This research examines the influence of business strategy and intellectual capital on firm performance and bankruptcy risk of Oman's non-financial sector companies.,The data comprises 380 firm-year observations collected from 2015 to 2019 for the non-financial sector companies listed on the Muscat Securities Market. This study measures business strategy using the Miles and Snow typologies and Porter's strategies as alternative measures. The study uses the Granger-causality test to measure the bi-directional causality between independent and dependent variables. The authors use alternative measurements of business strategy and 2SLS/IV estimation to validate the OLS results.,According to the Miles and Snow typologies, most of Oman's non-financial firms were analyzers. The empirical results show a negative relationship between business strategy and return on equity (ROE), suggesting defender-type strategy leads to an increase in firm performance. The OLS results show no influence of A-VAIC on firm performance and Altman-Z score. The structural capital efficiency is positively associated with ROA, and Altman Z score consistent with the hypothesized relationship. The Granger causality test shows no inference of causality between any independent and dependent variables except for Z score and CEE.,The business strategy results from the firm performance and bankruptcy risk models are valuable to the researchers from an emerging market and non-financial companies' perspective. Oman's diversification strategy of its economic activities through non-financial sector companies receives an impetus through the findings of this study. As this study is limited to Oman's non-financial sector companies, future research on business strategy impact can be extended to the financial sector, other GCC, and emerging countries.,The findings of this study contribute to the sparse literature on business strategy in an emerging market like Oman. This study enriches the knowledge of business strategy typologies proposed by Miles and Snow, and Porter. It also contributes to the extant literature on firm performance and bankruptcy risk.

Business strategy, intellectual capital, firm performance, and bankruptcy risk: evidence from Oman's non-financial sector companies

Trade credit and global value chain: Evidence from cross-country firm-level data

:- This study is carried out to determine whether the determining factors for financial distress really do matter significantly to these financial difficulties. Independent variables in this study are leverage, firm size, tangible and intangible assets, Tobins' Q, liquid assets, and change in investment policy. This study gathered data from 17 companies in the basic industry and chemicals listed in the Indonesian Stock Exchange in 6 years (2015-2020) by using multiple regression models to test it. The findings in this study indicate that the size of the company, Tobins' Q, tangible and intangible assets, and changes in investment policy have no significant effect on financial distress. While leverage and liquidity assets have a significant negative effect on financial distress. The results of this study are expected to provide advice and recommendations to companies in managing their company’s finances and establishing good investment policies so that the company’s finances remain stable also maintain the level of leverage doesn’t increase so that the company does’t experience financial distress. When a decrease in the level of the company's liquidity position will increase financial difficulties, the company is not in a position to commit when it matures. Companies with low leverage will have a tendency to protect all shareholders so as not to cause financial difficulties. That's when investors can invest in companies in these conditions and the results can provide an early signal as a sign to managers.

Determining Factors in the Indirect Financial Distress Cost in Companies in the Basic and Chemical Industry Sector Listed on the Indonesia Stock Exchange

Banking sector holds a strategic position that demands excellent risk management. Improper risk management can lead to systemic failures which can affect the financial stability of a nation. Information asymmetry problems between managers and other parties can trigger moral hazard problems. This study examined how corporate social responsibility (CSR) and institutional quality affect bank risk taking and to determine the role of financial constraints in weakening the relationship between CSR and bank risk taking. This quantitative study involved banks listed on the Indonesia Stock Exchange from 2013-2020. Dynamic panel data regression analysis using system generalized method of moments (System GMM) approach was employed in data analysis. The results indicated that CSR and institutional quality had a significant negative influence on bank risk taking. Furthermore, as a moderating variable, financial constraint weakened the relationship between CSR and bank risk taking. The findings of this study added an empirical evidence in the field of financial management on the relationship between CSR, financial constraints, institutional quality and bank risk taking. Bank managers should employ CSR strategies to reduce bank risk taking. In addition, both the government and regulators can improve institutional quality to reduce bank risk taking.

Financial constraint moderate the effect of corporate social responsibility and institutional quality on bank risk taking in idx

Creation of sustainable growth with explainable artificial intelligence: An empirical insight from consumer packaged goods retailers

Existing studies that documented the effect of financial distress on trade credit provisions did not include measures financial constraint. It is possible that financial distress is tie to financial constraints, and both financial distress and financial constraints mutually reinforce each other in their effects on trade credit provision. The purpose of this study is to evaluate the effects of financial constraint and financial distress on trade credit provisions in the UK FTSE 350 listed firms.,This study employs panel data in the estimation of the determinants of accounts payables and accounts receivables of the UK FTSE 350 firms from 2009 to 2017.,This study finds that financial distress has significant positive effect on accounts payables and a significant negative effect on accounts receivables. Financial constraints have significant negative effect on accounts payables and a significant positive effect on accounts receivables.,Trade creditor desiring to maintain an enduring product-market relationship grant more concessions to customer in financial distress. The amount of trade credit that sellers provide to financially constrained firm is an increasing function of the buyer's creditworthiness. The urgent cash needs of financially distressed firms lead them to sell trade receivables to factoring company leading to reduction in trade receivables. Firm facing external financing constraints increase trade credit to customers in anticipation of cash flow inflow to enhance liquidity.,This study shows that financial distress and financial constraints mutually reinforce each other in their effects on trade credit provisions, and firm's financing condition contributes to divergence in trade credit policies.

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Igbekele Sunday Osinubi

Papers

Effects of financial distress and financing constraints on trade credit provisions