Browsing by Subject "firm performance"

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  • Keinonen, Henrik Markus Alfred (2021)
    This paper examines the relationship between ownership concentration and firm performance within the Nordic corporate governance model. Using data on Finnish publicly listed companies (PLCs) during a period of economic growth and stability, we find that the ownership share of the largest owner is negatively related to Tobin’s Q . We posit that certain blockholders may exchange their active monitoring and control function of the management for the private benefits of control, which is an inherent risk of the Nordic Corporate Governance (NCG) model. We find that state ownership is negatively associated with Tobin’s Q , suggesting that government owners might promote politically desirable goals rather than create long-term value for all shareholders. It is plausible that certain domestic blockholders render PLCs with a concentrated ownership structure less a!ractive to foreign investors.
  • Nandelstadh von, Alexander; Rosenberg, Matts (Swedish School of Economics and Business Administration, 2003)
    This paper examines the association between corporate governance attributes and firm performance of Finnish firms during 1990 – 2000. The empirical results suggest that corporate governance matters for firm performance. First, univariate test results indicate that firms characterized by a high (efficient) level of corporate governance have delivered greater stock returns, are higher valued based on the measure of Tobin’s Q, and exhibit higher ratios of cash flow to assets, on average, in comparison to their counterparts characterized by a low (inefficient) level of corporate governance. Second, controlling for a number of well-known determinants of stock returns, we find evidence that firms categorized by inefficient corporate governance have delivered inferior returns to shareholders during the investigation period. Finally, after controlling for several common determinants of firm value, we find that firms characterized by efficient corporate governance have been valued higher during the investigation period, measured by Tobin’s Q.
  • Nguyen, Hang Thanh; Grant, David; Bovis, Christopher; Nguyen, Thuy Thi Le; Mac, Yen Thi Hai (2022-02-09)
    This paper investigates how customs officials perceive the implementation of e-customs will influence business performance in Vietnam, a developing country with a lower technological environment. A survey of customs officials was conducted, and data were analyzed by structural equation modelling. The outcomes discover two significant enablers related to relative advantages and the new exploring factor Culture while Finance & Human Resources and Legislation as the inhibitors. Additionally, the study also emphasized that e-customs implementation had a positive influence on firm performance in Vietnam. In addition, the study provides different viewpoints of cultural dimensions in case study of applying e-customs in Vietnam in comparison with previous studies. Culture with attributions related to uncertain acceptance and individualism encourage innovation in other literature reviews, however, the study indicates uncertainty avoidance and collectivism as Vietnam also promotes e-customs deployment. Vietnam with high power distance and short-term orientation became old themes. This emerging country switched to low distance and long-term orientation in terms of e-customs innovation. In contrast to previous studies related to constraints from technology in emerging economies, technological factors are not an obstacle for Vietnam. Furthermore, previous literature reviews inflected legislation and regulations of government as one of the limitations that should be examined in further and this research carried-out this investigation in one of emerging economies. The results of the paper support policy makers who can have essential solutions to enhance e-customs implementation as well as enterprises’ managers set-up strategy to adapt with the modernization environment.
  • Keinonen, Henrik (Hanken School of Economics, 2021-12-08)
    The aim of this research is to study agency problems in entrepreneurial ventures and publicly listed companies (PLCs). Agency problems originate from asymmetric information, and can be detrimental to a firm’s investment attractiveness, high-growth ventures’ financial markets, and listed companies’ valuation. The overarching research question is what are the agency problems among entrepreneurial ventures and publicly listed companies, are these problems similar in nature, and can they be prevented or cured? The question is addressed in three different settings. Paper I reflects on business angel networks’ (BANs) value to startup entrepreneurs and their societal context, and provides statistics on BANs in Europe and the US. Paper II empirically investigates the impact of Israeli scaleup entrepreneurs’ criteria when selecting a Venture Capital (VC) firm, inverting the typical research order. Paper III contributes by providing answers to why certain blockholders in Finnish PLCs do not take responsibility for the company’s long-run development, but instead maximise their private utility. The authors employ descriptive statistics and quantitative research: interview data, an ordered logit regression model, longitudinal panel data with cross-sectional and time-series observations, and ordinary least squares regression. Agency problems in startups stem from the transactional process between entrepreneur and angel investor. In this setting, the entrepreneur might provide untruthful information to the investor or abuse the funding. BAN service quality may, however, reduce information asymmetries in entrepreneurial venture quality, and build trust between entrepreneurs and investors. BANs in more mature business angel markets tend to offer better quality services than those in less mature markets. Agency problems in scaleups manifest between VC firms and entrepreneurs, where VC managers may push entrepreneurs to take excessive risks that endanger their personal wealth. Empirically, entrepreneurial experience has a negative relationship with the importance entrepreneurs attach to valuation, which is moderated by the importance they attach to VC networks and reputation. Honest signalling of the parties’ qualities may reduce agency problems in the startup and scaleup phases. Large state ownership and company value are negatively associated, suggesting that government owners may promote political goals rather than long-term value for all shareholders. Liquidating state ownership in non-strategic companies and re-investing the assets through ETF funds would constitute a Pareto improvement. Ultimately, this study shows that agency problems are contextual and differ on the firm’s stage of development, namely startup, scaleup or PLC. But agency problems can be alleviated, which is important to the aggregate economy.
  • Maury, Benjamin (2021-09-27)
    This paper investigates the relations between CSR, business strategies, and future firm performance. The focus is on how strategies such as growth, prospector, and defender strategies affect the CSR-performance relation. Prospector strategies are associated with high R&D and advertising expenses but low capital intensity, while a general growth strategy is measured by revenue growth. Using a sample of listed companies from 23 developed countries by MSCI, CSR improvements are shown to be positively related to future profitability in prospector and growth firms. Both growth and prospector strategies improve the performance of CSR activities.