The Managerial Control Types of Conglomerates and Firm Performance

Chiang, Hsiang-Tsai; Lin, Mei-Chih

doi:10.5430/ijfr.v2n2p2

Cited by 3 publications

(4 citation statements)

References 48 publications

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“…ROE serves as a metric for evaluating the efficiency of management in generating gains and growth from shareholders' investments. Scholars such as Bari et al (2021) and Chiang & Lin (2011) commonly employ ROE as an indicator of firm performance.…”

Section: The Explained Variablesmentioning

confidence: 99%

Analyzing the Impact of Employee Perks on Organizational Turnover in the Pharmaceutical Sector of Bangladesh

Jahan,

Jabin

2024

IJEBMR

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This study explores the impact of employee benefits on organizational earnings within the pharmaceutical sector in Bangladesh, an emerging economy. To conduct this investigation, researchers gathered pertinent data from the annual reports of 26 pharmaceutical companies listed on the Dhaka Stock Exchange (DSE), spanning the period 2017–2021. The primary variable under scrutiny is the employee benefits ratio (EBR), calculated by dividing the total benefits, excluding regular salaries and wages, by the total revenue. Additionally, the study examines the association between the salaries and wages ratio (SWR) and firm turnover. Focusing on these two key variables, the research also incorporates various control factors— namely, leverage, firm age, tangibility, liquidity, firm size, growth, and non-debt tax shield—to enhance the model's robustness. Organizational turnover are measured using return on assets (ROA) and return on equity (ROE) as the dependent variables. The panel-corrected standard error regression analysis reveals that the employee benefits ratio (EBR) and salaries and wages ratio (SWR) exert a significant positive influence on ROA. This implies that increased salaries and additional benefits serve as motivational factors for employees, fostering job satisfaction and enhancing performance. However, these variables do not demonstrate a significant association with ROE. Furthermore, factors such as firm age, leverage, tangibility, liquidity, and firm size exhibit a notable impact on firm performance. These findings collectively contribute to a comprehensive understanding of the relationship between employee benefits, organizational turnover and will help organizations to design their incentive programs effectively.

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Section: The Explained Variablesmentioning

confidence: 99%

Analyzing the Impact of Employee Perks on Organizational Turnover in the Pharmaceutical Sector of Bangladesh

Jahan,

Jabin

2024

IJEBMR

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“…Most strategic management literature measuring firm performance, as a dependent variable, suffered from multiple problems concerning the employment of various indicators of firm performance that lacked either consensus or dimensionality. Financial or accounting-based ratios as measures for the firm performance were extensively utilized with concentrated employment of profitability measures, such as: profit margin (Jiang and Peng, 2010;Bauwhede, 2009;Premuroso and Bhattacharya, 2007), return on sales (Bøhren and Strøm, 2010;Filatotchev, Isachenkova and Mickiewicz, 2007), earnings per share (Yue, Lan and Jiang, Luan, 2008;Filatotchev, Lien and Piesse, 2005), return on equity (Ibrahim and AbdulSamad, 2011;Chaghadari, 2011;Chamberlain, 2010;Yue, Lan and Jiang, 2008;Luan and Tang, 2007), and return on assets (Chiang and Lin, 2011;Kim and Yoon, 2007;Xu, Zhu and Lin, 2005). Furthermore, more advanced SMAPs, such as BSC, were developed to help management in evaluating the firm performance from multi-focal aspects; financial and non-financial, indicators of firm performance measured more than the financial aspect of business firms.…”

Section: Firm Performancementioning

confidence: 99%

Contextual Factors as Determinants of Management Accounting Practices Adoption and its Impact on the Performance of Egyptian Firms

Nowar

2023

The Academic Journal of Contemporary Commercial Research

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This research aimed to analyze the association between contextual factors existing within the business firms operating in Egypt. They represent determinants of the adoption level of management accounting practices (MAPs). In addition, examining the effect of MAPs adoption on firm performance. A study was conducted on a sample of firms operating in divergent industry sectors in Egypt and was carried out in mid-2022. Results of multiple regression analysis revealed that only firm competitiveness as a contextual variable can be considered as a determinant of MAPs adoption. However, contextual factors such as firm size and firm strategy have a significant negative relationship with MAPs adoption level. Furthermore, the type of activity has no impact on MAPs adoption. Moreover, MAPs adoption level has an impact on sampled firms' performance. The limits of the research were mostly related to the analyzed MAPs since the analysis was confined to only some of the commonly used traditional/strategic MAPs in practice. This is in addition to the fact that all firms of the sample were representative of profit-making business firms, which indicates that the results are to be only generalizable to that category of business entities. The research contributes to the literature addressing MAPs' recent adoption level in the Egyptian firms from two aspects. First, it identifies the recent contextual factors to be considered as determinants of the implementation level of MAPs whether traditional MAPs (TMAPs) or contemporary/strategic MAPs (CMAPs/SMAPs). Second, it explores the effect of implementing MAPs on firm performance measured by both financial and non-financial indicators.

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“…The theory suggests that stewards are satisfied and motivated when organizational success is attained. Stewardship theory recognizes the importance of structures that empower the steward and offers maximum autonomy built on trust (Chiang & Lin, 2011). It stresses on the position of executives to act more autonomously so that the shareholders' returns are maximized.…”

Section: Stewardship Theorymentioning

confidence: 99%

“…The study concluded that having more or less number of independent directors in the board had no bearing on the performance of Chinese listed firms. However, in a study conducted in Taiwan focusing on the link between board composition and firm performance, Chiang and Lin (2011) found that listed companies in Taiwan suffered from the divergence between stock-control rights and earnings-distribution rights, and the divergence of rights was negatively associated with firm performance. The study also found that CEO internalization was significantly positively associated with firm performance which was consistent with the viewpoint of agency theory that the controlling interests of CEO may induce them to enhance company performance.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Effect of Board Composition on Financial Performance of Listed Firms in Nairobi Securities Exchange

CHEROTICH,

OBWOGI (Ph.D)

2018

strategicjournals.com

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Board composition is a critical element of corporate governance with the board mandated with supervisory and advisorial roles on a company's management. This has created the belief that boards of directors can influence a firm's strategic decision making and subsequently its performance. However, existing empirical studies provide conflicting results regarding the effect of board composition on firm financial performance. This called for a further analysis to determine the effect of board composition on financial performance of listed firms in Nairobi Securities Exchange. Using secondary data Collection over a period of 8 years (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017) the study adopted a descriptive and quantitative research design. The target population was the 55 companies listed at the Nairobi Securities Exchange as of 2010. The study findings showed that an insignificant negative relationship between board size and the financial performance of the listed firms in Kenya; a significant negative relationship between CEO duality and the financial performance of the listed firms in Kenya; a significant positive relationship between board gender composition and the financial performance of the listed firms in Kenya and a significant positive relationship between board independence and the financial performance of the listed firms in Kenya. The study concluded that that CEO duality, board gender composition and board independence as board composition components had a signficant effect on the financial performance. The study also concluded that board size as a board composition component did not signficantly affect the financial performance. The study recommended that the listed firms should adopt a leadership position where the CEO and the Board Chair positions are distinct and hence held by two different persons instead of a situation where the firm's CEO is also the board chair. In addition, the listed firms in Kenya should increase the proportion of female directors as well as the proportion of non-executive directors sitting in their boards.

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The Managerial Control Types of Conglomerates and Firm Performance

Cited by 3 publications

References 48 publications

Analyzing the Impact of Employee Perks on Organizational Turnover in the Pharmaceutical Sector of Bangladesh

Analyzing the Impact of Employee Perks on Organizational Turnover in the Pharmaceutical Sector of Bangladesh

Contextual Factors as Determinants of Management Accounting Practices Adoption and its Impact on the Performance of Egyptian Firms

Effect of Board Composition on Financial Performance of Listed Firms in Nairobi Securities Exchange

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