Operating characteristics of high performance companies: Strategic direction for management

Needles, Belverd E.; Powers, Marian; Frigo, Mark L.; Shigaev, Anton

doi:10.1108/s1479-351220140000028008

Cited by 14 publications

(4 citation statements)

References 14 publications

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“…Business crises put to the test the application of the RBV theory, according to which the company's tangible and intangible resources determine its survival in the market and superior performance (Ahmad et al , 2022). In periods of business crisis the management analyzes the company's significant characteristics and resources and identifies specific risk areas that it must manage (Needles et al , 2014). Also, the same research indicates that profitability indicators quickly suffer in crisis periods.…”

Section: Introductionmentioning

confidence: 99%

Intellectual capital before and during COVID-19 in the hotel industry: the moderating role of tangible assets

Ognjanović

Dženopoljac²,

Cavagnetto³

2023

JHTI

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PurposeThe study aims to assess the relative impact of intellectual capital (IC) as opposed to tangible assets on profitability and employee performance in hotels in Serbia before and during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThe current study was undertaken in 2019, the year before COVID-19, and 2020, the year of COVID-19's major impact. This study utilizes the Value-Added Intellectual Coefficient (VAIC) as a measure of efficient use of IC. Financial data were collected from 163 hotels in Serbia. Structural equation modeling (SEM) was used to test the proposed hypotheses.FindingsThe results revealed that IC was a relevant factor for both profitability and employee performance before and during the COVID-19. However, the study reveals a negative moderating effect of tangible capital efficiency (TCE), meaning that with the increase of TCE, the relationship between IC and performance becomes weaker.Research limitations/implicationsThe main limitation of the study is rooted in VAIC's ability to fully incorporate all elements of IC, leaving the relational capital out.Practical implicationsTo achieve better performance, hotel management should direct resources more towards IC and less toward tangible assets, which implies doing more with less.Originality/valueThe results indicate the importance of IC in a period of crisis for the industry and economy that are not recognized as knowledge intensive. To the best of the authors' knowledge, no other study has attempted to assess the relative contribution of tangible assets and IC before and during the COVID-19 pandemic.

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Section: Introductionmentioning

confidence: 99%

Intellectual capital before and during COVID-19 in the hotel industry: the moderating role of tangible assets

Ognjanović

Dženopoljac²,

Cavagnetto³

2023

JHTI

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“…It could be used for several purposes, such as the prediction of failure or, more generally, the observation of the health status of the firms (Beaver, 1966) and in different contexts, such as the AFS (Koutsou and Sergaki, 2019). The financial ratio analysis, in this study, is used to empirically investigate a sample of Italian companies over a 7-year period (2013–2019), realising a longitudinal study (Needles et al. , 2010).…”

Section: Methodsmentioning

confidence: 99%

Financing innovation in agri-food industries: an analysis of the Italian micro, small and medium enterprises

Paoloni

Tutino

Paoloni

et al. 2023

BFJ

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PurposeThis work aims to investigate the current financial structure of Italian agri-food micro, small and medium enterprises (MSMEs) to understand how MSMEs face innovation challenges, which are also required to support sustainable development.Design/methodology/approachTo reach the goal, an empirical longitudinal analysis is performed on a sample of Italian agri-food firms. In detail, to highlight the changes in the use of financial sources between 2013 and 2019, a descriptive ratio analysis is carried out on the data extracted by the AIDA database. In addition, statistical analyses were performed, including t-tests and U Mann–Whitney. Finally, a fixed-effects model is created to analyse the panel data. To ensure homogeneity, the sub-sectors of production and transformation are separately considered.FindingsThe financial structure analysis shows an increase in the equity percentage in the funding sources, attributable to an attempt to compensate for the reduction of banks' funding. However, even though this change has not compromised firms' profitability, the undercapitalisation of companies is still present. Therefore, more equity investments are required to support the innovation process.Originality/valueThe value of the present research is to highlight the choice of using new alternative financing sources instead of traditional banks' credit to implement sustainable and innovative development Italian agri-food sector (AFS). This choice is forced by reducing finance from banks and other financial institutions because of the credit crunch. This issue is even more relevant, considering that MSMEs have structural financial problems but have to fulfil the mission of pursuing innovation in the same way as large companies. Therefore, this paper expands the literature on agri-food, delving into an issue typical of MSMEs and combining agri-food with the need for innovation.

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“…Rewards are a powerful tool for board members to improve the quality of disclosure in companies (Abou-Moghli et al , 2013; Al-Bourini et al , 2013). Despite the power of this management tool, it is a double-edged sword, and if managers prefer opinions over facts, the organization’s motivation and performance may decrease (Needles et al , 2008). Moreover, several studies present evidence that highly incentivized CEOs are engaged in higher levels of earnings manipulation (e.g.…”

Section: Research Backgroundmentioning

confidence: 99%

“…The manipulation then gives shareholders and investors the wrong idea about how well the company is doing or how much it is worth or grants managers more commissions (Sun, 2014). In practice, global financial scandals and their tragic consequences are clear, such as the bankruptcy of companies like Enron and WorldCom at the beginning of the 2000s, the Dell Case in 2007, the Chile companies in 2011 and the Time Warner Case in 2010 (Needles et al , 2008). The possibility and existence of such manipulations of earnings in financial statements, as well as the consequences of such actions, cause great losses to society and diminish the public’s trust in accounting procedures.…”

Section: Introductionmentioning

confidence: 99%

Revisiting corporate governance mechanisms and real earnings management activities in emerging economies

Mansoori,

Al-Abdallah

2024

ARJ

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Purpose This study aims to investigate the effects of main corporate governance (CG) mechanisms used in Iran on the relationship between managers’ rewards and real earnings management activities. Design/methodology/approach Panel data analysis is performed on 101 companies listed on the Tehran Stock Exchange during the past seven years (from 2015 to 2021). Findings The percentage of non-executive members of the company’s board of directors and the percentage of acquisition of the company’s largest shareholders have a negative significant effect on the relationship between abnormal operating cash flows and managers’ remuneration. Moreover, the separation of the CEO from the chairman and vice chairman of the board has also a negative significant effect on this relationship. However, concentration of ownership does not have a significant effect on the relationship between abnormal operating cash flows and managers’ rewards. Practical implications The study provides policymakers and governing bodies with a better understanding of the effects of the percentage of non-executive board members, concentration of ownership, percentage of major shareholders and duality of the role of CEO (or president) from the chairman and vice chairman of the board on the relationship between managers’ rewards and earnings management. Originality/value Previous studies focus mainly on accrual-based earnings management. This study investigates real earnings management and provides empirical evidence on the most effective and significant CG dimensions in Iran. It embraces the fact that CG may have the same principal concept in different markets, but the mechanisms may vary significantly, thus opening the door for more comparative future research.

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Operating characteristics of high performance companies: Strategic direction for management

Cited by 14 publications

References 14 publications

Intellectual capital before and during COVID-19 in the hotel industry: the moderating role of tangible assets

Intellectual capital before and during COVID-19 in the hotel industry: the moderating role of tangible assets

Financing innovation in agri-food industries: an analysis of the Italian micro, small and medium enterprises

Revisiting corporate governance mechanisms and real earnings management activities in emerging economies

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