Browsing by Author "Owusu-Agyei, Samuel"

Now showing 1 - 7 of 7
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    Capital structure revisited. Do crisis and competition matter in a Keiretsu corporate structure?
    (Wiley, 2020-07-09) Danso, Albert; Fosu, Samuel; Owusu-Agyei, Samuel; Ntim, Collins G.; Adegbite, Emmanuel
    We investigate firm-level determinants of capital structure using a large sample of 4,284 Japanese firms over a nineteen-year period (i.e., over 61,000 firm-year observations), a hitherto less examined sample for this purpose. We conduct our analysis and interpret our findings predominantly within the pecking order, the trade-off and the agency theoretical frameworks. We uncover three new findings. First, our evidence indicates that insights derived from the extant literature on capital structure are cross-national and are applicable in the context of Japan, despite the unique characteristics of Japanese firms. Second, financial crisis significantly impacts the relationship between leverage and firm-level determinants, particularly accentuating the effect of asset tangibility and growth. Third, product market competition significantly impacts the observed relationship between firm-level determinants and leverage. Our results are robust, controlling for the joint effects of competition and crisis.
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    CEO reputation, quality management and environmental innovation: the roles of stakeholder pressure and resource commitment
    (Wiley, 2020-04-13) Konadu, Renata; Owusu-Agyei, Samuel; Lartey, Theophilus; Danso, Albert; Adomako, Samuel; Amankwah-Amoah, Joseph
    In this paper, we examine how and when chief executive offers’ (CEOs’) reputation enhances environmental innovation by considering quality management as a mediating mechanism of this relationship. In addition, we introduce stakeholder pressures (primary and secondary stakeholder pressures) as important contingencies of the relationship between CEOs’ reputation and quality management. Moreover, we test the moderating role of resource commitment on the quality management-environmental innovation relationship. We test our research model using data from a manufacturing industry sample of 217 firms from Ghana. We find that quality management mediates the relationship between reputation and environmental innovation. Moreover, the relationship between CEOs’ reputation and quality management is amplified when levels of both primary and secondary stakeholder pressures are greater. Finally, our findings show that the effect of quality management on environmental innovation is enhanced when resource commitment is greater. Implications for theory and practice are discussed.
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    CEOs' market sentiment and corporate innovation: the role of financial uncertainty, competition and capital intensity
    (Elsevier, 2020-09-14) Lartey, Theophilus; Danso, Albert; Owusu-Agyei, Samuel
    Using panel data of 4,225 firms headquartered in the US, we examine the effects of CEOs’ market sentiment on corporate innovation capacity. We also examine the extent to which sentiment-innovation relation is moderated by: (i) financial uncertainty/vulnerability; (ii) competition; (iii) firm size and growth prospects; (iv) capital intensity; and (v) operational complexity. The results indicate that, both across and within firms, innovation declines when CEOs perceive market conditions to be good (high sentiment periods). In addition, the negative sentiment-innovation relation observed during high sentiment periods is enhanced when firms are large, and have high growth prospects and greater operational complexities. Nevertheless, firm innovation increases significantly during high sentiment periods when firms anticipate uncertainties about future cash flows, when competition is intense, and when capital intensity creates extreme entry barriers. Our core explanations hold even after accounting for endogeneity and using alternative measures of firm innovation.
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    Corporate governance pillars and business sustainability: does stakeholder engagement matter?
    (Springer, 2021-02-22) Konadu, Renata; Ahinful, Gabriel Sam; Owusu-Agyei, Samuel
    This study extends the existing work on corporate governance and business sustainability by exploring corporate governance pillars comprising board functions, structure, strategy, compensation and shareholder rights utilizing data from listed S&P 500 firms. Using panel fixed effects and two-step GMM, we discovered that environmental, social and financial sustainability dimensions of the business sustainability are impacted positively by board functions and board structure. Our findings further reveal that low stakeholder engagement adversely impacts companies’ bottom-line performance. The results are robust to outliers, model specifications, statistical estimations and alternative measures of performance. Most importantly, the inferences from the moderating result suggest stakeholder engagement as a strategic approach to improve performance. The study is relevant for business sustainability practitioners and policy makers in advancing principles of corporate governance to promote enhanced performance.
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    Environmental sustainability orientation and performance of family and nonfamily firms
    (Wiley, 2019-04-01) Adomako, Samuel; Amankwah-Amoah, J.; Danso, Albert; Konadu, R.; Owusu-Agyei, Samuel
    Despite the growing research evidence on the effect of environmental sustainability orientation (ESO) on firm outcomes, contingent factors that may influence the strength of this relationship have received little scholarly attention. In this study, we use insights from the literature on ESO and family business to introduce family status and firm age as moderators in the ESO-performance linkage. Using time-lagged data from 253 small and medium-sized enterprises (SMEs) in Ghana, we found the impact of ESO on firm performance is amplified for nonfamily firms but not significant for family firms. Our evidence suggests it is stronger among older firms than younger ones. Implications and directions for future research are discussed.
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    Environmental sustainability orientation, competitive strategy and financial performance
    (Wiley, 2019-02-18) Danso, Albert; Adomako, Samuel; Amankwah-Amoah, J.; Owusu-Agyei, Samuel; Konadu, R.
    Extant research has established that environmental sustainability orientation (ESO) has a positive influence on performance outcomes. Nevertheless, several contingencies tend to affect the strength of this relationship. In this study, we draw on natural resource-based theory to introduce competitive strategies as moderators in the ESO-performance nexus. Using time-lagged data obtained from 269 firms in Ghana, this study finds that firms pursuing the differentiation strategy can positively boost performance outcomes with ESO than without differentiation strategy. We also find that firms can use the low-cost or the integrated strategy to get higher impact on performance with ESO respectively. Based on the results, firms in Ghana do not need differentiation strategy in order to boost the effect of ESO on financial performance. Theoretical and practical implications are discussed.
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    Leverage and firm investment: the role of information asymmetry and growth
    (Emerald, 2018-03-04) Danso, Albert; Lartey, Theophilus; Fosu, Samuel; Owusu-Agyei, Samuel; Uddin, Moshfique
    This paper demonstrates how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth. The paper relies on data from 2403 Indian firms during the period 1995–2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques. Drawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms. This paper provides fresh evidence on the leverage-investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage-investment relationship is driven by the level of information asymmetry.