Operational Compliance Levers, Environmental Performance, and Firm Performance Under Cap and Trade Regulation

Kroes, James R.; Subramanian, Ravi; Subramanyam, Ramanath

doi:10.1287/msom.1110.0357

Cited by 91 publications

(50 citation statements)

References 52 publications

(49 reference statements)

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“…Tobin's q, which is the ratio of the market value of a firm to the replacement value of its assets, has been employed widely as an indicator of firm financial performance (Lindenberg & Ross, 1981;Dowell et al 2000;Hennessy, 2004;Kroes et al, 2012). A higher Tobin's q value represents superior firm financial performance.…”

Section: Methodsmentioning

confidence: 99%

Cash flow management and manufacturing firm financial performance: A longitudinal perspective

Kroes

Manikas

2014

International Journal of Production Economics

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A firm's cash flow policies, which manage working capital in the form of cash receivables from customers, inventory holdings, and cash payments to suppliers, are inexorably linked to the firm's operations. Building on earlier research, this study: (i) extends prior studies by examining the relationships between changes in cash flow measures and changes in firm financial performance using a longitudinal sample of firm data; and (ii) investigates the direction of the relationship between quarterly changes in cash flow positions and firm financial performance. This study is conducted using the Generalized Estimating Equations (GEE) methodology to analyze a longitudinal sample of eight quarters of cash flow and financial performance data from 1,233 manufacturing firms. The analyses find that changes in the widely used Cash Conversion Cycle (CCC) metric do not relate to changes in firm performance; however, changes in the less used Operating Cash Cycle (OCC) metric are found to be significantly associated with changes in Tobin's q. This examination of how changes in specific cash flow measures relate to changes in Tobin's q shows that both reductions in Accounts Receivables (measured as Days of Sales Outstanding [DSO]) and reductions in Inventory (measured as Days of Inventory Outstanding [DIO]) relate to firm financial performance improvements that persist for several quarters. Endogeneity tests of whether a firm's cash flow management strategy leads to changes in firm performance or if the cash flow strategy is a byproduct of firm performance suggest that reductions in DSO lead to improved firm financial performance.

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Section: Methodsmentioning

confidence: 99%

Cash flow management and manufacturing firm financial performance: A longitudinal perspective

Kroes

Manikas

2014

International Journal of Production Economics

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“…Song et al (2015) use a DID model to show that a dedicated queuing system reduces waiting time relative to a pooled queuing system. On issues related to operations strategy, empirical researchers have examined how various strategies affect operational performance (see Stratman 2007, Lapré and Scudder 2004, Tsikriktsis 2007, Rawley and Simcoe 2010, Kroes et al 2012. In particular, Rawley and Simcoe (2010) investigate whether firm diversification leads to increased outsourcing.…”

Section: Miscellaneous Topics (Online Appendix Table A6)mentioning

confidence: 99%

OM Forum—Causal Inference Models in Operations Management

Lim

Reza

et al. 2017

M&SOM

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Abstract. Operations management (OM) researchers have traditionally focused on developing normative mathematical models that prescribe what managers and firms should do. Recently, there has been increased interest in understanding what managers and firms actually do and the factors that drive these decisions. To advance this understanding, empirical investigation using causal inference models is critical. However, in many contexts, the ability to obtain causal inferences is fraught with the challenges of endogeneity and selection bias. This paper describes five empirical tools that have been widely used in economics to address these challenges and how they can be adopted by OM researchers. We also present an example that illustrates how the various attributes of big data-variety, velocity, and volume-can be useful in addressing the endogeneity bias.

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“…where f l pXq denotes the objective functions in the dimension l. According to Equation (25), the crowding distance matrix can be indicated as:…”

Section: Selecting the Optimal Particlesmentioning

confidence: 99%

The Design of a Sustainable Location-Routing-Inventory Model Considering Consumer Environmental Behavior

Tang

Jiang

2016

Sustainability

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Our aim is to design a sustainable supply chain (SSC) network, which takes into consideration consumer environmental behaviors (CEBs). CEBs not only affect consumers' demand for products with low carbon emissions, they also affect their willingness to pay premium prices for products with low carbon emissions. We incorporate CEBs into the SSC network model involving location, routing and inventory. Firstly, a multi-objective optimization model comprised of both the costs and the carbon emissions of a joint location-routing-inventory model is proposed and solved, using a multi-objective particle swarm optimization (MOPSO) algorithm. Then, a revenue function including CEBs is presented on the basis of a Pareto set of the trade-off between costs and carbon emissions. A computational experiment and sensitivity analysis are conducted, employing data from the China National Petroleum Corporation (CNPC). The results clearly indicate that our research can be applied to actual supply chain operations. In addition, some practical managerial insights for enterprises are offered.

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Operational Compliance Levers, Environmental Performance, and Firm Performance Under Cap and Trade Regulation

Cited by 91 publications

References 52 publications

Cash flow management and manufacturing firm financial performance: A longitudinal perspective

Cash flow management and manufacturing firm financial performance: A longitudinal perspective

OM Forum—Causal Inference Models in Operations Management

The Design of a Sustainable Location-Routing-Inventory Model Considering Consumer Environmental Behavior

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