Showing papers on "Negative relationship published in 2013"
TL;DR: This paper conducted a meta-analytic review in which they test and provide support for a portion of Hausknecht and Trevor's model of collective turnover and found that the mean corrected correlation between turnover and organizational performance is −.03.
475 citations
TL;DR: In this article, the authors argue that there exists a negative relationship between financial resource availability and CSR expenditures for firms in Ghana, a sub-Saharan African emerging economy, and use lagged data from the Ghana Investment Promotion Centre and find that Return on Sales, Return on Equity, and Net Profitability were consistently associated with lower CSR expenditure.
Abstract: Studies done in developed economies have demonstrated a positive relationship between financial resource availability and CSR. Arguments that we term the Institutional Difference Hypothesis (IDH) drawn from the institutional literature, however, suggest that institutional differences between developed and developing economies are likely to result in different CSR implications. Integrating the logic of IDH with insights from slack resources theory, we argue that there exists a negative relationship between financial resource availability and CSR expenditures for firms in Ghana, a sub-Saharan African emerging economy. We use lagged data from the Ghana Investment Promotion Centre and find that Return on Sales, Return on Equity, and Net Profitability were consistently associated with lower CSR expenditures. We highlight the implications of our findings for research and managers.
253 citations
TL;DR: In this article, the authors show that the relationship between inequality and growth depends on which component is larger, i.e., inequality of opportunity and effort, and they find a positive relationship between effort and growth.
240 citations
TL;DR: The authors examined the relationship between a range of new public management (NPM) practices and citizens' perceptions of service efficiency, responsiveness, equity and effectiveness in English local governments, and found that public-private relationships have a negative relationship with citizens" perceptions of all four dimensions of local service performance, but an entrepreneurial strategic orientation exhibits a positive association with all four.
Abstract: We examine the relationship between a range of new public management (NPM) practices and citizens' perceptions of service efficiency, responsiveness, equity and effectiveness in English local governments. We find that public–private relationships have a negative relationship with citizens' perceptions of all four dimensions of local service performance, but an entrepreneurial strategic orientation exhibits a positive association with all four. Performance management is also likely to positively influence rather than negatively influencing citizens' perceptions of local public services. Further analysis revealed that the impact of NPM practices varies according to the level of socio-economic disadvantage confronted by local governments.
225 citations
TL;DR: The authors found that women work more than men at home and work less for pay and at work in 27 countries, including Australia and Germany, and found that men and women average about the same amount of total work.
Abstract: Time-diary data from 27 countries show a negative relationship between GDP per-capita and gender differences in total work—for pay and at home. In rich non-Catholic countries, men and women average about the same amount of total work. Survey results show scholars and the general public believe that women work more. Widespread average equality does not arise from gender differences in the price of time, intra-family bargaining or spousal complementarity. Several theories, including ones based on social norms, might explain these findings and are consistent with evidence from the World Values Surveys and microeconomic data from Australia and Germany.
192 citations
TL;DR: This paper investigated the relationship between ex-ante total skewness and holding returns on individual equity options and found that the difference in average returns between low and high skewed options is large, ranging from 10 to 50 per week, even after controlling for risk.
Abstract: We investigate the relationship between ex-ante total skewness and holding returns on individual equity options. Recent theoretical developments predict a negative relationship between total skewness and average returns, in contrast to the traditional view that only coskewness should be priced. We find, consistent with recent theory, that total skewness exhibits a strong and negative relationship with average option returns. The differences in average returns between low and high skewed options is large, ranging from 10 to 50 per cent per week, even after controlling for risk. Our findings suggest that these large premiums compensate intermediaries for bearing unhedgable risk when accommodating the relatively high investor demand for lottery-like options.
179 citations
TL;DR: The authors reexamine the inverted-U relationship between competition and innovation by using data from publicly traded manufacturing firms in the United States and find that the U.K. manufacturing industries are technologically more neck-and-neck than their counterparts in the USA.
Abstract: I reexamine the inverted-U relationship between competition and innovation (modeled and tested by Aghion et al. (2005)) by using data from publicly traded manufacturing firms in the United States. I control for the possible endogeneity of competition by using a trade-weighted average of industry exchange rates as an instrument. I find a mildly negative relationship between competition (as measured by the inverse of markups) and innovation (as measured by citation-weighted patents). The negative relationship is robust to many alternative assumptions and specifications. To reconcile the mildly negative relationship in the U.S. data with the inverted-U relationship that Aghion et al. (2005) find in the U.K. data, I modify their theoretical model and show that the modified model can explain both negative and inverted-U relationships. The key theoretical assumption is that the U.K. manufacturing industries are technologically more neck-and-neck than their counterparts in the United States. I find support for t...
174 citations
TL;DR: In this article, the authors investigated the relationship between the energy intensity of Chinese cities and the location of foreign firms employing a unique dataset of 206 of the largest prefecture-level cities between 2005 and 2008, and revealed a non linearinverted-U shaped relationship between energy intensity and city-level per capita income with the majority of cities on the downward slope of the curve.
170 citations
TL;DR: In this paper, the impact of the Sarbanes-Oxley Act on the relationship between corporate governance and company performance was studied and the most important contribution is a proposal of a governance measure, namely, dollar ownership of the board members, that is simple, intuitive, less prone to measurement error, and not subject to the problem of weighting a multitude of governance provisions in constructing a governance index.
Abstract: We study the impact of the Sarbanes-Oxley Act on the relationship between corporate governance and company performance. We consider 5 measures of corporate governance during the period 1998–2007. We find a significant negative relationship between board independence and operating performance during the pre-2002 period, but a positive and significant relationship during the post-2002 period. Our most important contribution is a proposal of a governance measure, namely, dollar ownership of the board members, that is simple, intuitive, less prone to measurement error, and not subject to the problem of weighting a multitude of governance provisions in constructing a governance index.
146 citations
TL;DR: The results indicate that a high level of Facebook usage is associated with negative relationship outcomes, and that these relationships are indeed mediated by Facebook-related conflict.
Abstract: The purpose of the present study was to investigate the relationship between using the social networking site known as Facebook and negative interpersonal relationship outcomes. A survey of 205 Facebook users aged 18–82 was conducted using a 16-question online survey to examine whether high levels of Facebook use predicted negative relationship outcomes (breakup/divorce, emotional cheating, and physical cheating). It was hypothesized that those with higher levels of Facebook use would demonstrate more negative relationship outcomes than those with lower use. The study then examined whether these relationships were mediated by Facebook-related conflict. Furthermore, the researchers examined length of relationship as a moderator variable in the aforementioned model. The results indicate that a high level of Facebook usage is associated with negative relationship outcomes, and that these relationships are indeed mediated by Facebook-related conflict. This series of relationships only holds for those...
136 citations
TL;DR: In this paper, the authors explore the relationship between remittances and financial development using macro-and micro-level data, and find evidence of a negative relationship between the remittance and financial deepening in developing countries.
Abstract: Financial development is commonly identified as an important condition for fostering investment and economic growth. It is also believed that migrants' remittances stimulate financial development in the receiving economy, contributing indirectly to economic growth. We explore the relationship between remittances and financial development using macro- and micro-level data. From cross-country panel data, we find evidence of a negative relationship between remittances and financial deepening in developing countries. Using household survey data from a study of migrants' remittances in two CIS countries, Azerbaijan and Kyrgyzstan, we also investigate the relationship between remittances, financial intermediation and 'financial literacy' among remittance-receiving households. While we find some evidence of a positive, albeit weak, relationship for Kyrgyzstan, in Azerbaijan, the relatively more financially developed economy, we uncover a strong perverse relationship. Remittances appear to deter bank intermediation and use of formal banking services. Possible reasons are explored and areas for further investigation identified.
TL;DR: A new matched employer–employee panel dataset for Austrian firms for the period 2002–2005 is used to study the relationship between the age structure of employees, labour productivity and wages, and indicates that firm productivity is not negatively related to the share of older employees it employs.
TL;DR: The findings indicate that hospital efficiency changes the form of the relationship between structural quality and patient satisfaction as a moderator variable, and the effect of hospital efficiency might be improved for inefficient small and medium size hospitals by taking successful large hospitals as role models.
TL;DR: This article showed that individuals facing bad (good) collective economic conditions apply a higher penalty to presidential approval for perceived political corruption, which holds across both an individual-level indicator of national economic assessment and a regional economic measure; they further test, and find less substantial results for, the moderating influence of personal economic conditions on the political toll of corruption perce...
Abstract: Under what conditions do citizens connect concerns about corruption to their evaluations of sitting executives? In contrast to conventional scholarship positing a direct, negative relationship between corruption and political support, we build on a small but suggestive body of research to argue that this relationship is conditional on economic context. We test this claim with national survey data collected in 19 presidential systems as part of the AmericasBarometer 2010 study. Using both fixed effects ordinary least squares and hierarchical linear regression analyses, we show that individuals facing bad (good) collective economic conditions apply a higher (lower) penalty to presidential approval for perceived political corruption. This result holds across both an individual-level indicator of national economic assessment and a regional economic measure; we further test, and find less substantial results for, the moderating influence of personal economic conditions on the political toll of corruption perce...
TL;DR: In this article, the authors examined the relationship among private transport energy consumption, population, income, urban density, and several variables (e.g., network size and prices) that describe the nature of the public and private transport systems of those cities.
TL;DR: In this article, the authors used logit regression to test the relationship between spin-off success and multiple factors derived from the extant literature, including venture capital, multiple and external licenses, outside management, joint ventures with other companies, previous faculty consulting experience, and a negative relationship to post-spin-off services provided by universities.
Abstract: University spin-offs are an important vehicle for knowledge dissemination and have the potential to generate jobs and economic growth. Despite their importance, little research exists on spin-off performance or impact, especially from the perspective of academic entrepreneurs. Using logit regression, this article makes a scholarly contribution by testing the relationship between spin-off success—defined here as technology commercialization—and multiple factors derived from the extant literature. Several significant variables are found to enable commercialization success within the sample, including venture capital, multiple and external licenses, outside management, joint ventures with other companies, previous faculty consulting experience, and—surprisingly—a negative relationship to post-spin-off services provided by universities. The results have important implications for public policy and management, supporting an overall “open innovation” approach to spin-off success.
TL;DR: In this paper, the authors used conditional directional distance functions to examine the link between regional environmental efficiency and economic growth and found a negative relationship between regions' GDP per capita and environmental inefficiency up to a certain level.
TL;DR: This paper showed that when the current house provides a hedge against the risk associated with the future housing consumption, households are willing to accept a lower return to compensate for risk, thus weakening the positive risk-return relationship.
Abstract: Standard theory predicts a positive relationship between risk and return, yet recent data show that housing returns vary positively with risk in some markets but negatively in others. This paper rationalizes these cross-market differences in the risk-return relationship for housing, and in so doing, explains the puzzling negative relationship. The paper shows that when the current house provides a hedge against the risk associated with the future housing consumption, households are willing to accept a lower return to compensate for risk, thus weakening the positive risk-return relationship. Further, in markets with less elastic housing supply and a growing population, hedging incentives can be sufficiently strong to make the relationship negative. The empirical analysis confirms these predictions, suggesting that hedging incentives, housing supply, and urban growth are indeed central to understanding the risk-return relationship for housing. The Author 2013. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com., Oxford University Press.
TL;DR: In this paper, the authors examined the relationship between economic growth, employment and foreign direct investment in the manufacturing and servicing sectors between 1990 and 2009, and found that FDI in the servicing sector has a positive relationship with economic growth while FDI from the manufacturing sector had a negative relationship.
Abstract: The study examines the links between Nigerian economic growth, employment and foreign direct investment (FDI) in the manufacturing and servicing sectors between 1990 and 2009. The significant results of the Johansen cointegration technique and the vector error correction model reveal that FDI in the servicing sector has a positive relationship with economic growth while FDI in the manufacturing sector has a negative relationship. FDI in the manufacturing sector has a positive relationship with employment rate while FDI in the servicing sector has a negative relationship with employment rate. Granger causal relationships among these variables exist. In the growth equation, causality runs from growth to FDI in the service sector while growth and FDI in the manufacturing sector have bidirectional causal effect. For the employment equation, unidirectional causality runs from FDI in the service and manufacturing sectors to employment rate.
TL;DR: It is shown that innovation-related variables follow the predictions of the hypotheses based on micro data of German firms in the electrical engineering and machinery industry and show that firm size and export intensity are positively correlated with participation.
Abstract: This paper explores the decision of small- and medium-sized enterprises (SMEs) to participate in official standard setting alliances. Based on micro data of German firms in the electrical engineering and machinery industry, we show that innovation-related variables follow the predictions of our hypotheses. Research and development (R&D) intensity exhibits an inverse U-shaped relationship on the likelihood to join alliances. The positive relation suggests that SMEs aim to access the knowledge of larger firms whereas the negative relationship indicates that SMEs exceeding a certain threshold of R&D activity are reluctant to participate in standardization because their knowledge is too essential to disclose to competitors. The importance to access external knowledge via standardization committees is underlined by a positive correlation with the relevance of incoming knowledge spillovers and a negative correlation with the relative size of companies' patent portfolios. Besides these variables, we also explore the traditionally considered factors for alliance formation and show that firm size and export intensity are positively correlated with participation.
TL;DR: In this article, the authors examined the relationship between managerial ownership and different dimensions of corporate social responsibility (CSR) in the hospitality industry and found that managerial ownership has a significant negative relationship with employee relations and a weak negative one with diversity dimensions, while having an insignificant impact on the community, environment, and product dimensions.
TL;DR: In this paper, the authors explored the relationship between CSR and FP by taking the data from 15 companies listed on Karachi stock exchange, using correlation analysis which is used to find the cause and effect of the relationship.
Abstract: The concept of the corporate social responsibility of organizations has a significant interest in Pakistan over the last decade. While international data shows significant relationship between CSR and FP of the firms. This paper tries to explore the relationship between CSR &FP by taking the data from15 companies listed on Karachi stock exchange, using correlation analysis which is used to find the cause and effect of the relationship. CSR is the foundation to understand the responsibilities of organization towards the society where the organization executes their activities. FP plays the vital role to carry out the CSR activities as the strong financial performance results in provision of necessary and reasonable funds and investments to carry out their social activities. These CSR activities not only enhance the firm's social value and reputation but also the profitability as well. The study result shows that there is a considerable positive relationship between the CSR and Financial performance of the firm, and firms spending on CSR not only benefits from continuous long term sustainable development but also enjoy enhanced FP. century larger firms face large number of changes and challenges including the corporate social responsibility as being one of the key problems. It suggests the importance of understanding of the CSR by the organization towards the society which also impacts the financial performance of the firm. The CSR activities are treated as an investment not as a cost or expense where it shows the relationship between corporation and the stakeholders such as the customers, investors, employees and society as a whole. The business's purpose is not only to earn profit but the welfare of the society as well. Some studies have shown the positive correlation between the CSR and financial performance while other studies show the negative relationship between them. Each company performs differently for the implementation of CSR depending on different factors like the culture of the organization, size or the stakeholder demand. Corporate social responsibility is generally defined as while company is performing its core business operations, it considers and handles the influence of these operations on society, economy and atmosphere (10). CSR can be defined when a firm apply its rules and regulations, the welfare of its investors and society should be considered as its duty (7). This paper shows the impact of CSR on financial performance of the firms in 15 listed companies on Karachi Stock Exchange. Pakistan has a background of typical developing country with issues such as the low literacy rate, energy crises, lack of infrastructure, terrorism etc. The welfare role of the government is unrevealing under these conditions. Therefore, organizations have an opportunity to increase their welfare role for the society in exchange of better reputation and growth in business which ultimately leads to strong financial performance and high profitability. The society in general faces many problems in developing countries. So CSR should contribute to solve these problems and challenges. The purpose of this study is to find out the impact of CSR on firm's financial performance, the CSR cost and economic benefits. Impact of CSR on firm's profitability (net profit & total assets).
TL;DR: In this paper, an empirical analysis was conducted on Chinese hi-tech manufacturing firms, using information related to the innovation activities of 303 firms, and the empirical results suggest that ownership type affects the positive relationship between three sources of innovation (internal R&D activities, partnering with alliance partners, and partnering with universities) and innovation performance, as well as the negative relationship between external contracting and product or process innovation.
25 Apr 2013
TL;DR: In this article, the authors examined the impact of firm specific and macroeconomic factors on profitability of food sector in Pakistan and found that the profitability of the food sector is shaped by firm specific factors and not macroeconomic variables.
Abstract: The aim of this study is to examine the impact of firm specific and macroeconomic factors on profitability of food sector in Pakistan. This study explores the impact of firm specific factors on profitability of companies listed in food sector ofKarachistock market in the presence of food inflation by employing multivariate regression analysis in common effect setting for the period of 2002-2006. The firm specific factors include debt to equity, tangibility, growth and size and macroeconomic factor include food inflation. Findings of study reveal the presence of significant negative relationship between size and profitability. However, tangibility, growth of the firm and food inflation are found insignificantly positively related to profitability. Similarly, an insignificant negative relationship is observed between debt to equity ratio of firm and its profitability. Empirical results provide evidence that the profitability of food sector is shaped by firm specific factors and not macroeconomic variables. One important limitation of study is that it only considers one macroeconomic factor i.e. food inflation. In future studies more macroeconomic factors will be explored to examine their impact on profitability of food sector firms. However, this study still provides significant insight about dynamics of profitability in food sector and helps in making optimal decisions of resource allocation in food sector of Pakistani equity market.
TL;DR: The authors assesses the role of credit constraints for exports at the firm level by using data on Chinese enterprises compiled by the National Bureau of Statistics of China and find that credit constraints are detrimental for exports.
Abstract: This article assesses the role of credit constraints for exports at the firm level. Theoretical models by Chaney, Manova, and others suggest that credit constraints are detrimental for exports. We examine this hypothesis empirically at the firm level by using data on Chinese enterprises compiled by the National Bureau of Statistics of China. We approximate credit constraints by financial variables such as a firm's debt ratio or the liquid-to-total-capital ratio. We then consider the impact of these financial fundamentals on the extensive and the intensive margins of firm-level exports. In particular, we focus on the impact of credit constraints on a firm's propensity to export at all (which we model by means of a logit model) and on a firm's export--sales ratio (which we model by a fractional response model based on Papke and Wooldridge (1996 Journal of Applied Econometrics 11, 619--32). The empirical results confirm the negative relationship between exports and credit constraints suggested by previous theoretical work. Credit constrained firms are less likely to be exporters and have lower export quotas. The results are robust when using alternative explanatory variables and including further explanatory variables. (JEL Codes: F14; G32) Copyright The Author 2013. Published by Oxford University Press on behalf of Ifo Institute, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.
TL;DR: In this article, the relationship between quality of work and productivity was inspected using Spanish aggregate data for the period 2001-2006, and it was shown that quality is not only an objective per se, but also may be a production factor able to increase the wealth of regions.
Abstract: We inspect the relationship between quality of work and productivity. Using Spanish aggregate data for the period 2001–2006, we find that quality of work is an additional factor to explain productivity levels in sectors and regions. Consequently, quality of work is not only an objective per se, but it also may be a production factor able to increase the wealth of regions. In our work we use two alternatives definitions of quality of work, coming respectively from survey data and from a social indicators approach. Besides, we employ two different measurements of labour productivity, in order to test the robustness of our result. We estimate our model using a simultaneous equation model for our panel of data, and we find important differences in high and low human capital sectors. The former display a positive relationship between quality of work and productivity, while the latter show a negative relationship.
TL;DR: In this paper, the authors found that there is a positive relationship between leverage, liquidity and profitability of insurance firms in Ghana, and that the explanatory variables used in this study should be regressed on Return on Equity to find their extent of relationship on profitability.
Abstract: The general objective of the study is to find out the determinants of the profitability of insurance firms in Ghana. Secondary data on financial reports were collected from sixteen insurance firms in Ghana for the period 2005 to 2010. The study was quantitative in nature. It adopted the longitudinal time dimension, specifically, the panel method and ordinary least square regression. The study discovered that, apart from tangibility which has a negative relationship, there is a positive relationship between leverage, liquidity and profitability of insurance firms in Ghana. It was also concluded that, the profitability model adopted has been explained in respect to all the independent variables and that the degree of error is less than 20%. Finally, it is suggested that the explanatory variables used in this study should be regressed on Return on Equity to find their extent of relationship on profitability.
TL;DR: In this paper, the authors argue that conflicts between majority and minority owners, known as principal-principal conflicts, and cronyism in the board of directors affect firm risk taking, and that institutional corporate governance reform to appoint outside directors may not have an immediate effect on reducing these problems.
Abstract: Can internal corporate governance mechanisms (such as boards of directors) and external corporate governance mechanisms (such as institutional reform) promote risk-taking behavior in family firms? This paper argues that conflicts between majority and minority owners, known as principal–principal conflicts, and cronyism in the board of directors affect firm risk taking. Moreover, institutional corporate governance reform to appoint outside directors may not have an immediate effect on reducing these problems. Based on a sample of family firms in Taiwan, we find that outside directors reduce the negative relationship between family ownership/involvement and risk taking. However, when their influence is examined further, it is found that in those sample firms that went public after institutional reform, outside directors did not improve the relationship between family ownership/involvement and risk taking.
19 Jul 2013
TL;DR: In this paper, a Tobit model with endogenous regressors is used to investigate the impact of female board members on agency cost, using growth opportunities as a measure of agency cost and found a significant negative relationship between the proportion of women on boards and firm value along with an increase in company agency cost.
Abstract: This study investigates the link between female board directors and company financial performance and agency costs in Sri Lanka's publicly listed companies. In order to investigate the impact of board gender diversity on firm financial performance, a dynamic panel generalised method of moment estimation is applied. Three variables are used as proxies for gender diversity of the board of directors, namely the percentage of women on the board, a dichotomous dummy and the Blau index. A Tobit model with endogenous regressors is used to investigate the impact of female board members on agency cost, using growth opportunities as a measure of agency cost. After controlling for size, industry and other corporate governance measures, this study finds a significant negative relationship between the proportion of women on boards and firm value along with an increase in company agency cost. This evidence provides insights for governments and academic institutions in their efforts to provide resources that will help enhance women's leadership skills.
01 Oct 2013
TL;DR: In this paper, a study was conducted to establish whether there is any significant relationship between environmental accounting and profitability of selected firms listed in India and the data for the study were collected from annual reports and accounts of 14 randomly selected quoted companies in Bombay Stock Exchange in India.
Abstract: Environmental accounting is the ability to provide accurate information in the financial statements regarding the estimated social cost occasioned by the production externalities on the environment and how much deliberate intervention cost had been incurred to bridge the gap between the marginal social cost and the marginal private cost by a firm. The objective of this study is to establish whether there is any significant relationship between environmental accounting and profitability of selected firms listed in India. The data for the study were collected from annual reports and accounts of 14 randomly selected quoted companies in Bombay Stock Exchange in India. The data were analyzed using multiple regression models. The key findings of the study shows that there is significant negative relationship between Environmental Accounting and Return on Capital Employed (ROCE) and Earnings per Share (EPS) and a significant positive relationship between Environmental Accounting and Net Profit Margin and Dividend per Share. Based on this it was recommended that government should give tax credit to organizations that comply with its environmental laws and that environmental reporting should be made compulsory in India so as to improve the performance of organizations and the nation as a whole.