The Impact of Credit Ratings on Financial Performance (ROA) and Value Creation (Tobin’s Q)

This study employs a bibliometric and systematic approach to examine the impact of credit ratings as a measure of financial performance for companies listed in the S&P 500 index.The study identified a knowledge gap as only two researches were found,one suggesting and another using credit ratings to measure financial performance.Most researches use leverage,profitability,liquidity,and Share Return measures to explain financial performance.The empirical analysis uses the data of 2,398 observations of 240 companies rated by S&P Global Ratings for the period 2009-2013,applying a Generalized Method of Moments(GMM)methodology to estimate the models due to its ability to address potential endogeneity issues.The study considers Return on Assets(ROA)and Tobin’s Q as dependent variables.It incorporates credit ratings(CRWLTA)along with variables such as Total Debt to Total Assets(TDTA),Total Shareholder Return(TSR),EBITDA Interest coverage(EBITDAICOV),Quick Ratio(QR),Altman’s Z-Score(AZS),as well as macroeconomic factors like Gross Domestic Product(GDP)growth,inflation(Consumer Price Index-CPI),and the Federal Reserve Interest Rate(FDRI)as independent variables.The study argues that credit ratings,which incorporate historical data and confidential information about companies’strategies,provide reliable forward-looking creditworthiness assessments to the market.It is supported by specialized rating agencies that employ their methodologies.However,the findings suggested that CRWLTA,had a negative relationship with Q Tobin,although it was not statistically significant,and a negative relationship with ROA that was on the verge of significance.

Could more innovation output bring better financial performance?The role of financial constraints

Innovation scholars highlight the economic benefits to firms,while research findings on the relationship between innovation output and economic returns remain mixed.In this study,we develop the profiting from innovation(PFI)framework and address the crucial role of financial constraints in the relationship between innovation output and financial performance.We argue that the liability of newness differentiates firms’financial performance during the commercialization of innovation,leading to a U-shaped relationship between firms’innovation output and financial performance.We further document the moderating impact of individual financial constraints(IFC)and market-based financial constraints(MFC)on this curvilinear relationship.Empirical tests based on the 142,972 firm-year observations of the multi-source dataset of Chinese manufacturing firms from 1999–2009 support our hypotheses.The additional analysis shows that non-state-owned enterprises and small and medium enterprises benefit more from the synergistic effect of reductions of IFC and MFC than state-owned enterprises and large firms.Our study enriches the literature of the PFI framework by uncovering the mechanism between innovation output and economic returns where financial constraints play an essential role.To the best of our knowledge,we are among the first to investigate the processes and mechanisms between innovation output and financial performance,generating novel insights for business practitioners and policymakers.

Impact of CEO attributes on corporate reputation,financial performance,and corporate sustainable growth:evidence from India

This article investigates the impact of CEO attributes on corporate reputation,financial performance,and corporate sustainable growth in India.Using static panel data methodology for a sample of NSE listed leading 138 non-financial companies over the time-frame 2011 to 2018,we find that CEO remuneration and tenure maintains significant positive associations with corporate reputation,while duality and CEO busyness are found to be associated with corporate reputation negatively.The results also show that female CEOs and CEO remuneration are associated with corporate financial performance positively,whereas CEO busyness,as expected,holds a significant negative relationship with corporate financial performance.Moreover,the results demonstrate that CEO age is associated with corporate sustainable growth negatively,while tenure appears to have a significant and positive association with corporate sustainable growth.The results are robust to various tests and suggest that in the Indian context,demographic and job-specific attributes of CEOs exert significant influence on corpo-rate reputation,financial performance,and corporate sustainable growth.The empirical findings would provide a basis for the shareholders and companies to identify areas of consideration when appointing CEOs and determining their roles and responsibilities.

Determinants of Commercial Bank Financial Performance:Empirical Evidence From Ethiopia

The study examines factors that determine the financial performance of commercial banks in Ethiopia by using time series data over the period 2004-2019 on the sample of seven banks using secondary data.Moreover,the autoregressive distributed lag model was used.Under this study,both internal and external factors were included as the determinants of bank performance which was measured by loan-to-deposit ratio.The internal factors used in this study include capital adequacy ratio,non-performing loan and loan growth while the external factors are real GDP growth and inflation.Based on the results,specific variables except non-performing loan capital adequacy and loan growth affect banks performance significantly in the long run.In the short run,in addition to those two variables,non-performing loan also affects bank performance.Real GDP growth has negative significant effect on the banks performance in both long and short run.Inflation has insignificant effects on bank performances in both long and short run.

Research on Financial Performance Evaluation of Listed Agricultural Companies in China--Based on VRS-DEA and Malmquist Index

On the basis of sorting the development of the theory of company performance evaluation,this study uses the VRS-DEA model and Malmquist index to evaluate the financial performance of 12 listed agricultural companies in China.Firstly,the selected sample data was standardized,and then the VRS-DEA model was used to analyze the financial performance indicators of the sample companies in 2019.Secondly,the financial performance indicators of the sample companies from 2015 to 2019 were used to longitudinally analyze the company's total factor productivity through the Malmquist index.Finally,based on the analysis of the financial performance evaluation results of sample companies,some suggestions for improving the financial performance of listed agricultural companies in China are put forward.

Impact of Punitive Supervision on Corporate Financial Performance

Financial performance is an indicator to measure the strength of a company’s business operation capability,which is of great concern to enterprise managers,external investors,and government regulators.Based on the data of Chinese listed companies from 2012 to 2016,this paper included government administrative penalties regulation into the study of factors influencing corporate financial performance and conducted an empirical analysis.The research shows that punitive supervision has a significant negative impact on corporate financial performance;rectifying the effect on financial performance would increase the operating cost.Simultaneously,the degree of punitive supervision will also affect corporate financial performance,with the financial performance of listed companies subjected to severe punitive supervision being poorer.

Big Data Analytics for Improving Financial Performance and Sustainability

In this study,the key drivers of sustainability commitment,green supply chain management,big data integration and green human resource practice are explored,and the impact of these sustainable capabilities on the environmental and financial performance of banks is also elaborated.In addition,the influence of green management practices on integrating big data technology into operations is presented.As for the concept of dynamic ability,it has been used to recommend and empirically test conceptual models.Data were collected through a self-administrated survey questionnaire on 317 people working in 37 banks in six Asian countries.Research suggests that big data analytics strategies have an impact on internal processes and on the stability and financial performance of banks.Besides,it is indicated that banks are committed to proper data monitoring of their customers to complete operational efficiency and sustainability goals.Furthermore,our result proved that banks practicing Green Innovation strategies experience better environmental and economic performance because their employees are already trained in Green HR.Finally,from our study,it was found that internal and external green supply chain management practices have a positive effect on the environmental and financial performance of banks,thus ensuring that the bank of Association of Southeast Asian Nations(ASEAN)mitigates the environmental impact through its operations and ultimately experiences an increase in financial performance.

Innovation and financial performance of companies doing business in Brazil

In this paper,we analyze the relationships among innovation efforts,the impacts of these innovations,and the financial performance of Brazilian companies.We hypothesize that innovation efforts do not directly translate into financial performance.Due to the inherent uncertainty of innovative projects,such efforts must first lead to effective innovation results or impacts before they are capable of contributing to a company's financial performance.Using the Brazilian Institute of Geography and Statistics'(IBGE)comprehensive official databases on innovation and performance,we study 5,025 firms using exploratory factor analysis and structural equation modeling.The results suggest that efforts in innovation possibly generate impacts;however,these impacts do not necessarily imply better financial performance.Therefore,although firms'efforts may lead to new products,they will not contribute to financial gains in the short term,reflecting the risky and costly nature of innovation.The study aims to contribute to the discussion on firm-level impacts of innovation from the context of a large developing country,since empirical results of the literature are mixed.

Financial Performance Remained Stable in 2007

NUMBERS OF THE WEEK"1】5"Total yields from insurance premium investment in 2007 reached 279.17 billion yuan($38.77 billion),exceeding the aggregate amount of the previous five years,according to Wu Dingfu, Chairman of China Insurance Regulatory Commission.Wu said it was the best achievement ever for the insurance industry,and the 2007 premium totaled 703.58 billion yuan($97.72 billion), increasing 25 percent year on year. Beijing’s Vice Mayor Chen Gang said(?) total cost of Beijing Olympic venues would amount to 13 billion yuan($1.81(?)

The Impact of the External Audit Quality on the Financial Performance of Conventional and Islamic Banks

The continuing emergence of sudden financial crises and the bankruptcy of Big banks audited by the‘Big Four’auditors confirms that the external audit quality(EAQ)always remains insufficient compared to the desired quality.The quality weakness is due either to the bad audit company choice,although their sizes,or to the disrespect of the good audit rules.Because there is a lack of comparative studies in the framework of conventional and Islamic banks,this paper aims to compare the impact of EAQ on the financial performance(FP)of 180 conventional banks and 180 Islamic banks.FP and EAQ variables are collected from 56 countries over the period(2010-2020).To overcome the mystery of the best EAQ selection based on its impact on FP,this paper relied on the GLS estimator.Consequently,this paper concluded that the EAQ affected the conventional banks’FP,but it improved that of Islamic banks with a moderate impact.

The impact of ESG on financial performance:a revisit with a regression discontinuity approach

This study revisits the question of“whether firms are doing well by doing good?”.We examine shareholders-sponsored corporate socially responsible(CSR)proposals related to Environmental,Social,and Governance(ESG)that are voted to pass or fail by a small margin.The adoption of those“close call”proposals is regarded as equivalent to a random assignment of CSR policies and,therefore,provides a quasi-experimental setting to capture the causal influence of CSR on firm performance.We apply the regression discontinuity design(RDD)and find that CSR proposals’passage leads to a significant positive abnormal return on the voting day.The results are robust with both parametric and nonparametric approaches of RDD and different polynomial orders.However,we fail to identify a significant change in financial performance in the long-term.One possible reason is that passing a CSR proposal could be symbolic,rather than substantial.

Comparative Financial Analysis of Conventional and Islamic Banks of Developing Countries

This study investigated the financial performance of Bangladesh’s State-Owned Commercial Banks,Islami Shariah Based Private commercial Banks and Conventional Private Commercial Banks over 12 years from 2006 to 2017.The objective of this study is to find out the financial performance of a bank based on CAMEL indicators.The finding of this study is that Islami Shariah Based Private commercial Banks and Conventional Private Commercial Banks has a good position than State-Owned Commercial Banks.Specific,Pubali Bank Limited,Standard Bank Limited,Prime Bank Limited,City Bank Limited and Al-Arafah Islami Bank Limited are in the best position in Bangladesh under this study.We also found that the performance of State-Owned Commercial Banks is not good.This study gives a policy implementation according to results.1.State-Owned Commercial Banks should restructure the infrastructure.2.It needs more emphasis on efficiency and effectiveness to control the cost and loan investment.3.It will be required to pay more in insurance premiums.4.It should be born in mine,for higher rating banks.We suggest to a higher number of rating banks that it’s hinders a bank’s ability to expand by investing,consolidating,or adding more branches.We also suggest to all lower rating banks.The institutions with a poor rating will be required to pay more in insurance premiums.

Effect of Issuing Convertible Bonds from the Perspective of Ownership Structure:Evidence from Listed Companies in Shanghai and Shenzhen

Due to the rapid expansion of enterprise scale,traditional financing methods can no longer meet the needs of enterprises.As a financing method with both equity and debt,convertible bonds,with its flexibility,is favored by enterprises.Especially in 2017,China’s supervision on the financing method of private placement of shares has become stricter,and some companies have chosen convertible bonds for financing.This paper takes the ownership structure as the starting point and the listed companies in Shanghai and Shenzhen as the research subjects,as well as uses regression analysis to determine the relationship between convertible bonds,ownership structure,and enterprise performance.It is found that convertible bonds reduce the performance of enterprises,while ownership concentration strengthens the negative relationship.

Attribute of Big Data Analytics Quality Affecting Business Performance

With an accelerating increase of business benefits produced from big data analytics (if used appropriately and intelligently by businesses in the private and public sectors), this study focused on empirically identifying the big data analytics (BDA) attributes. These attributes were classified into four groups (i.e., value innovation, social impact, precision, and completeness of BDA quality) and were found to influence the decision-making performance and business performance outcomes. A structural equation modeling analysis using 382 responses from a BDA related to practitioners indicated that the attributes of representativeness, predictability, interpretability, and innovativeness as related to value innovation greatly enhanced the decision-making confidence and effectiveness of decision makers who make decisions using big data. In addition, individuality, collectivity, and willfulness, which are related to social impact, also greatly improved the decision-making confidence and effectiveness of the same decision makers. This shows that the value innovation and social impact, which have received relatively less attention in previous studies, are the crucial attributes for BDA quality as they influence the decision-making performance. Comprehensiveness, factuality, and realism, which are linked to completeness, also have similar results. Furthermore, the higher the decision-making confidence of the decision makers who used big data was, the higher the financial performance of their companies. In addition, high decision-making confidence using big data was found to improve the nonfinancial performance metrics such as customer satisfaction and quality levels as well as product development capabilities. High decision-making effectiveness with big data was also shown to improve the nonfinancial performance metrics.

Time Lag Effect of Supply Chain Management on Firm Performance

The objective of this paper is to identify time lag effect in the relationship between supply chain management and financial performance.We hypothesize that firms with higher supply chain management capability are associated with higher financial performance and the impact would last longer.In addition,we introduce two contextual variables,ownership and market orientation,to detect the moderating effect of ownership structure and organizational culture,respectively.We use firm-level empirical data from 1,131 public Chinese manufacturing firms for the 2010–2019 period to investigate the effect and the result shows that there is a two-year time lag effect in the relationship,which means the positive impact of current supply chain management would last for three years.Furthermore,we find evidence that supply chain management in non-state-owned firms is more efficient and its positive financial impact would last longer than that in state-owned enterprises.Finally,we indicate that market-orientation can’t moderate the relationship between supply chain management and financial performance.

Structural design and performance analysis of China’s Local Government Financing Vehicles

In this paper,we investigate the reasons for the establishment and operation models of China’s Local Government Financing Vehicles(LGFVs).We also outline the current literature on the structural arrangement and the developments of LGFVs.Moreover,we employ the empirical analysis to examine the driv-ing factors of the financial performance of LGFVs.Using 1,042 LGFVs that issued debt securities during the period 2011–2016,we find that the financial performance of LGFVs is positively asso-ciated with local tax revenues,local education levels,local saving deposits,and firm size but negatively associated with local gov-ernment spending and firm leverage ratios.Based on our empir-ical findings,we finally propose policy recommendations for the establishment of relevant investment and financing platforms.