Assessment of returns from Zero impact of strategic strategy on firm’s performance
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Nov 14, 2015
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Abstract
Critics argue sharply and blamed top management inappropriately for utilizing corporate strategic philanthropy as a tool to redeem their fallen image instead of the interest of the company. Nevertheless, there is a school of thought that believes that strategic philanthropy model have no impacts on the corporate performance especially in the recession period. This study focuses on Measurement of the impact of strategic philanthropy behavior on profitability measures: ROA, ROE. This study also measure Gross margin and Turnover model of strategic philanthropy in the selected firms. This research begins with audited consolidated financial statement of 59 listed companies comprising of 471 subsidiaries that were operating in the four years under study to obtain the secondary data. Initial approach of Statistical analysis method using IBM SPSS version 21 is used to analyze the data obtained from the secondary source. The research findings support the null hypothesis that there is no evidence to support that strategic philanthropy have impact on firms’ performance. Based on the research findings, managerial implications and directions for future research are discussed.
Keywords: Return on assets (ROA), Return on equity (ROE), Gross margin, Turnover, Subsidiaries
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Creswell, J. W. (1994).Research design: Qualitative and quantitative approaches. Thousands Oaks, CA: sage, 42
Eccles, R. (1991). The performance measurennent manifesto. Harvard Business Review, January-February, 131-137.
Feldstein, M. S. (1971). Hospital cost inflation: A study of nonprofit price dynamics. The American Economic Review, 853-872.
Ferguson, T., D., Deephouse, D., L., & Ferguson, W., L. (2000). Do strategic groups differ in Reputation?.Strategic management Journal, 21(12), 1195-1214.
GardBerg, N, A., & Fombrun, C., J. (2006). Corporate Citizenship: creating Intangible Assets Across Institutional Environments. Academy of management Review, 31(2), 329-346.
Greenfield, T. K. (2000). Ways of measuring drinking patterns and the difference they make: experience with graduated frequencies. Journal of substance abuse, 12(1), 33-49.
Griffen, V. (2004). Globalization and Reinventing the Politics of the Women‟ s Movement. The Future of Women’s Rights: Global visions and strategies.
Henderson, K. (2002). Alternative Service Delivery in Developing countries: NGOs and other Non-profits in Urban Areas. Public Organization Review: A Global Journal, 2, 99-116
Hume, M., Mort, G. S., Liesch, P. W., & Winzar, H. (2006). Understanding service experience in non-profit performing arts: implications for operations and service management. Journal of Operations Management, 24(4), 304-324.
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: translating strategy into action. Harvard Business Press.
Keeler, E. B., Melnick, G., & Zwanziger, J. (1999). The changing effects of competition on non-profit and for-profit hospital pricing behavior. Journal of Health Economics, 18(1), 69-86.
Kerlinger, F.N. (1979). Behavioral research: A conceptual approach. Harcourt School.
Kornai, J. (1979). Resource-constrained versus demand-constrained systems.Econometrica: Journal of the Econometric Society, 801-819.
Krathwohl, D.R. (1988). How to prepare a research proposal:
Guidelines for funding and dissertations in the social and behavioral sciences. Syracuse, NY: Syracuse University Press
Krishnan, R., A., Joshi, S., & Krishnan, H. (2004). The influence of Mergers on firms product-Mix strategies.Strategic management Journal, 25(6), 587-611
Leedy, P. D., & Ormrod, J. E. (2005). Practical research. Planning and design, 8.
Leisinger, K, M. (2007).Corporate Philanthropy: The “Top of the pyramid”.Business and Society Review, 112(3), 315-342.
McGregor‐Lowndes, M., & Ryan, C. (2009). Reducing the Compliance Burden of Non‐profit Organisations: Cutting Red Tape. Australian Journal of Public Administration, 68(1), 21-38.
Pauly, M, V. (1987). Nonprofit Firms in medical markets, The American Economic Review, 77(2), 257-262.
Pavelin, S., & Porter, L. A. (2008). The corporate social performance content of innovation in the UK. Journal of Business Ethics, 80(4), 711-725.
Porter, M, E., & Kramer, M, R. (2011).The big idea: Creating Shared Value. Harvard Business Review. 89(1/2) 62-77
Schoemaker, P., J., & Amit, R. (1993). Investment in strategic assets: Industry and firm-level perspectives. Wharton School, SEI Center for Advanced Studies in Management.
Shavelson, R., J. (1988). Statistical reasoning for the behavioral sciences.
Smus, T., R. (2011).Philanthropy as a strategy of value based management. Economic and Environmental studies, 11(2), 189-205.
Tabachnick, B. G., & Fidell, L. S. (2007). Experimental designs using ANOVA. Thomson/Brooks/Cole.
Wang, J. J., Li, Y. C., & Choi, K. S. (2008). Gurney flap—Lift enhancement, mechanisms and applications. Progress in Aerospace Sciences, 44(1), 22-47.
Wiersma, W. (1995). Research methods in education: An
introduction (Sixth edition). Boston: Allyn and Bacon, 404
Wilkinson, A. M. (1991). The scientist’s handbook for writing papers and dissertations. Englewood Cliffs, NJ: Prentice Hall. 46