Reinsurance and technical liabilities as determinants of firm value and profitability: Evidence from Jordanian insurers with the mediating role of excess loss installments

This study aims to determine the impact of Debt To Equity Ratio (Der), Inventory Turn Over (Ito), and Current Ratio to Stock Returns with Return On Asset (ROA) s (Roa) as Intervening Variables. Population and Sample The population in this study are all food and beverage companies listed on the Indonesia Stock Exchange for the 2016-2020 period according to the classification of the Indonesia Capital Market Directory. The sampling method used is non-probability sampling with purposive sampling technique. Methods of data collection in this study using the method of study documentation and literature study of companies that will be used as samples are 14 food and beverage companies. In order to perform the inferential analysis of this research, the analytical tool used is Patial Least Square (PLS), which is SEM based on variance, with SmartPLS software. Based on the results of data analysis shows that: The results of the hypothesis H1 indicate that the Debt To Equity Ratio (DER), (X1) has a negative effect on stock returns. H2 shows that the inventory turnover (ITO) (X2) has a positive effect on stock returns. The results of the hypothesis H3 show that the current ratio (CR) (X3) has a negative effect on stock returns. The results of the hypothesis H4 show that the Debt To Equity Ratio (DER) (X4) has a negative effect on Return On Asset (ROA) s ROA (z) . The results of the hypothesis H5 show that the inventory turnover (ITO) (X5) has a negative effect on Return On Asset (ROA) s ROA (z). The results of the hypothesis H6 indicate that the current ratio (X6) has a negative effect on Return On Asset (ROA) s ROA (z). The results of the hypothesis H7 show that the Return On Asset (ROA) s (X7) has a negative effect on stock returns (Y) . The value of the P-Value obtained is 0.679 which is greater than 0.05. Based on the mediation analysis, it is stated that the moderating variable (Return On Asset (ROA) s) does not significantly reduce the effect of the Debt To Equity Ratio (der) on stock returns. And the moderating variable (Return On Asset (ROA) s) does not significantly have a decreasing effect between inventory turnover and stock returns. And the moderating variable (Return On Asset (ROA) s) does not significantly have a decreasing effect between the current ratio (CR) on stock returns.
 Keywords: Debt To Equity Ratio (Der), Inventory Turn Over (Ito),Dan Curent Ratio Return Saham Return On Asset (ROA) (Roa)

This study investigates the impact of dividend ratios on firms’ performance under the mediating and moderating role of agency cost and firm size. Firms’ performance is measured by the fundamental financial ratios, return on assets (ROA) and return on equity (ROE) ratios by taking the independent variable DPOR, DCR and FCFR with mediating Agency cost and moderator Firm Size. The study used secondary data for analysis. The descriptive statistics provide insights into the distribution of key financial variables based on 101 non-financial firms listed with Pakistan stock exchange for eight years period 2015 to 2022. The panel regression analysis explores the influence of various financial factors on Return on Assets (ROA), considering Firm Size (FS) as a moderating variable. To determine the appropriate model for interpretation, the Hausman Test was conducted. Both Fixed Effect (FE) and Random Effect (RE) models were estimated, and the Hausman Test was conducted to determine the appropriate model. The results of the Hausman test indicate that the Fixed Effect model is the most appropriate for analyzing ROA. To assess whether AC (Agency Cost) mediates the relationship between the dividend ratios and firms’ performance, the Sobel test has applied which shows the significant relationship between DPOR and firms performance. The panel regression results indicate that Free Cash Flow Ratio (FCFR) has the strongest positive impact on ROA. Dividend Payout Ratio (DPOR) also has a positive and significant effect on ROA. Firm Size (FS) positively influences ROA, Dividend Coverage Ratio (DCR) does not show a significant relationship with ROA. DCR and FS is statistically insignificant. The moderation analysis for ROE confirms that firm size weakens the positive influence of free cash flow, while its interactions with DPOR and DCR remain insignificant.

Islamic banks as a company still have a goal of profit, where profit is often used as a measure of the company's performance. One of the profit ratios is the return on assets (ROA) ratio. Then the ROA in the previous study was influenced by many factors, while in this study it was seen based on the net performance financing (NPF) ratio, financing to deposit ratio (FDR), and net return (NI). The purpose of the study was to determine the effect of the NPF ratio, FDR ratio, and NI ratio on the ROA ratio. The research population was Islamic banks listed on the Indonesia Stock Exchange (IDX), namely 4 companies with data from the first-fourth quarter of 2021 to the second quarter of 2024. Panel data regression data analysis techniques. The results of the study showed that simultaneously net performance financing (NPF), financing to deposit ratio (FDR), and net return (NI) were significant on the return on assets (ROA) ratio, but partially net performance financing (NPF) did not affect the return on assets (ROA) ratio while financing to deposit ratio (FDR) and net return (NI) were significant on the return on assets (ROA) ratio.

The objective of this study is to analyze the impact of investment on profitability of selected Nepalese commercial banks. This research employs a descriptive and causal comparative research design. Given the impracticality of including all banks, the study focuses on a selected sample of twenty banks, specifically NABIL bank limited and Standard Chartered bank limited, chosen through judgment sampling. Secondary data, including annual reports and various published sources has used for analysis. The research employs statistical tools such as arithmetic mean, standard deviation, coefficient of variation, correlation coefficient, and regression analysis to evaluate and interpret the data. The results indicate that higher NRB Balance and Investment on Security are positively associated with both return on assets (ROA) and return on equity (ROE), suggesting that banks with larger reserves and substantial investments in securities tend to achieve better profitability. Conversely, Loan and Advance to Customers show a strong positive correlation with ROA but a negative correlation with ROE, indicating that while increased lending boosts asset returns, it may reduce returns on equity and investment in securities. Regression analyses further illuminate these relationships. For ROA, Bank Size emerges as the most significant factor, with a strong positive impact, followed by NRB Balance and Loan and Advance to Customers, which also positively influence ROA. Investment on Security, although positively related, has a less pronounced effect.

The purpose of this study was to explore the key factors influencing cost efficiency in Nepalese commercial banks. By examining the impact of endogenous variables including bank size (S), return on assets (ROA), capital adequacy ratio (CAR), credit risk (CR), and net interest margin (NIM), this study explores the complex relationship between these variables and cost efficiency. Utilizing a balanced panel dataset spanning a decade from 2011/12 to 2020/21, the study employed descriptive and inferential analyses, along with econometric models such as pooled OLS (ordinary least squares), fixed effects regressions, and random effects regression techniques. Additionally, various statistical tests, including the variance inflation factor test, Hausman specification test, and the Breusch-Pagan test for homoscedasticity, were conducted to ensure the robustness of the models. The results found that return on assets (ROA) and capital adequacy ratio (CAR) exert a positive influence on cost efficiency, while the net interest margin (NIM) exhibits a negative impact. However, no significant relationship was found between bank size, credit risk, and cost efficiency. These results emphasize the importance for banks to prioritize the enhancement of their return on assets (ROA) and capital adequacy ratio (CAR) while maintaining an optimal net interest margin (NIM). The study offers valuable insights for bank management and policymakers, contributing to an improved understanding of cost efficiency in Nepal's commercial banks. By providing evidence-based recommendations, this research opens the path for the formation of strategies aimed at optimizing operational undertakings and fostering overall cost-efficiency within Nepalese banks.

<p><em>Previous studies have shown different results for the relationship between performance and tax evasion, both in terms of sign and significance. First, this paper examines the relationship between corporate performance, as measured by return on assets (ROA), and tax evasion, as measured by the effective tax rate (ETR). Based on a sample of 49 Tunisian listed companies from 2012 to 2018, this study uses fixed-effect regression. In a second step, this work adds an ROA square term to the model. This research examines whether the relationship between ROA and RET is a quadratic relationship with this completed model. The results show that the relationship between firm performance and tax evasion is negative and significant. The results support the theory of political power. The fixed-effects regression results provide the reasons for a non-linear relationship. This paper shows that the relationship between ROA and REE is a U-shaped relationship. This paper builds on previous research by examining the relationship between firm performance and tax evasion, and is a contribution to the literature and policy makers.  To my knowledge, there are no studies that focus on the association between tax evasion and firm performance as a variable of interest in Tunisia.</em></p>

This chapter focuses on the analysis of the determinants of financial performance (FP) of Portuguese wine firms. Unbalanced panel data were analyzed using fixed-effects regression. The sample consisted of 386 Portuguese wine firms, for the period 2014–2017. FP is the dependent variable of this study, having been measured through return on assets (ROA) using as explanatory variables debt-to-equity, net working capital, current ratio, days payable out-standing (DPO), and days receivables outstanding (DRO). The results show: (1) DRO, debt-to-equity and net working capital are the variables that best explain the FP measured by ROA; (2) Debt-to-equity and DRO have a negative relationship with ROA, whereas current ratio, working capital, and DPO have a positive relationship with profitability measured by ROA. The findings suggest that there are other qualitative elements in the wine sector, beyond numbers, that support the explanation of its performance. The way this industry is heavily controlled affects its success. Furthermore, factors such as the style of corporate governance and the lengthy production cycle can have a significant impact on its FP. it is strongly advised that qualitative approaches be employed in conjunction with quantitative research in future studies to obtain the most comprehensive and accurate results.

Purpose This study aims to investigate the non-linear relationship between green product innovation and accounting-based financial performance in emerging East Asian economies. Specifically, this research explores how green product innovation affects financial performance through both cost-saving and productivity improvement effects. Design/methodology/approach Return on assets (ROA) is used to measure accounting-based financial performance. Using DuPont analysis, the author decompose ROA into two components: return on sales (ROS) to capture the cost-saving effect and asset turnover (AT) to capture the productivity improvement effect. Fixed-effects regressions are applied to analyze panel data from 409 non-financial listed firms in emerging East Asia from 2015–2019. To ensure robustness, the author uses a two-step generalized method of moments estimator to address potential endogeneity issues. Findings The author demonstrates a significant U-shaped relationship between green product innovation and ROA, with an initial decline in ROA followed by a subsequent increase. Additionally, the author observe a linear positive correlation between green product innovation and ROS, while the relationship between green product innovation and AT is non-linear and U-shaped. The analysis reveals that green product innovation may initially decrease ROA due to lower productivity, but it ultimately boosts total profitability through cost savings and productivity improvement. Originality/value The study advances the existing literature by exploring how cost-saving and productivity improvement effects contribute to a more detailed understanding of the U-shaped relationship between green product innovation and financial performance in emerging East Asia.

Background: The development of asset-liability management was a response to the challenge of financial intermediation risks. Aim: This research looked into how asset-liability management impacted the economic success of DMBs, as quoted on the NGX, over a decade. Information was gathered from these banks' financial statements from 2013 to 2022. Methods: Analysis used descriptive, correlation, panel, and generalized least square techniques. The study categorized asset-liability management into asset management and liability management, each with its own performance indicators. Asset management's indicators included Asset Coverage Ratio (ACR), Total Asset Turnover (TAT), and Working Capital Turnover (WCT); liability management's indicators were Cash Flow Ratio (CFR), Capitalization Ratio (CAPR), Current Ratio (CR), and Return on Asset (ROA). Results: The study found that measures like ACR and TAT, under asset management, positively and significantly affect ROA, whereas WCT, a measure of asset management, negatively and insignificantly affects ROA. Conclusions: Conversely, measures under liability management, such as CFR and CR, positively influence ROA, whereas CAPR negatively impacts it.

In the era of the Internet of things, RFID (radio frequency identification) has attracted substantial interest of both managers and scholars. However, the unclear benefits of RFID and great risk make investors quite hesitant to invest in this disruptive and innovative technology. Prior research had employed the event study method to examine the short term market reaction of RFID adoption and found significant positive abnormal return. But whether RFID adoption can payback in the long run has not been addressed. In this paper, we extend previous research by using the ROA (Return on Assets) method to analyze the impact of RFID adoption on firm market value. We selected 74 publicly traded companies which were RFID adopters and there are altogether 108 adoption announcements ranging from 1997 to 2009. Then Pair T test of ROA had been conducted for each publicly traded company and its matching company. Other potential confounding factors are also considered such as the type of industry, timing of adoption, country, and firm characteristics such as level of diversification, financial health and growth potential. Altogether, there is no significant difference between RFID adopters and RFID non-adopters. Our result indicates that RFID's firm value has not been fully reflected in the long run. This may be attributed to its high cost and other uncertainties. The research in our paper may provide practical and academic implications.

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while there has been an increased concentration of some larger banks in the system. The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model. The results showed that the foreign-owned Banks (FB) variable has a positive impact on the variable return on Assets (ROA), while the variables bank size (BS) and market concentration index for loans (HHI) have a negative impact. The result also showed that the two variables the growth rate of total loans (GRTL) as well as foreign-owned banks (FB) have a positive impact on the variable return on equity (ROE), while the variables market concentration index for loans (HHI) and bank size (BS) have a negative effect. The third result is that the variable net interest margin (NIM) has the strongest positive impact on the two variables foreign-owned banks (FB) and credit growth rate (GRTL), while concentrations for credit placements (HHI) and bank size (BS) have a negative effect.

The main objective of this quantitative study is to examine the relationship between the following independent variables: capital adequacy ratio (CAR), liquid assets to total assets (LATA) and bank size (BS) and dependent variables: return on assets (ROA), credit worthiness indicator (Zscore) and return on equity (ROE) for selected Western Balkan bank countries. This model was estimated using a panel data methodology based on the assumption of a fixed and a random effect as decided in the Hausman test. The results showed that the variable size of the bank (BS) has a positive effect on the return on assets of banks in the Western Balkans, while the variable liquid assets to total assets (LATA) and capital adequacy ratio (CAR) have a negative impact. The results also showed that the variable share of liquid assets in total assets has a positive impact on the creditworthiness indicator of banks in the Western Balkans (ZScore). The third result is the variable return on equity (ROE) and it had the strongest positive impact with the independent variable size of the bank.

This study had dual purposes: (1) to examine relationship between profitability and internal and external factors of commercial banks in Botswana and (2) to perform trend analysis of factors indicating banks’ performance. The study analysed the secondary data obtained from Bank of Botswana reports. Profitability measures were return on assets (ROA), return on equity (ROE) and net interest income (NIM) as dependent variables. The independent variables comprised internal factors: bank liquidity, capital adequacy, credit risk, bank size, market profit opportunity, cost efficiency, and bank diversification as well as the external factors: economic growth, inflation and bank interest. We utilised regression technique to analyse the relationship between bank performance and internal and external variables presented in 3 models: ROA, ROE and NIM. The results suggest that ROE is the best measure of the bank profitability followed by ROA and NIM. The combination of inflation, cost efficiency, bank liquidity, credit risk, market profit opportunity and bank diversification was the best predictor of bank profitability as represented by ROE. The implications drawn from this study are that banks should match their operating expenses with revenue growth, and try to strike a balance between asset, liquidity, and liability management in order to remain competitive and earn higher profits. As for the regulator, effective controls should be placed on deposit rates, bank charges, inflation and banks rates.

The value of the company is an investor perception to the company, which is often associated with the stock price. The higher the value, the higher the company’s shareholder wealth. One proxy of the value of the company is the Price to Book Value (PBV). PBV is the ratio of stock price to book value of the company. This study aimed to examine the effect of Debt to Equity Ratio (DER), Size, Earning to Growth Price to Book Value (PBV) and Return on Assets (ROA) as an intervening variable. Population of this study is all manufaturing firm listed on IDX during 2008-2010. By using purposive sampling, the written got 123 firm to be the sample. This study used path analysis technique and sobel test, in previously, the data was examined using classical assumption test. The results of this study for the first regression model showed that the variables jointly Debt to Equity Ratio (DER) and the size effect on the Return on Assets (ROA). For the second regression model showed that the variables jointly Debt to Equity Ratio (DER), size, Return on Assets (ROA) and Earnings Growth affect the Price to Book Value (PBV). Of this study also showed that the Return on Assets (ROA) has no mediating effect on the relationship between Debt to Equity Ratio (DER) to the Price to Book Value (PBV), but the Return on Assets (ROA) has a mediating effect on the relationship between size the Price to Book Value (PBV).

Purpose This paper proposed a bootstrap fixed-effect panel regression model for predicting return on assets (ROA) using variables in the capital adequacy, asset quality, management efficiency and liquidity (CAML) framework as determinants. Bootstrap is a machine learning technique that allows for resampling of observed data to obtain robust and efficient estimates when the strict normal probability distribution assumption required for modeling is not met. Design/methodology/approach The study adopted a longitudinal research design. Original samples consisted of data on 19 Ghanaian commercial banks for the period 2011 to 2022. To eradicate the influence of time-invariant characteristics and the data being heavily tailed, both classical fixed-effect and bootstrap fixed-effect regression analyses were conducted. Findings Controlling for bank size, it emerged that capital adequacy and management efficiency ratios have significant positive influence on ROA, while the liquidity ratio recorded significant negative influence. Also, a rather surprising finding suggests that the relationship between asset quality and ROA is positive and significant, contrary to a previous assertion that asset quality and return on bank assets are negatively related. Originality/value Studies on bank performance mostly utilized the CAMEL framework. CAML variables were used as predictors of ROA in a bootstrap regression for panel data that is not normally distributed. CAML variables play critical policy decision roles in times of bank crises management, where premium is given to key bank lifesaving indicators.