Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies
Fintech companies are relatively young and operate in a rapidly evolving and ever-changing industry, which makes it important to understand how different factors, including shareholder presence in management roles, affect their performance. This study investigates the impact of shareholder presence...
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2024-03-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/12/3/54 |
| _version_ | 1797239425642528768 |
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| author | Ramona Rupeika-Apoga Stefan Wendt Victoria Geyfman |
| author_facet | Ramona Rupeika-Apoga Stefan Wendt Victoria Geyfman |
| author_sort | Ramona Rupeika-Apoga |
| collection | DOAJ |
| description | Fintech companies are relatively young and operate in a rapidly evolving and ever-changing industry, which makes it important to understand how different factors, including shareholder presence in management roles, affect their performance. This study investigates the impact of shareholder presence in director and manager positions on the financial performance of Latvian fintechs. Our investigation centers on essential financial ratios, including Return on Assets, Return on Equity, Profit Margin, Liquidity Ratio, Current Ratio, and Solvency Ratio. Our findings suggest that the presence of shareholders in director and manager roles does not significantly affect the financial performance of fintech companies. Although the statistical analysis did not yield significant results, it is important to consider additional insights garnered from Cliff’s Delta effect sizes. Specifically, despite the lack of statistical significance, practical significance indicates that fintech companies in which directors and managers are shareholders show slightly better performance than other fintech companies. Beyond shedding light on the intricacies of corporate governance in the fintech sector, this research serves as a valuable resource for investors, stakeholders, and fellow researchers seeking to understand the impact of shareholder presence in director and manager roles on the financial performance of fintechs. |
| first_indexed | 2024-04-24T17:51:20Z |
| format | Article |
| id | doaj.art-1af8207a9cb54255b7620ab117cce548 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-04-24T17:51:20Z |
| publishDate | 2024-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-1af8207a9cb54255b7620ab117cce5482024-03-27T14:03:07ZengMDPI AGRisks2227-90912024-03-011235410.3390/risks12030054Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech CompaniesRamona Rupeika-Apoga0Stefan Wendt1Victoria Geyfman2Faculty of Business, Management and Economics, University of Latvia, LV-1586 Riga, LatviaDepartment of Business, Bifröst University, 311 Borgarnes, IcelandDepartment of Finance, Zeigler College of Business, Bloomsburg University of Pennsylvania, 400 East Second Street, Bloomsburg, PA 17815-1301, USAFintech companies are relatively young and operate in a rapidly evolving and ever-changing industry, which makes it important to understand how different factors, including shareholder presence in management roles, affect their performance. This study investigates the impact of shareholder presence in director and manager positions on the financial performance of Latvian fintechs. Our investigation centers on essential financial ratios, including Return on Assets, Return on Equity, Profit Margin, Liquidity Ratio, Current Ratio, and Solvency Ratio. Our findings suggest that the presence of shareholders in director and manager roles does not significantly affect the financial performance of fintech companies. Although the statistical analysis did not yield significant results, it is important to consider additional insights garnered from Cliff’s Delta effect sizes. Specifically, despite the lack of statistical significance, practical significance indicates that fintech companies in which directors and managers are shareholders show slightly better performance than other fintech companies. Beyond shedding light on the intricacies of corporate governance in the fintech sector, this research serves as a valuable resource for investors, stakeholders, and fellow researchers seeking to understand the impact of shareholder presence in director and manager roles on the financial performance of fintechs.https://www.mdpi.com/2227-9091/12/3/54shareholdersdirectorsmanagementfinancial performancefintechconflict of interest |
| spellingShingle | Ramona Rupeika-Apoga Stefan Wendt Victoria Geyfman Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies Risks shareholders directors management financial performance fintech conflict of interest |
| title | Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies |
| title_full | Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies |
| title_fullStr | Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies |
| title_full_unstemmed | Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies |
| title_short | Shareholders in the Driver’s Seat: Unraveling the Impact on Financial Performance in Latvian Fintech Companies |
| title_sort | shareholders in the driver s seat unraveling the impact on financial performance in latvian fintech companies |
| topic | shareholders directors management financial performance fintech conflict of interest |
| url | https://www.mdpi.com/2227-9091/12/3/54 |
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