How do formal and informal institutions influence firm profitability in emerging countries?

Kafouros, Mario; Chandrashekar, Subramanya Prasad; Aliyev, Murod; Au, Alan

doi:10.1016/j.intman.2021.100890

Cited by 26 publications

(20 citation statements)

References 135 publications

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“…Therefore, this stated theme emphasizes, in the context of innovation, the opportunities for multinational corporations, local institutions, and stakeholders [ 85 ]. In any case, legal systems in emerging countries must be strengthened by harder competition laws that encourage the kind of competition that is based on innovation [ 119 ]; moreover, emerging market multinational enterprises have consolidated their global presence recently, challenging international business’ theories [ 120 ]; consequently, strengths and weaknesses are more pronounced when firms face competitors from emerging markets [ 121 ].…”

Section: Discussionmentioning

confidence: 99%

Innovation and international business: A systematic literature review

Fernández

2023

Heliyon

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Section: Discussionmentioning

confidence: 99%

Innovation and international business: A systematic literature review

Fernández

2023

Heliyon

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“…Formal and informal institutions complement each other (Peng et al , 2009; Tung et al , 2008; Xin and Pearce, 1996) and jointly dominate firm behavior. Extant research has mostly focused on the substitution effect of formal and informal institutions and the moderating effects of formal institutions (Li and Zhang, 2007; Kafouros et al , 2021) but has not empirically examined the effects of their interactions on IOCs. This study argues that the interplay of marketization and guanxi culture could influence the occurrence of IOCs.…”

Section: Discussionmentioning

confidence: 99%

Direct and interaction effects of formal and informal institutions on interorganizational conflicts: evidence from Chinese firms

Wang

Liu

2022

IJCMA

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Purpose This study aims to examine the effects of formal and informal institutional factors (i.e. marketization and guanxi culture) on interorganizational conflicts (IOCs) and their interaction effects. Design/methodology/approach Drawing on IOC literature and an institution-based view, the authors use a sample of 12,022 Chinese firms from the World Bank’s Investment Climate Survey. A zero-inflated negative binomial regression was used to analyze the data. Findings The results suggest that guanxi culture has U-shaped effects, but marketization does not negatively affect IOCs. Furthermore, a low level of marketization weakens the U-shaped effect of guanxi culture on IOCs. A moderate level of guanxi culture can enable marketization to reduce IOCs. Practical implications This study provides a better understanding of the management of IOCs. Managers should fully understand the differential effects of the institutional environment in different regions and their interactions by adopting different response strategies. Originality/value This study enriches the literature on IOCs’ antecedents and contextual factors by examining the institutions’ direct and interaction effects on IOCs.

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“…Menurut Kafouros et al (2022), rasio yang dapat menggambarkan kemampuan perusahaan dalam memberikan keuntungan adalah rasio profitabilitas. Rasio ini juga menggambarkan apakah manajemen suatu perusahaan sudah efektif.…”

Section: Pendahuluanunclassified

Apakah Profitabilitas Memoderasi Pengaruh Penghindaran Pajak Terhadap Nilai Perusahaan? Bukti Empiris dari Indonesia

Rahman

Astuti

2022

E-Jurnal Akuntansi

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The purpose of the study was to examine the effect of tax avoidance and audit quality on firm value with profitability as a moderating variable. Measurement of tax avoidance is carried out using the Effective Tax Rate (ETR). Meanwhile, audit quality uses a dummy indicator, namely the classification of the Big Four KAP auditors and KAP auditors Other than the Big Four and profitability is measured using Return on Assets (ROA). This study involved a sample of 54 companies that were registered on IDX in 2015-2019. The analysis technique used is Moderated Regression Analysis (MRA). The results showed that tax avoidance had no effect on firm value, although audit quality had a positive effect on firm value. The moderating variable for profitability affects the relationship between tax avoidance and firm value, but the moderating variable for profitability does not affect the relationship between audit quality and firm value. Keywords: Tax Avoidance; Profitability; Firm Value; Audit Quality.

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How do formal and informal institutions influence firm profitability in emerging countries?

Cited by 26 publications

References 135 publications

Innovation and international business: A systematic literature review

Innovation and international business: A systematic literature review

Direct and interaction effects of formal and informal institutions on interorganizational conflicts: evidence from Chinese firms

Apakah Profitabilitas Memoderasi Pengaruh Penghindaran Pajak Terhadap Nilai Perusahaan? Bukti Empiris dari Indonesia

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