Diversification strategy, efficiency, and firm performance: Insight from emerging market

Gyan, Alex Kwaku; Bakri, Abdul Karim

doi:10.1016/j.ribaf.2017.07.045

Cited by 41 publications

(86 citation statements)

References 46 publications

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“…Thus, the first hypothesis in this study is rejected. Debt to asset ratio that have positive effect on returns on assets, consistent with Gyan, Brahmana, & Karim (2017). Marketing expenses also has positive impact on firm's performance, this is consistent with Meyer & Ujah (2017).…”

Section: Discussionsupporting

confidence: 72%

“…Hence, it should be add to the model the additional predictor to make leverage controllable, such as mediator or moderator variable. Gyan, Brahmana, & Karim (2017) prove that leverage have impact on performance. Hasan & Ali (2015), Meyer & Ujah (2017), Cheng, Chan, & Leung (2018), Memarista & Gestanti (2018), also Al-Surmi, Cao, & Duan (2019) stated that marketing have effect on performance.…”

Section: Hypotheses Developmentmentioning

confidence: 94%

“…ROA is calculate using Net Income per Total Asset. Second, leverage (Lev) as variable independent that measure using formula Total Debt per Total Asset (Gyan, Brahmana, & Karim, 2017). Third, marketing expenditure (ME) that calculated by using logarithm natural of marketing expenses (Fischer & Himme, 2016) tested as mediating and moderating variables on the effect of Leverage on ROA.…”

Section: Method Data and Analysismentioning

confidence: 99%

“…Second, the previous research result had not specifically tested whether marketing expenses mediating the relations between debt levels to performance. Previous prove that leverage have impact on marketing expense (Fischer & Himme, 2016) and financial performance (Gyan, Brahmana, & Karim, 2017). Another study stated that marketing expenditures have effect on performance (Cheng, Chan, & Leung, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…Resources advantage theory of competition stated there is relation between resource, marketing, and performance (Hunt & Morgan, 2005). Resources based view stated that for a good manager important to aligning organizational strategic with business strategic (Gyan, Brahmana, & Karim, 2017). Having debt as funding resources, a manager should be invested optimally in marketing expenses for building brand as intangible assets.…”

Section: Introductionmentioning

confidence: 99%

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Testing marketing expenses role on the relation between leverage and performance

Setyawati

Ramadhanti

2019

Jurnal Keuangan Dan Perbankan

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Marketing expenses usually one of the most important cost for the companies, but still few research in finance discussing about this. Previous study still inconsistent about the role of marketing expenses as moderator or mediator between the effects of leverage on financial performance. This research intended to empirically test on that subject. This research is using 1792 panel financial report data taken from 256 companies listed in Indonesian Stock Exchange during 2010-2016. There are three main variables in this research: performance that measures using returns on assets (ROA), marketing expenses is measures using natural logarithm of marketing expenses. Leverage is calculated using total debt per total asset. Data is analyzed using panel data regression. The results shows that marketing expense is a moderator but not mediator variable in the effect of leverage on financial performance. Marketing expense moderates negatively the relation between financial leverage on ROA. This is consistent with strategic management using Resources Advantage Theory and Du Pont Business Model. AbstrakBeban pemasaran biasanya adalah biaya yang paling penting bagi perusahaan, namun masih sedikit riset di bidang keuangan yang membahas tentang hal ini. Beberapa penelitian empiris sebelumnya memang telah menguji beban pemasaran dan kaitannya dengan leverage serta kinerja keuangan perusahaan, namun demikian belum konsisten hasilnya sebagai variabel pemoderasi atau pemediasi. Penelitian ini bermaksud mengkonfirmasi peranan beban pemasaran tersebut. Sampel yang digunakan dalam studi ini adalah 1792 data panel dari Laporan Keuangan 256 perusahaan yang terdaftar di Bursa Efek Indonesia selama periode 2010-2016. Ada tiga variabel utama dalam penelitian ini, yaitu kinerja diukur dengan tingkat pengembalian aset (return on assets atau ROA), beban pemasaran diukur dengan logaritma natural dari beban pemasaran, serta leverage keuangan yang diukur dengan total utang dibagi dengan total aset. Sampel selanjutnya dianalisis dengan regresi data panel. Hasilnya menunjukkan bahwa beban pemasaran merupakan variabel pemoderasi, bukan pemediasi, dalam hubungan leverage dengan kinerja keuangan. Beban pemasaran memoderasi negatif pengaruh leverage keuangan terhadap ROA. Hasil ini konsisten dengan manajemen strategi menggunakan Resources Advantage Theory dan Du Pont Business Model. How to Cite: Setyawati, S. M., & Ramadhanti, W. (2019). Testing marketing expenses role on the relation between leverage and performance. Jurnal Keuangan dan Perbankan, 23(3), 469-478. https://doi.| 470 | 1.

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Section: Discussionsupporting

confidence: 72%

Section: Hypotheses Developmentmentioning

confidence: 94%

Section: Method Data and Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Testing marketing expenses role on the relation between leverage and performance

Setyawati

Ramadhanti

2019

Jurnal Keuangan Dan Perbankan

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Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries

Akhter

Hassan

2023

Corp Soc Responsibility Env

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This study analyzes how corporate governance affects financial performance and explores the role of corporate social responsibility as a mediator for 495 firms located in emerging economies in BRICS countries, including Brazil, Russia, India, China, and South Africa from 2011 to 2021. This study evaluates the impact of various board characteristics such as board size, board independence, and gender diversity, as well as ownership structure elements such as family, foreign, and institutional shareholding, on firm performance in BRICS countries. This study uses a generalized method of moments (GMM) methodology to examine the relationship between corporate governance, corporate social responsibility (CSR), and firm performance. The results reveal that board attributes including size, independence, and gender diversity positively influence firm performance. All three components of ownership structure, family, foreign, and institutional shareholdings, positively affect firm performance. CSR partially mediates the positive relationship between corporate governance and firm performance. This study contributes to the literature by adding CSR as a mediating variable in the relationship between corporate governance and firm performance in BRICS countries. These findings suggest that managers must understand that effective corporate governance mechanisms are essential for better performance and should align their interests with firms' objectives. The mediation effect of CSR implies that policymakers should consider CSR as an additive tool to enhance firm performance rather than as an additional expenditure.

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Analysis of the Causal Relationship Among Diversification Strategies, Financial Performance and Market Values by the Three-Stage Least Squares (3SLS)

Lin

Wang

Chen

2021

Innovative Mobile and Internet Services in Ubiquitous Computing

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Diversification strategy, efficiency, and firm performance: Insight from emerging market

Cited by 41 publications

References 46 publications

Testing marketing expenses role on the relation between leverage and performance

Testing marketing expenses role on the relation between leverage and performance

Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries

Analysis of the Causal Relationship Among Diversification Strategies, Financial Performance and Market Values by the Three-Stage Least Squares (3SLS)

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