Impact of global economic crisis on firm growth

Perić, Marko; Vitezić, Vanja

doi:10.1007/s11187-015-9671-z

Cited by 75 publications

(70 citation statements)

References 71 publications

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“…Shareholder-related CSR can contribute to the two aspects of organizational resilience, namely long-term growth and low financial volatility. As for low financial volatility, a sound financial structure embodied in shareholder-related CSR can not only act as a shock buffer or absorber during crises to reduce negative impacts on profitability [61], but also provide access to financial resources to support normal operations and maintain stable performance [4,48]. The company with a sound financial structure (e.g., a low debt ratio) is likely to have much unused borrowing power and deliver decent credit to the capital market [62], which allows it to obtain the necessary funds at favorable financing costs to support its survival and development strategies during crises [26].…”

Section: Shareholder-related Csr and Organizational Resiliencementioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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Prior work on corporate social responsibility (CSR) has focused mainly on its effects on the short-term performance of firms from developed countries. In this article, we shed light on its effects on organizational resilience, which is defined as the firm's ability to positively cope with environmental turbulence, and operationalized by long-term, improved sales growth and financial volatility. In line with this operationalization, we adopt CSR's performance-enhancing and performance-insuring mechanisms to disentangle the relationship between CSR and organizational resilience. Furthermore, we divide CSR into five dimensions, namely shareholder, employee, business, society and environment-related CSR, and respectively examine their impacts on organizational resilience. The empirical study on a large sample of public firms in China from 2010 to 2017 shows that CSR as a whole significantly increases the firms' long-term growth and reduces their financial volatility. As for the five specific dimensions, they all have a significant negative effect on financial volatility, and the employee, business, environment-related CSR are positively associated with long-term growth. Yet, the empirical results did not indicate significant associations between shareholder and society-related CSR and firms' long-term growth. This study first explores the impacts of CSR's different dimensions on organizational resilience. Also, we contribute to enriching the literature on CSR by examining the long-term performance-insuring effect of CSR with a quantitative analysis of emerging markets. Finally, we discuss some important managerial implications, as well as promising directions for future research.2 of 23 conditions, unestablished industrial structures, and the intense, chaotic competition brought by rapid development, Chinese enterprises are likely to face more changes and uncertainties in their business environment, which makes them more vulnerable than those from developed countries. Second, as the concern about CSR in China comes far later than that in developed countries, the effect of Chinese CSR on organizational resilience may be different. The Kinder, Lydenberg, and Domini (KLD) database, for example, began to internationally provide ratings of corporate social performance in 1991. While, the first official research report on Chinese CSR was released in 2009, and then Chinese listed companies were required to issue their annual CSR reports. In line with this, we aim at providing some new insights of CSR and its effects on organizational resilience with evidence from emerging markets.In doing so, we first clarify the conceptualization and operationalization of organizational resilience. Defined as the ability of an organization to respond positively to environmental changes, organizational resilience is a latent, unobservable construct usually measured by its outcomes [6]. The most desired outcome of organizational resilience recognized in extant literature is a firm's persistent superior performance in the changing business en...

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Section: Shareholder-related Csr and Organizational Resiliencementioning

confidence: 99%

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Wei

et al. 2019

Sustainability

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“…The extensive literature on firm growth beginning with Gibrat's Law in 1931 (see Coad 2009;Peric and Vitezic 2016) offers an understanding of firm heterogeneity arising from several sources including firm-specific characteristics (e.g. firm size, age and ownership) and firm strategy variables (e.g.…”

Section: Introductionmentioning

confidence: 99%

Drivers of SME performance: a holistic and multivariate approach

2016

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To examine the drivers of small-and medium-sized enterprise (SME) growth, we adopt a holistic multivariate modelling approach, integrating macroeconomic determinants with the internal (firm characteristics and firm strategy) drivers more commonly investigated in firm growth studies. Utilising such an extended set of variables addresses a gap in the extant firm growth literature in relation to external growth factors, offering novel insights on the seeming randomness of firm growth. Our system generalised method of moments estimation results indicate that the macroeconomic environment influences firm growth both directly and indirectly. Based on the study of manufacturing SME growth in Ireland, our findings provide evidence on the integrated effects of macroeconomic conditions, firm characteristics and firm strategy for SME growth. They also highlight, from a theoretical perspective, the need to acknowledge the multidimensional nature of SME growth.

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“…The purpose of literature is to identify some variable important and consistent to study with said variable of current study. Firm Size and Firm Age are among those common variables that are used in previous research to correlate with firm growth (Peric, M., & Vitezic, V. 2016;Callen, J. L., & Chy, M. 2016). The current study at hand is based on Gibrat law, according to which the Firm Size is independent to Firm growth (Hart, 1962).…”

Section: Literature Reviewmentioning

confidence: 99%

Firm Size, Age, Leverage and Growth Opportunities: An initial inquiry by Pakistan

Hussain¹,

Waseer²

2018

ASSRJ

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It is desired by all organizations to grow and sustain the factors of growth opportunities. This study is carried out to measure significant factors towards firm growth opportunities by using the data of Pakistani Firms. There were dissimilar results found in literature about selected variables with firm growth opportunities. This study is an attempt to support literature about significant factors towards growth opportunities by using the data of second largest Pakistan Industry (Sugar Sector). Pakistan Stock Exchange (PSX) listed firms have been observed as representative of overall sugar industry for the period of 1999-2015. Growth opportunities was observed with firm size, age, leverage, firm assets, industry sales, cash flows and market share by developing multiple linear regression model. It is found that growth opportunities for PSX listed firms are independent of its size, age and industry sales and all other explanatory variables are positively related with growth opportunities. This study supports literature that PSX listed firms show statistically significant and theoretically same results for all selected variables except firm size, age and industry sales.

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Impact of global economic crisis on firm growth

Cited by 75 publications

References 71 publications

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

What Dimension of CSR Matters to Organizational Resilience? Evidence from China

Drivers of SME performance: a holistic and multivariate approach

Firm Size, Age, Leverage and Growth Opportunities: An initial inquiry by Pakistan

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