Search results for: corporate cash holdings

Authors: Abdulaziz Alomran

Abstract:

This study investigates the impact of corporate cash holdings on equity mutual fund flow using large international sample from 23 countries. Building on the economic mechanisms of what drives investors' decisions when they construct their portfolio, we argue that corporate cash holding level has a significant effect on future cash flow. We find that there is a negative relationship between mutual fund flow and corporate cash holdings which indicate the significant role cash holding decisions have on mutual fund industry. Finally, we present evidence that the negative relationship between fund money sensitivity and level of cash in listed firms varies based on the region of the market. Overall, to explain these results, we highlight the important implications for investors and fund managers in mutual fund industry.

Keywords: corporate cash holdings, mutual funds, fund flow, region effect

Procedia PDF Downloads 0

Authors: Hongmin Chun

Abstract:

This paper examines corporate cash holdings and their effect on the cost of equity capital. In addition, this study examines the potentially different effects when the firm belongs to chaebol and non-chaebol groups. Chaebol is a South Korean form of business conglomerate. Chaebol is typically global multinationals and owns numerous international enterprises, controlled by a chairman with power over all the operations. The overall empirical result suggests that higher cash holdings are a risk increasing factor which holds for the chaebol group of firms. This result is valid in a battery of robustness tests and 2SLS regressions. In Korea, higher cash holdings represent a risk premium factor that is closely related to the overinvestment and agency problems between managers and shareholders.

Keywords: cash holdings, implied cost of equity capital, chaebol, agency problem

Procedia PDF Downloads 180

Authors: Lucy Novianti

Abstract:

The purpose of this study is to determine the effect of corporate governance, ownership structure, and cash holdings on firm value, either direct or indirect through profitability as an intervening variable for non-financial companies listed on the Indonesia Stock Exchange during 2006 to 2014. Samples of 176 firms are chosen based on purposive sampling method. The results of this study conclude that profitability, the size of Audit Committee, audit quality, and cash flow have positive effects on firm value. This study also shows that the meeting frequency of the Board of Directors and free cash flow have negative effects on firm value. In addition, this study finds that the size of the Board of Directors, Independent Commissioner, and ownership structure do not have significant effects on firm value. In this study, the function of profitability as an intervening variable can only be done on the impact of the meeting frequency of the Board of Directors and cash flow on firm value. This study provides a reference for management in decision making concerning the application of corporate governance, cash holdings, and financial performance. Moreover, it can be used as additional information for investors in assessing the feasibility of an investment. Finally, it provides a suggestion for the government regarding the regulation of corporate governance.

Keywords: cash holdings, corporate governance, firm value, ownership structure, profitability

Procedia PDF Downloads 266

Authors: Zahra Amirhosseini, Mahtab Nameni

Abstract:

The aim of this study was to investigate the relationship between growth, beta, and Company's cash. We calculate cash as dependent variable and growth opportunity and beta as independent variables. This study was based on an analysis of panel data. Population of the study is the companies which listed in Tehran Stock exchange and a financial data of 215 companies during the period 2010 to 2015 have been selected as the sample through systematic sampling. The results of the first hypothesis showed there is a significant relationship between growth opportunities cash holdings. Also according to the analysis done in the second hypothesis, we determined that there is an inverse relation between company risk and cash holdings.

Keywords: growth, beta, liquidity, company

Procedia PDF Downloads 399

Authors: Aribisala Oluwadamilare Olufolarin

Abstract:

The objective of this research was to examine how corporate governance and ethical business values impact both the performance of the organization and its employees, as it is essential for any organization to uphold good ethics and corporate governance. The study was conducted at Unilag Holdings Limited (UniHOLDs) to demonstrate that organizations may experience losses if they do not have proper corporate governance and business ethical values in place. The employees' perception of corporate governance and ethics is crucial for the organization. The research indicated a connection between corporate governance and business ethics values, and therefore, correlation analysis was utilized, making it statistically reliable. The results of the test show a strong positive correlation (r=.812, N=94, P<.01) between corporate governance and business ethical values. A questionnaire was distributed to employees at Unilag Holdings Limited (UniHOLDs), with 94 out of 130 completed and returned. The findings indicate that ethical values contribute to employee productivity, and productive employees have a beneficial impact on the organization's performance. Additionally, the study revealed that employees tend to adhere to rules regardless of their ethical nature. To address this, the organization should ensure that top-level managers do not assign unethical tasks to their subordinates. The study recommends that the organization should consistently practice corporate governance and business ethics. The company needs to make sure that its stakeholders continue to support its way of doing things.

Keywords: business ethics, business ethical values, corporate governance and organization, corporate governance

Procedia PDF Downloads 20

Authors: Aribisala Oluwadamilare Olufolarin

Abstract:

The objective of this research was to examine how corporate governance and ethical business values impact both the performance of the organization and its employees, as it is essential for any organization to uphold good ethics and corporate governance. The study was conducted at Unilag Holdings Limited (UniHOLDs) to demonstrate that organizations may experience losses if they do not have proper corporate governance and business ethical values in place. The employees' perception of corporate governance and ethics is crucial for the organization. The research indicated a connection between corporate governance and business ethics values, and therefore, correlation analysis was utilized, making it statistically reliable. The results of the test show a strong positive correlation (r=.812, N=94, P<.01) between corporate governance and business ethical values. A questionnaire was distributed to employees at Unilag Holdings Limited (UniHOLDs), with 94 out of 130 completed and returned. The findings indicate that ethical values contribute to employee productivity, and productive employees have a beneficial impact on the organization's performance. Additionally, the study revealed that employees tend to adhere to rules regardless of their ethical nature. To address this, the organization should ensure that top-level managers do not assign unethical tasks to their subordinates. The study recommends that the organization should consistently practice corporate governance and business ethics. The company needs to make sure that its stakeholders continue to support its way of doing things.

Keywords: business ethics, business ethical values, corporate governance, organization

Procedia PDF Downloads 18

Authors: Ogunmayi Bamidele, Aribisala Oluwadamilare Olufolarin

Abstract:

The objective of this research was to examine how corporate governance and ethical business values impact both the performance of the organization and its employees, as it is essential for any organization to uphold good ethics and corporate governance. The study was conducted at Unilag Holdings Limited (UniHOLDs) to demonstrate that organizations may experience losses if they do not have proper corporate governance and business ethical values in place. The employees' perception of corporate governance and ethics is crucial for the organization. The research indicated a connection between corporate governance and business ethics values, and therefore, correlation analysis was utilized, making it statistically reliable. The results of the test show a strong positive correlation (r=.812, N=94, P<.01) between corporate governance and business ethical values. A questionnaire was distributed to employees at Unilag Holdings Limited (UniHOLDs), with 94 out of 130 completed and returned. The findings indicate that ethical values contribute to employee productivity, and productive employees have a beneficial impact on the organization's performance. Additionally, the study revealed that employees tend to adhere to rules regardless of their ethical nature. To address this, the organization should ensure that top-level managers do not assign unethical tasks to their subordinates. The study recommends that the organization should consistently practice corporate governance and business ethics. The company needs to make sure that its stakeholders continue to support its way of doing things.

Keywords: business ethical values, corporate governance, organization, business ethics

Procedia PDF Downloads 23

Authors: Uzoma Emmanuel Igboji

Abstract:

The study investigates the effects of cash flow position on corporate performance in the manufacturing sector of Nigeria, using multiple regression techniques. The study involved a survey of five (5) manufacturing companies quoted on the Nigerian Stock Exchange. The data were obtained from the annual reports of the selected companies under study. The result shows that operating and financing cash flow have a significant positive relationship with corporate performance, while investing cash flow position have a significant negative relationship. The researcher recommended that the regulatory authorities should encourage external auditors of these quoted companies to use cash flow ratios in evaluating the performance of a company before expressing an independent opinion on the financial statement. The will give detailed financial information to existing and potential investors to make informed economic decisions.

Keywords: cash flow, financing, performance, operating

Procedia PDF Downloads 322

Authors: Nabeel Safdar, Qian Aimin

Abstract:

Corporate philanthropy is important, as the donations have been considered as a source to improve the image of business entity in modern era of high competition. We used data on annual basis from 2000 to 2014 for 1,248 firms listed at Shanghai and Shenzhen stock exchanges. Results for giving firms reveal that there is curve linear relation of profitability and CP, as profitable firms utilize cash in an efficient way and have fewer amounts of slack resource and tradeoff among stakeholder and agency cost made it more justifiable. We found that more profitability does not mean that the cash flows are available, actually good performing firms or profitable firm also good at cash management. Cash is utilized in an effective way by profitable firms, and have fewer extents of slack resources which generate curvilinear relationship of profitability with Corporate Philanthropy. We found that the trend of Corporate Philanthropy also got affected due to natural disasters. Analysis made by innovation, slack resources and directors salary revealed the positive significant relationship. It is not compulsory that firm should be only profitable for engaging in philanthropy rather they should have abundant slack resources to donate.

Keywords: corporate philanthropy, free cash flows, natural disasters, profitability

Procedia PDF Downloads 316

Authors: Gaurav Gupta, Jitendra Mahakud

Abstract:

This study focuses on the significance of internal financing constraints on the determination of corporate fixed investments in the case of Indian manufacturing companies. Financing constraints companies which have less internal fund or retained earnings face more transaction and borrowing costs due to imperfections in the capital market. The period of study is 1999-2000 to 2013-2014 and we consider 618 manufacturing companies for which the continuous data is available throughout the study period. The data is collected from PROWESS data base maintained by Centre for Monitoring Indian Economy Pvt. Ltd. Panel data methods like fixed effect and random effect methods are used for the analysis. The Likelihood Ratio test, Lagrange Multiplier test, and Hausman test results conclude the suitability of the fixed effect model for the estimation. The cash flow and liquidity of the company have been used as the proxies for the internal financial constraints. In accordance with various theories of corporate investments, we consider other firm specific variable like firm age, firm size, profitability, sales and leverage as the control variables in the model. From the econometric analysis, we find internal cash flow and liquidity have the significant and positive impact on the corporate investments. The variables like cost of capital, sales growth and growth opportunities are found to be significantly determining the corporate investments in India, which is consistent with the neoclassical, accelerator and Tobin’s q theory of corporate investment. To check the robustness of results, we divided the sample on the basis of cash flow and liquidity. Firms having cash flow greater than zero are put under one group, and firms with cash flow less than zero are put under another group. Also, the firms are divided on the basis of liquidity following the same approach. We find that the results are robust to both types of companies having positive and negative cash flow and liquidity. The results for other variables are also in the same line as we find for the whole sample. These findings confirm that internal financing constraints play a significant role for determination of corporate investment in India. The findings of this study have the implications for the corporate managers to focus on the projects having higher expected cash inflows to avoid the financing constraints. Apart from that, they should also maintain adequate liquidity to minimize the external financing costs.

Keywords: cash flow, corporate investment, financing constraints, panel data method

Procedia PDF Downloads 245

Authors: Cahyaningsih Cahyaningsih, Fu'ad Rakhman

Abstract:

This study examines empirically the association between corporate social responsibility (CSR) and tax avoidance. This study also investigates the effect of earnings on the relation between CSR and tax avoidance. Effective tax rate (ETR) and cash effective tax rate (CETR) were used to measure tax avoidance. Corporate social responsibility fund (CSRF) and corporate social responsibility disclosure (CSRD) were used as proxies for CSR. Test was conducted for public firms which were listed in the Indonesia Stock Exchange during the period of 2011-2014. Based on slack resource theory, this study finds that the relation between CSR and tax avoidance is moderated by earnings.

Keywords: corporate social responsibility disclosure, corporate social responsibility fund, earnings, tax avoidance

Procedia PDF Downloads 281

Authors: Ugbor Raphael Oluchukwu

Abstract:

Focusing on liquidity comes more naturally to a Chief Executive Officer than an Accountant who is trained to practice accrual accounting. When business is just commencing, it is essentially run on a cheque book (cash accounting) and for as long as there is cash in the accounts, the business is solvent. When complexity sets in and the business adopts financial accounting, the effect of liquidity and cash management becomes more pronounced. The management of cash no doubts impacts positively on the survival and growth of firms. What is in doubt is the amount of cash to be held by a firm as enough cash to enable the firm stay “afloat”. The focus of this paper is to determine liquidity and cash management in business, the Nigerian case. The specific objectives of the study are to do a theoretical review of the amount of cash to be held by a firm as enough cash to enable it stay afloat and to do a theoretical analysis to show the effect of cash flow on the survival and growth of firms in Nigeria.

Keywords: cash, firm survival, growth, liquidity management

Procedia PDF Downloads 593

Authors: Tahar Tayachi, Ahlam Alrehaili

Abstract:

Purpose: The purpose of this paper is to investigate the relationship between the corporate board characteristics and the dividend policy among firms on the Saudi Stock Exchange. Design/Methodology/Approach: This paper uses a sample of 103 nonfinancial firms over a time period of 4 years from 2015 to 2018. To investigate how corporate governance mechanisms such as board independence, the board size, frequency of meetings, and free cash flow impact dividends, the study uses Logit and Tobit models. Findings: This paper finds that board size, board independence, and frequency of board meetings have no influence on a firm’s decision to pay dividends, while board size has a significantly positive impact on the levels of cash dividends paid to investors. This study also finds that the level of free cash flows has a positively significant influence on both the decision to pay dividends and the magnitude of dividend payouts. Research Limitations/Implications: This paper attempts to study the effectiveness of dividend policy among some firms on the Saudi Stock Exchange. Practical Implications: The findings reveal that board characteristics, which represent one of the crucial mechanisms of corporate governance, were found to be complementary to corporate laws and regulations imposed on the Saudi market in 2015. The findings also imply that capital market authorities should revise their corporate regulations and ensure that protection laws are adequate and strong enough to protect the interests of all shareholders. Originality/Value: This paper is among the few studies focusing on dividend policy in Saudi Arabia. Finally, these findings suggest that the improvements in corporate laws in Saudi Arabia led to such an outcome, and it has become prevalent in dividend policy decisions and behaviors of Saudi firms.

Keywords: agency theory, Tobit, corporate governance, dividend payout, Logit

Procedia PDF Downloads 210

Authors: Haytham Yassine

Abstract:

This article mainly aims to detect and understand how money laundering activities are executed by transport of cash, identifying the underlying factors and separating legitimate from illegitimate usage of cash and how it is being used. This research provides academics with additional literature and provides bank supervisors and practitioners with a better understanding of sources and uses of cash in criminal activities and how cash is used in the laundering mechanism. Data are gathered through survey in the Middle East and North Africa region and review of the available research. The results of the analysis will help distinguish the factors affecting preference for cash rather other payment instruments in the region, identify what causes the tendency to launder illegal proceeds through cash transportation and how illegal cash is being laundered and moved. On the other hand, this paper sheds the light on major cash generating criminal activities, its sources and main destinations.

Keywords: illegitimate activities, cash, money laundering, terrorism financing

Procedia PDF Downloads 155

Authors: M. Erol Genevois, D. Celik, H. Z. Ulukan

Abstract:

Automated teller machines (ATMs) can be considered among one of the most important service facilities in the banking industry. The investment in ATMs and the impact on the banking industry is growing steadily in every part of the world. The banks take into consideration many factors like safety, convenience, visibility, cost in order to determine the optimum locations of ATMs. Today, ATMs are not only available in bank branches but also at retail locations. Another important factor is the cash management in ATMs. A cash demand model for every ATM is needed in order to have an efficient cash management system. This forecasting model is based on historical cash demand data which is highly related to the ATMs location. So, the location and the cash management problem should be considered together. Although the literature survey on facility location models is quite large, it is surprising that there are only few studies which handle together ATMs location and cash management problem. In order to fulfill the gap, this paper provides a general review on studies, efforts and development in ATMs location and cash management problem.

Keywords: ATM location problem, cash management problem, ATM cash replenishment problem, literature review in ATMs

Procedia PDF Downloads 485

Authors: Ossai Paulinus Edwin

Abstract:

Cash Management is a broad area having to do with the collection, concentration, and disbursement of cash including measuring the level of liquidity and managing the cash balance and short-Term Investments. Cash Management involves the efficient collection and disbursement of cash and cash equivalents. It also includes management of marketable securities because, in modern Terminology, money comprises marketable securities and actual cash in hand or in a bank. This cash management is concerned with management of cash inflow and cash outflow of a business especially as it concerns a developing nation like Nigeria. The paper throws light on the impact of cashless policy in Nigeria as it was introduced by the Central Bank of Nigeria (CBN) in December 2011 and was kick-started in Lagos in January 2012. Survey research was adopted with the questionnaires as data collection instrument. Responses show that cashless policy if adopted generally shall increase employment opportunities, reduce cash related robbery thereby reducing risk of carrying cash; it shall also reduce cash related corruption and attract more foreign investors to the country. It is expected that the introduction of cashless policy in Nigeria is a step in the right direction as it shall bring about modernization of Nigeria payment system, reduction in the cost of banking services, reduction in high security and safety risk and also curb banking related corruptions.

Keywords: cashless economy, cash management, cashless policy, e-banking, Nigeria

Procedia PDF Downloads 545

Authors: Ossai Paulinus Edwin

Abstract:

Cash Management is a broad area having to do with the collection, concentration and disbursement of cash including measuring the level of liquidity and managing the cash balance and Short-Term Investments. Cash Management involves the efficient collection and disbursement of cash and cash equivalents. It also includes management of marketable securities because, in modern Terminology, money comprises marketable securities and actual cash in hand or in a bank. This cash management is concerned with management of cash inflow and cash outflow of a business especially as it concerns a developing nation like Nigeria. The paper throws light on the impact of cashless policy in Nigeria as it was introduced by the Central Bank of Nigeria (CBN) in December 2011 and was kick started in Lagos in January 2012. Survey research was adopted with the questionnaires as data collection instrument. Responses show that cashless policy if adopted generally shall increase employment opportunities, reduce cash related robbery thereby reducing risk of carrying cash; it shall also reduce cash related corruption and attract more foreign investors to the country. It is expected that the introduction of cashless policy in Nigeria is a step in the right direction as it shall bring about modernization of Nigeria payment system, reduction in the cost of banking services, reduction in high security and safety risk and also curb banking related corruptions.

Keywords: cashless economy, cash management, cashless policy, e-banking, Nigeria

Procedia PDF Downloads 390

Authors: Moridi Fatemeh, Dasineh Mehdi, Jafari Narges

Abstract:

The aim of this study was to investigate the relationship between dividends and investment in a condition of cash flow uncertainty. Previous studies have also found some evidence that there is N-shaped relationship between dividends and investment given different levels of cash uncertainly. Thus, this study examines this relationship over the period 2009-2014 in Tehran Stock Exchange (TSE). Based on our sample and new variables, we found reverse N-shaped relationship in different levels of cash flow uncertainly. This shape was descending in cash flow certainly and uncertainly but it is ascending in medial position.

Keywords: dividends, investment, nonlinear relationship, uncertainty of cash flow

Procedia PDF Downloads 340

Authors: Jonghae Park, Daesung Kim

Abstract:

The impact of aggressive and conservative working capital‘s strategies on the value and profitability of the firms has been evaluated by applying the panel data regression analysis. The control variables used in the regression models are natural log of firm size, sales growth, and debt. We collected a panel of 13,988 companies listed on the Korea stock market covering the period 2000-2016. The major findings of this study are as follow: 1) We find a significant negative correlation between firm profitability and the number of days inventory (INV) and days accounts payable (AP). The firm’s profitability can also be improved by reducing the number of days of inventory and days accounts payable. 2) We also find a significant positive correlation between firm profitability and the number of days accounts receivable (AR) and cash ratios (CR). In other words, the cash is associated with high corporate profitability. 3) Tobin's analysis showed that only the number of days accounts receivable (AR) and cash ratios (CR) had a significant relationship. In conclusion, companies can increase profitability by reducing INV and increasing AP, but INV and AP did not affect corporate value. In particular, it is necessary to increase CA and decrease AR in order to increase Firm’s profitability and value.

Keywords: working capital, working capital management, firm value, profitability

Procedia PDF Downloads 194

Authors: Megha Agarwal

Abstract:

The research paper is an effort to compare the earnings based and cash flow based methods of valuation of an enterprise. The theoretically equivalent methods based on either earnings such as Residual Earnings Model (REM), Abnormal Earnings Growth Model (AEGM), Residual Operating Income Method (ReOIM), Abnormal Operating Income Growth Model (AOIGM) and its extensions multipliers such as price/earnings ratio, price/book value ratio; or cash flow based models such as Dividend Valuation Method (DVM) and Free Cash Flow Method (FCFM) all provide different estimates of valuation of the Indian giant corporate Reliance India Limited (RIL). An ex-post analysis of published accounting and financial data for four financial years from 2008-09 to 2011-12 has been conducted. A comparison of these valuation estimates with the actual market capitalization of the company shows that the complex accounting based model AOIGM provides closest forecasts. These different estimates may be derived due to inconsistencies in discount rate, growth rates and the other forecasted variables. Although inputs for earnings based models may be available to the investor and analysts through published statements, precise estimation of free cash flows may be better undertaken by the internal management. The estimation of value from more stable parameters as residual operating income and RNOA could be considered superior to the valuations from more volatile return on equity.

Keywords: earnings, cash flows, valuation, Residual Earnings Model (REM)

Procedia PDF Downloads 381

Authors: Asiye Aydilek, Harun Aydilek

Abstract:

We investigate the costs of various suboptimal allocations in housing, consumption, bond and stock holdings of a retiree in a setting with recursive utility, considering the extensive empirical evidence that investors make suboptimal decisions in different ways. We find that suboptimal stock holdings impose only modest costs on the retiree. This may have a merit in explaining the limited stock investment in the data. The cost of suboptimal bond holdings is higher than that of stocks, but still small. This may partially explain why many more people hold bonds compared to stocks. We find that positive deviations from the optimal level are less costly relative to the negative ones in suboptimal housing allocations. This may help us to clarify why the elderly are over consuming housing, as seen in the housing data. The cost of suboptimal consumption is quite high and the highest of all. Our paper suggests that, in terms of welfare, the decisions of how much of liquid wealth to use for consumption and for saving are more important than the decision about the composition of liquid savings. Suboptimal stock holdings are twice more costly in power utility and suboptimal bond holdings are twenty times more costly in recursive utility. Recursive utility is superior to power utility in terms of rationalizing many people's preference for bonds instead of stocks in investment.

Keywords: housing, recursive utility, retirement, suboptimal decisions, welfare cost

Procedia PDF Downloads 320

Authors: Imen Latrous

Abstract:

Family firm is the most common form of business organization in the world. Many family businesses rely heavily on their own capital to finance their expansion. This dependence on internal funds for their investment may be deliberate to maintain the family dominant position or involuntary as family firms have limited access to external funds. Our understanding of family firm’s choice to fund their own growth using existing capital is somewhat limited. The aim of this paper is to study whether the presence of a controlling family in the company either mitigates or exacerbates external financing constraints. The impact of family ownership on investment–cash flow sensitivity is ultimately an empirical question. We use a sample of 406 Canadian firms listed in Toronto Stock exchange (TSX) over the period 2005–2014 in order to explore this relationship. We distinguish between three elements in the definition of family firms, specifically ownership, control and management, to explore the issue whether family firms are more efficient organisational form. Our research contributes to the extant literature on family ownership in several ways. First, as our understanding of family firm’s investment cash flow sensitivity is somewhat limited in recession times, we explore the effect of family firms on the relation between investment and cash flow during the recent 2007-2009 financial crisis. We also analyse this relationship difference between family firms and non family firms before and during financial crisis. Finally, our paper addresses the endogeneity problem of family ownership and investment-cash flow sensitivity.

Keywords: family firms, investment–cash flow sensitivity, financial crisis, corporate governance

Procedia PDF Downloads 331

Authors: Mohd Bahroddin Badri, Ridzuan Masri

Abstract:

Despite the existence of large volume of waqf assets, it is argued that the potential of these assets not fully unleashed. There are many waqf assets especially in the form of land waqf that are idle and undeveloped mainly because of the insufficient fund and lack of investment expertise. This paper attempts to explore few cases on the innovation of waqf development in Malaysia and some countries that demonstrate synergistic collaboration between stakeholders, e.g., the government, nazir, Islamic religious councils, corporate entities and Islamic financial institutions for waqf development. This paper shows that cash waqf, corporate waqf, Build-Operate-Transfer (BOT) and Sukuk are found to be contemporary mechanisms within Islamic finance ecosystem that drive and rejuvenate the development of waqf to the next level. It further highlights few samples of waqf Sukuk that were successfully issued in selected countries. This paper also demonstrates that the benefit of waqf is beyond religious matters, which may also include education, healthcare, social care, infrastructure and corporate social responsibility (CSR) activities. This research is qualitative in nature, whereby the researcher employs descriptive method on the collected data. The researcher applies case study and library research method to collect and analyse data from journal articles, research papers, conference paper and annual reports. In a nutshell, the potential of contemporary models as demonstrated in this paper is very promising, in which the practical application of those instruments should be expanded for the rejuvenation of waqf asset.

Keywords: cash waqf, corporate waqf, Sukuk waqf, build-operate-transfer

Procedia PDF Downloads 186

Authors: L. Feleagă, M. Dumitrașcu, N. Feleagă

Abstract:

This article is a research on corporate governance. The aim of the study is to focus a special attention on the importance of corporate social responsibility and corporate governance, which are relevant, indeed necessary, for organizations. In this regard, we analyzed the corporate social responsibility in the context of corporate governance for companies listed on Bucharest and Bombay Stock Exchange. Therefore, we bring into the spotlight some differences between India and Romania linked with the importance ascribed to corporate social responsibility of a company. We presented the results of the demarche and we concluded suggestions regarding further research in this area. The study increases the awareness, identifies and articulates desirable behaviors, which are not intended to be exhaustive.

Keywords: corporate governance, corporate social responsibility, disclosure, listed companies

Procedia PDF Downloads 315

Authors: Feddaoui Amina

Abstract:

In a broad sense, corporate governance covers the organization of the control and management. The term is also used in a narrower sense, to refer to the relationship between shareholders, and the company’s board. There are a lot of discussions devoted to the understanding of the corporate governance role and its principles. In this paper, we are going to describe the definition of corporate governance as a control system and its principles, and find the role of corporate governance and its pillars. Finally, we are going to drop the theoretical study on the case of Japan.

Keywords: corporate governance, place, role, Japan

Procedia PDF Downloads 339

Authors: Mateusz Rak

Abstract:

Objective: The paper aims to present various sources of competitive advantage which may occur when an enterprise strategically applies its concept of corporate philanthropy. Methodology: The review of the literature and available reports on the research regarding corporate philanthropy. Results: Strategic philanthropy is a positive phenomenon. Unfortunately, enterprises in Poland do not see all positive sides of such activities yet. Three kinds of corporate philanthropy may be described. They are to fulfil a social duty, improve the company reputation and gain a competitive edge. Practical implications: Showing enterprises the advantages of taking philanthropic actions, in particular, a large role of strategic philanthropy in gaining a competitive edge in the market as well as how to avoid negative consequences of corporate philanthropy. The paper presents corporate philanthropy on a few layers: as a CSR element, actions generating values in products, actions improving a corporate image in the market, altruist actions of employees.

Keywords: corporate philanthropy, corporate social responsibility, corporate foundations, CSR

Procedia PDF Downloads 253

Authors: P. Lalitha

Abstract:

Economic and social empowerment and educational upliftment of socially disadvantaged groups and marginalized sections of society is necessary for achieving faster and more inclusive development. Programmes are being implemented through states, government’s apex corporations, and NGOs for the up-liftment of disadvantaged and marginalized sections of society. As per the primary data collected, a majority of tribal land holdings (60%) are below 2 hectare and only 5% are above 10 hectares. However, the ownership of large holdings does not give a distinct advantage unless the land is of good quality. There are areas in which even large holdings beyond 5 hectares are not sufficient to meet the food necessity of the tribal families all-round the year. Some initiatives e.g. grain-golas, jhum cultivation, wadi project, Joint Forest Management(JFM), enhancing Livelihood and Health through Traditional Knowledge Management, Associating Individual Rural Volunteers (IRVs) in SHG Bank Linkage Programme have been taken in various tribal areas of the country.

Keywords: tribals, unemployment, health, food

Procedia PDF Downloads 293

Authors: Navdeep Kaur

Abstract:

The primary focus of this study is to answer “What is the role of corporate governance in corporate failures? Does poor corporate governance lead to corporate failures? If so, how?”. In doing so, the study examines the literature from multiple fields, including corporate governance, corporate failures and organizational decision making, and presents a research gap to analyze and explore the relationship between corporate governance practices and corporate failures through a behavioral lens. In approaching this, a qualitative research methodology is adopted to analyze the failure of Enron Corporation (United States). The research considered the case study organizations as the primary unit of analysis and the decision-makers as the secondary unit of analysis. Based on this research approach, the study reports the analytical results drawn from extensive and triangulated secondary data. The study then interprets the results in the context of the theoretical synthesis. The study contributes towards filling a gap in the research and presents a behaviourally plausible decision centered model of the role of corporate governance in corporate failures. The model highlights the critical role of the behavioral aspects of corporate governance decision making in corporate failures and focuses attention on the under-explored aspects of corporate governance decision making. The study also suggests a further understanding of ‘A Behavioral Theory of the Firm’ in relation to corporate failures.

Keywords: behavior, corporate failure, corporate governance, decision making, values

Procedia PDF Downloads 137

Authors: Zeliha Sayar

Abstract:

Central banks all over the world appear to be focusing first and foremost on retail central bank digital currency CBDC), i.e., digital cash/money. This approach is predicated on the belief that the use of cash has decreased, owing primarily to technological advancements and pandemic restrictions, and that a suitable foundation for the transition to a cashless society has been revealed. This study aims to contribute to the debate over whether digital money/CBDC can be a substitute or supplement to physical cash by examining the potential effects on cash demand. For this reason, this paper compares two emerging countries, Turkey, and Thailand, to demystify the impact of e-payment and COVID-19 restrictions on cash demand by employing fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and the canonical cointegrating regression (CCR). The currency in circulation in two emerging countries, Turkey and Thailand, was examined in order to estimate the elasticity of different types of retail payments. The results demonstrate that real internet and mobile, cart, contactless payment, and e-money are long-term determinants of real cash demand in these two developing countries. Furthermore, with the exception of contactless payments in Turkey, there is a positive relationship between the currency in circulation and the various types of retail payments. According to findings, COVID-19 restrictions encourage the demand for cash, resulting in cash hoarding.

Keywords: CCR, DOLS, e-money, FMOLS, real cash

Procedia PDF Downloads 112

Authors: Lovorka Galetić, Ivana Načinović Braje, Nevenka Čavlek

Abstract:

The purpose of this paper is to analyze the relationship between corporate culture and firm performance. Extensive theoretical and empirical evidence on this issue is provided. A quantitative methodology was used to explore relationship between corporate culture and performance among large Croatian companies. Corporate culture was explored by using Denison framework. The research revealed a positive, statistically significant relationship between mission and performance. Other dimensions of corporate culture (involvement, consistency and adaptability) show only partial relationship with performance.

Keywords: corporate culture, Croatia, Denison culture model, performance

Procedia PDF Downloads 533