Non-financial Value Drivers: Case of Latvian Banks

Titko, Jeļena; Shina, Inga

doi:10.1016/j.proeng.2017.01.095

Cited by 7 publications

(10 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…A great number of research efforts are already dispensed with in evaluating the relationship between CG and firms’ financial performance to showcase the level to which the character has informed the wealth of shareholders (Beaver et al, 2005; Lo & Sheu, 2007). However, Titko and Shina (2017) have shown that financial performance can be improved through non-financial measures of enhanced employees’ achievement and customer fulfilment, improved firm’s reputation and sustainability. Additionally, Larsen and Tan (2015) and Śledzik (2013) confirm that reputation, employee satisfaction and turnover, staff know-how, customer devotion and novel potentials are the NFP indicators of a firm.…”

Section: Corporate Governance and Non-financial Performancementioning

confidence: 99%

“…Even though Lo and Sheu (2007) and Beaver, McNichols, and Rhie (2005) assert that several research efforts are involved with examining the relationship between CG and firm financial performance, Titko and Shina (2017) opine that financial performance can be enhanced through non-financial measures of enhanced employees’ achievement and customer fulfilment, improved firm’s reputation and sustainability (Mühlbacher, Siebenaler, & Würflingsdobler, 2016). However, Bello (2016) informs that in Nigeria, there is no significant emphasis on the eloquent and concrete evaluations of the occurrence of CG, even though, the latter is consciously recognised in the emerging and developed climes based on the reformations made in their societies.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Corporate Governance and Non-financial Performance of Medium-sized Firms in Nigeria: A CB-SEM Approach

Adedeji

Uzir

Rahman

et al. 2019

Indian Journal of Corporate Governance

View full text Add to dashboard Cite

This study investigates the perceptions of firm executives with respect to the extent of the influence of corporate governance (CG) practices on the non-financial performance (NFP) of medium-sized firms in Nigeria. The theoretical support for the research is from the stakeholder and agency theories. The cross-sectional survey and the cluster and stratified probability proportionate sampling methods are adopted, while the data collection is through a structured questionnaire that covers four CG indicators of board size, director’s qualification, ownership structure and board audit committee. The co-variance-based structural equation modelling (CB-SEM) technique ensures the analysis of the data collected. The result indicates that CG has significant positive effect on firms’ NFP. This outcome supports the urgent need for the development and execution of CG code of ethics for the non-listed firms alongside a regulatory agency for ensuring monitoring and compliance. The drawbacks are inclusive of the measure of variables on linear relationship basis and non-adoption of the longitudinal approach for the study. Future studies need to look at the usage of the intervening variables which, can further aid in evaluating the relationships of the research variables and their indirect and total effects.

show abstract

Section: Corporate Governance and Non-financial Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Corporate Governance and Non-financial Performance of Medium-sized Firms in Nigeria: A CB-SEM Approach

Adedeji

Uzir

Rahman

et al. 2019

Indian Journal of Corporate Governance

View full text Add to dashboard Cite

show abstract

“…This emphasis on financial and quantitative value creation demonstrates the companies' focus on shareholders and investors as primary stakeholders to the exclusion of other stakeholders (Adams 2014;Barnabe et al 2019;Freudenreich et al 2019;Grassman et al 2019;Śledzik 2013) Thirdly, companies acknowledge the value they create for customers in the products and services they offer (n = 84 occurrences linked to value creation), supporting the literature that emphasises value to customers as quantitative in nature (Bowman & Ambrosini 2000;Freudenreich et al 2019;Porter 1980;Sheveleva 2018;Śledzik 2013;Titko & Shina 2017). Omitted from the integrated reports is the acknowledgement that value creation to customers also includes qualitative values, such as loyalty (n = 0 linked to value creation) and customer retention (n = 0 linked to value creation) (Bowman & Ambrosini 2000;Dalbøl & Dalbøl 2011;Titko & Shina 2017). This qualitative focus on products and services is demonstrated by African Oxygen (Afrox) (2019:12) in their Integrated Report, where they state: 'Value creation at Afrox is the sustainable and effective delivery of products and services to add value for its customers in a profitable manner'.…”

Section: Findings and Discussionmentioning

confidence: 58%

“…Value to customers is often expressed as providing goods and services at affordable prices and better resource allocation to reduce related costs (Freudenreich et al 2019). The qualitative value related to customers, such as customer satisfaction and customer loyalty, is not addressed in extant value-creation literature except for linking value back to the organisation as increased profits and cash flows (Dalbøl & Dalbøl 2011;Śledzik 2013;Titko & Shina 2017). The emotional value created (how customers feel) is either not recognised by management or not considered to be relevant to purposes of reporting.…”

Section: Value Creation For Different Stakeholdersmentioning

confidence: 99%

“…Similarly, the value created for employees, in the form of human capital, is often reflected in company reports and literature with quantitative measures, such as the number of hours worked, financial benefits received, rewards schemes, and education provided (Gokten & Gokten 2017;Śledzik 2013;Sunder 2017;Titko & Shina 2017). The qualitative value an organisation creates for employees, such as quality leadership, low employee turnover, staff morale, employeedriven innovation, institutional knowledge, fair staff policies, productivity, skills level and capabilities are recognised in the human-capital literature only.…”

Section: Value Creation For Different Stakeholdersmentioning

confidence: 99%

See 1 more Smart Citation

Balancing quantitative and qualitative value-creation reporting

Crous

Wyk

2021

South African Journal of Economic and Management Sciences

View full text Add to dashboard Cite

Method: The demand for a balanced disclosure of quantitative and qualitative value creation in an organisation and for its stakeholders has increased in recent years.Aim: Therefore, this study focused on the disclosure of 97 companies listed on the Johannesburg Stock Exchange over a period of five years (2015–2019).Method: A three-phased content anlaysis was followed.Results: The researchers found that value-creation disclosures are mostly concerned with quantitative value creation, and that they focus on value concepts, such as returns to investors, cash flow, increase in employee numbers, and benefits to employees. Some companies have progressed in their integrated reporting practices and now include a reference to value creation by balancing the different forms of capital. However, their reports still do not include concrete statements or definitions about what value creation is considered to be; neither do they disclose qualitative value-creation concepts.Conclusion: The authors thus conclude that imbalanced reporting skewed towards quantitative value concepts persists.

show abstract

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

Adedeji

San

Uzir

et al. 2020

View full text Add to dashboard Cite

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

show abstract

Non-financial Value Drivers: Case of Latvian Banks

Cited by 7 publications

References 20 publications

Corporate Governance and Non-financial Performance of Medium-sized Firms in Nigeria: A CB-SEM Approach

Corporate Governance and Non-financial Performance of Medium-sized Firms in Nigeria: A CB-SEM Approach

Balancing quantitative and qualitative value-creation reporting

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

Contact Info

Product

Resources

About