by a negative relationship between ROIC and DOL. Furthermore, we notice a moderating role of Size on market structure (HHI) moderation role on the relationship between ROIC and DOL, in the extent that market structure moves towards a higher concentration level configuration, the moderating effect of HHI becomes more latent.

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“…We specifically focus on competitively advantage firms because these firms are more pressured to generate superior returns and maximise returns to stakeholders (Battisti et al, 2020). Following Gjerde et al (2010), we focus on firms' resource-based competitive advantage, that is, firms' ability to earn a return on their resources that is larger than firms' average cost of equity capital. Gjerde et al (2010) find that resource-based competitive advantage is almost four times more effective than the industry-based competitive advantage because its focuses on firms' ability to minimize their sources of funding.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Following Gjerde et al (2010), we focus on firms' resource-based competitive advantage, that is, firms' ability to earn a return on their resources that is larger than firms' average cost of equity capital. Gjerde et al (2010) find that resource-based competitive advantage is almost four times more effective than the industry-based competitive advantage because its focuses on firms' ability to minimize their sources of funding. Following MCCG (2017) suggestion, women on board in competitively advantage firms denotes a firms' effort in creating a diverse board that improves firms' long-term sustainability through higher ESG disclosures.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Women on boards, firms’ competitive advantage and its effect on ESG disclosure in Malaysia

Mohammad

Zaini²,

Kassim³

2022

SRJ

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Purpose The purpose of this paper is to investigate the effects of women on board moderated by firms’ competitive advantage on firms’ environmental, social and governance (ESG) disclosures. Design/methodology/approach The sample consists of 332 firm-year observations from the year 2012 to 2017 of 65 firms listed in Bursa Malaysia. To improve the robustness of this analysis, the authors adopt clustering techniques in the regression analysis. Sensitivity analysis is also conducted using two-stage least square regression and robust standard errors for panel regression with a cross-sectional dependence approach. Findings The findings of this research indicate that women on board encourage ESG and environmental disclosures. Nonetheless, in competitively advantaged firms, the authors find that the interaction between WOMENPER and COMADVANTAGE is negatively influencing ESG scores. However, no evidence is found to indicate that women on board in a competitively advantaged firm have an effect on the environmental scores of a firm. Research limitations/implications The findings urge regulators to ensure the appointment of qualified and competent women on board, particularly in competitively advantage firms. Practical implications Though firms with more women on board are associated with better ESG disclosures and environmental disclosures, the author’s additional analysis found that this is less pronounced in competitively advantage firms. Since a number of the competitive firms are owned by family firms as well as government-linked firms, the appointment of women should not be based on directors’ affiliation, network and family relationships. Originality/value To the best of authors’ knowledge, this is one of the few studies which seek to investigate women’s appointment in competitive advantage firms.

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Evidence on competitive advantage and superior stock market performance

Abstract: Abstract

Cited by 13 publications

References 37 publications

Competitive Advantages of Small and Medium Enterprises in Northern Thailand

Competitive Advantages of Small and Medium Enterprises in Northern Thailand

The Moderating Role of Market Structure on the Relationship Between Firm Operational Performance and Degree of Operating Leverage

Women on boards, firms’ competitive advantage and its effect on ESG disclosure in Malaysia

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