The Influence of Digital Technologies on the Economic and Financial Performance of Brazilian Credit Unions

The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments. The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments.

The study investigated the influence of risk management practices on the financial performance of some selected credit unions in Kumasi metropolis; therefore a descriptive qualitative design was adopted where both primary data and secondary data were used. A total number of One Hundred (100) respondents were selected using the purposive sampling technique. A questionnaire was used as data collection instrument. Statistical Package for Social Science (SPSS) was used to analyse the data gathered from the respondents. The analysis revealed that all the risk management practices variables such as risk management environment, policies and procedures, risk measure, risk mitigation, risk monitoring and internal control have strong positive relationship with return on asset (ROA) and return on equity (ROE). Also the study revealed that the higher the return on asset (ROA), the better will be the risk measurement practices and risk monitoring practices in the credit unions. With regard to return on equity (ROE), credit unions that have higher return on equity (ROE) tend to practice better internal control practices. It is concluded that, there is strong statistically significant relationships between risk management practices and financial performance. The study recommends that senior management should recognize that the future is inherently uncertain and that its endless possibilities are too complex for anyone to predict with great accuracy. Instead of maintaining the illusion that the future can be fully understood or controlled, senior management should show courage and honesty when updating key stakeholders based on the latest forecasts. Keywords: Risk Management, Return on Assets, Return on Equity, Financial Performance DOI: 10.7176/RJFA/11-17-08 Publication date: October 31 st 2020

This paper investigates how the twin transition (digital & green) unfolds within firms by relating investments in digital technologies to the propensity of eco-innovating production processes and models. Drawing on a heterogeneous theoretical background, digital technologies can be hypothesised to enable eco-innovation across the board. However, a greater eco-innovation impact is expected from Artificial Intelligence and from bundling digital investments. Using the new Permanent Census of Firms of the Italian National Statistical Office, these hypotheses are tested on a large sample of more than 150,000 firms. Results confirm that the contribution of digital technologies to a firm’s eco-innovation is mainly driven by investments in AI application areas, while investments in other digital technologies work more selectively. Moreover, new eco-innovative production processes and models benefit from bundling investments in different digital technologies, but with differences among firms of different size.

The investments in digital technologies are expected to soon have a major impact on the textile and fashion companies’ sustainability and competitiveness. Motivated by these trends empirical research on investments of the fashion and textile companies in ICT technologies-based advancement in the Serbian case was provided in 2022. Representatives of 423 textile and fashion companies were asked about their investments in various digital technologies in the previous three years and their digital transformation status. The research findings show that investments in cloud computing, IT, energy management, automation, robotics, and machine learning technologies have a significant impact on the digital transformation of companies. Most of them reached a medium level of transformation, fewer than a high level, with many textile and fashion companies just defining digital transformation. The contribution of the research findings to the investments in the companies’ digital transformation can be seen in the significance of the textile’s digital technology implementation, which enables manufacturers and retailers to respond directly to market demand by reducing product lead time and cost, increasing supply chain efficiency and profitability, and promising in terms of ensuring competitive advantage in the risk and challenging business environment.

The corporate governance mechanism was initiated to curb the excesses of managers that are saddled with the running of firm and also protect the shareholders and public interest. However, the collapse of big firms all over the world few years ago has awaken a renewed interest in firm adherence to corporate governance mechanism. Similarly, in Nigeria some firms also face similar situation. This study set out to examine the impact of corporate governance on manufacturing firms’ financial performance in Nigeria. The data used were collected from 39 listed manufacturing firms in the Nigerian Exchange Group from 2003 to 2022. The panel regression technique was used to determine the impact of corporate governance on financial performance. The study used three measures of manufacturing firms’ financial performance namely; Return on Asset (ROA), Return on Equity (ROE) and Tobin Q. Seven variables were used to measured corporate governance namely; Independence Board (IND), Board Meeting (BM), Audit Committee (AUD), Board Structure/Composition (BOC), Board Size (BOS), Executive Stock Ownership (EXS) and Nomination Committee (NOC), and the control variable was Firm Age. These variables were subjected to several test; Variance Inflation Factor (VIF). The Breusch-Godfrey Serial Correlation Langragian Multiplier Test, Breusch-Pegan-Godfrey Heteroskedasticity and the Hausman Test selected the Random Effect Panel regression. The study found that AUD had a positive effect on ROA and Tobin Q but negative with ROE, BOS had a negative effect on ROA, and ROE but positive with Tobin Q, BM had a negative effect on ROA, and Tobin q but positive with ROE. BOC had a negative effect on ROE and Tobin Q but positive ROA. EXS had negative effect on ROA and Tobin Q, but positive with ROE. IND had a positive effect on ROA and ROE but negative with Tobin Q. FAGE had a positive effect on ROA and ROE but negative with Tobin Q while NOC had positive effect on all the three measures of manufacturing firms’ financial performance. We concluded that corporate governance had significant effect on manufacturing firms’ financial performance in Nigeria. However, when different measurements were used to proxy firm financial performance the effect contrasts, this may be attributed to both the market value and operating value of financial performance adopted for this study. Hence, the study cannot draw conclusion on which of the manufacturing firm’s financial performance is better.

This study examines the impact of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non-performing loans, capital adequacy ratio, net interest margin, loan-to-deposit ratio, debt to equity ratio, and bank size. The study is based on secondary data of 15 commercial banks with 105 observations for the study period from 2015/16 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, capital adequacy ratio has a negative impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to decrease in return on assets and return on equity. Likewise, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In contrast, loan-to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan-to-deposit ratio, lower would be the return on assets and return on equity. In addition, debt-to-equity ratio has a negative impact on return on assets and return on equity. It indicates that increase in debt-to-equity ratio leads to decrease in return on assets and return on equity. Moreover, bank size has a positive impact on return on assets and return on equity. It indicates that larger the bank size, higher would be the return on assets and return on equity.

Financial Performance is the result or achievement that has been achieved by the company's management in carrying out its function in managing company assets effectively for a certain period. This financial performance is needed by the company to know and evaluate the extent of the company's success rate based on the financial activities that have been carried out. Stock returns can be used as a performance measure, because stock returns can interpret the company's management ability in carrying out its business to get results from good financial performance. Therefore, it is necessary to measure Profitability ratios (Return on Assets, Return on Equity, Net Profit Margin) and Solvency ratios (Debt to Asset Ratio, Debt to Equity Ratio).
 This study aims to determine the effect of Profitability Ratios (Return on Assets, Return on Equity, Net Profit Margin) and Solvency Ratios (Debt to Asset Ratio, Debt to Equity Ratio) on the financial performance of a company. The sample used is the financial statements of the Indonesia Stock Exchange with the Pharmaceutical sub-sector with 05 samples that meet the criteria for research. The research method uses multiple linear regression analysis with simultaneous T test and F test hypothesis testing.
 The results based on the Partial T Test (1) Return on Assets (ROA) has a negative effect on financial performance, (2) Return on Equity (ROE) has a positive effect on financial performance, (3) Net Profit Margin (NPM) has a negative effect on financial performance. (4) Debt to Asset Ratio has a negative effect on Financial Performance, (5) Debt to Equity Ratio has a positive effect on Financial Performance and for the simultaneous F test, the results show that simultaneously Return on Assets, Return on Equity, Net Profit Margin, Debt to Assets Ratio, Debt to Equity Ratio affect Financial Performance.
 
 Keywords: Profitability Ratio, Return on Assets, Return on Equity, Net Profit Margin, Solvency Ratio, Debt to Asset Ratio, Debt to Equity Ratio, Financial Performance, Stock Return.

This study aims to examine whether there is a significant effect of the company's financial performance as measured by the ratio of profitability with Return on Assets (ROA), Return On Equity (ROE), Return On Investment (ROI) and Net Profit Margin (NPM) to Dividend Payout Ratio (DPR). The data collected is obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange period 2013-2015. The analysis used to know how big the influence of ROA, ROE, ROI NPM to DPR company, writer do statistical analysis done by using descriptive analysis, doubled linear regression, correlation coefficient and coefficient of determination. While testing the hypothesis using F test for simultaneous test and t test partially, using SPSS 16. Based on the results of data processing, obtained regression equation Y = 31.225 + 1.209 X₁ - 0.106 X₂ + 0.505 X₃ - 0.708 X₄ + ε, analysis results Statistics simultaneously obtained the value of determination coefficient of 28.3%. While the rest equal to 71.7% influenced by other factors. Based on hypothesis test by using significant level α = 0,05 result of F test, show that together regression model can be used to explain the relation between Return on Asset, Return On Equity, Return On Investment and Net Profit Margin to Dividend Payout Ratio. 
 
 Keywords: Return on Assets, Return on Equity, Return On Investment and Net Profit Margin, Dividend Payout Ratio

PurposeThe objective of this research is to examine empirically the effects of digital maturity (DM) on the firm's financial performance as measured by return on assets (ROA), return on equity (ROE) and Tobin's Q.Design/methodology/approachThe authors use a panel data sample of 92 observations collected from 23 listed firms on Sweden's stock exchange over four years, 2015–2018. The authors hand collect DM from the digital leader's reports and collect financial data from DataStream. Using both static and dynamic panel (generalized method of moments (GMM) estimation) regression models to perform endogeneity problem, the authors explore the impact of the DM index on ROA, ROE and Q of Tobin.FindingsThe results show that DM has a negative effect on ROA and ROE but a positive effect on Q of Tobin. This negative relationship can be explained, by the fact that information technology (IT) investment and the DM could take years to be materialized and to be captured by performance indicators. Company investment in IT will increase and basically the ROA will be negatively affected because the higher value of IT assets is not amortized. Nevertheless, in the long term, company can maximize its performance. The positive effect on Q of Tobin captures the long-run effect of digital transformation.Research limitations/implicationsThis research can be helpful for firms in their process of digital transformation to succeed with the change, create value and to understand the challenges they have to face. In the short term, firms undertaking digital transformation will face some financial difficulties which affect negatively their ROA and ROE, but in the long term they can maximize their performance (captured by Tobin’s Q) and improve their market value.Originality/valueIn previous research, the impact of digital transformation on performance has been measured in terms of revenue growth, profit margins and in terms of earnings before interest and taxes (EBIT). Even if the authors have sufficient evidence of the positive effect of digital transformation on organizational performance, there is no support of the positive effect on financial performance. So, the authors try to fill this gap. This research has also the merit of examining this relationship empirically through a dynamic panel data estimation two-step system GMM, while the majority of previous studies are qualitative in nature based on interviews and questionnaires or simple correlations.

This study examines the impact of electronic payment system on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are mobile banking, quick response code payment, automated teller machine, digital wallet, credit cards and point of sales. The study is based on primary and secondary data of 8 commercial banks with 130 respondents. To achieve the purpose of the study, structured questionnaire is prepared. Secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of electronic payment system on the profitability of Nepalese commercial banks. The study showed that mobile banking has a positive relationship with return on assets and return on equity. It indicates that better the mobile banking services provided by banks, higher would be the return on assets and return on equity. Similarly, QR payment has a positive relationship with return on assets and return on equity. It indicates that more the payment through QR payment services, higher would be the return on assets and return on equity. Likewise, ATM banking has a positive relationship with return on assets and return on equity. It indicates that better the ATM services provided by the banks, higher would be the return on assets and return on equity. Further, digital wallet has a positive relationship with return on assets and return on equity. It indicates that higher the practices of digital wallet banking, higher would be the return on assets and return on equity. In addition, credit card has a positive relationship with return on assets and return on equity. It indicates that higher the number of payments through credit card, higher would be the return on assets and return on equity. Moreover, POS banking has a positive relationship with return on assets and return on equity. It indicates that practice of point of sales banking leads to increase in return on assets and return on equity.

This study examines the effect of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are bank size, operating efficiency, net interest margin, non-performing loan, capital adequacy ratio, and loan-to-deposit ratio. The study is based on secondary data of 12 commercial banks with 108 observations for the study period from 2014/15 to 2022/23. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets. It indicates that higher the non-performing loans, lower would be the return on assets. In contrast, non-performing loan has a positive impact on return on equity. It indicates that increase in non-performing loan leads to increase in return on equity. Similarly, capital adequacy ratio has a positive impact on return on assets. It indicates that higher the capital adequacy ratio, higher would be the return on assets. However, capital adequacy ratio has a negative impact on return on equity. It indicates that higher the capital adequacy ratio, lower would be the return on equity. Further, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In addition, loan to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan to deposit ratio, lower would be the return on assets and return on equity. Similarly, operating efficiency has a negative impact on return on assets. It indicates that higher the operating efficiency, lower would be the return on assets. In contrast, operating efficiency has a positive impact on return on equity. It indicates that increase in operating efficiency leads to increase in return on equity. In addition, bank size has a negative impact on return on assets and return on equity. It indicates that larger the bank size, lower would be the return on assets and return on equity.

Purpose of Study: This study was conducted with the aim to examine the effect of CR, DAR, DER, ROE, GPM, OPM, and NPM simultaneously to financial performance (ROA) and the effect of CR, DAR, DER, ROE, GPM, OPM, and NPM partially toward financial performance (ROA). Methodology: The sample of companies used in this study as many as 16 companies from 45 companies listed in the LQ45 Index period 2012-2016 with Purposive Sampling Technique. The independent variables used are Current Ratio (CR), Debt to Assets Ratio (DAR), Return on Equity (ROE), Gross Profit Margin (GPM), Operating Profit Margin (OPM), and Net Profit Margin (NPM) while the dependent variable is Return on Assets (ROA) as an indicator of Financial Performance. The analysis used in this research is the Multiple Regression Analysis. Results: The results show that CR, DAR, DER, ROE, GPM, OPM, and NPM have an effect toward ROA; CR, DAR, DER have no significant partial effect on ROA; and ROE, GPM, OPM, NPM have a partially significant effect on ROA. Implications/Applications: Regression test results ROE, GPM, OPM, and NPM partially indicate that the independent variables studied have a significant influence on ROA.

This study aims to determine "The Impact of Good Corpoorate Governance to Financial Performance on basic banking companies in Indonesia Stock Exchange". Data collection techniques used purposive sampling and the number of samples in this study were 50 data. From the results with partial test (t) use return on asset (ROA) the board of directors has a positive and insignificant effect on financial performance of return on asset (ROA), board of commissioners has a positive and not significant effect on financial performance of return on asset (ROA), audit committee does not significantly influence financial performance return on asset, good corporate governance has no significant effect on financial performance return on asset (ROA). From the results with partial test (t) use return on equity (ROE) the board of directors has a positive and insignificant effect on financial performance of return on equity (ROE), board of commissioners does not have a significant effect on financial performance on return on equity (ROE), audit committee does not have a significant effect on financial performance return on equity (ROE), good corporate governance has no significant effect on financial performance return on equity (ROE).

This study examines the effects of accounting information system on organization profitability in Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non performing loan (NPL), loan loss provision (LLP), capital adequacy ratio (CAR), credit to deposit rate (CRR) and bank size (BS). The study is based on secondary data of 15 commercial banks with 120 observations for the study period from 2014/15 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of effects of accounting information system on organizational profitability in Nepalese commercial banks. The study shows that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, credit to deposit ratio has a negative impact on return on assets and return on equity. It indicates that increase in credit to deposit ratio leads to decrease in return on assets and return on equity. Likewise, loan loss provision has a negative impact on return on assets and return on equity. It indicates that increase in loan loss provision leads to decrease in return on assets and return on equity. However, capital adequacy ratio has a positive impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to increase in return on assets and return on equity. Further, bank size has a negative impact on return on assets and return on equity. It indicates that increase in bank size leads to decrease in return on assets and return on equity.

This study investigates the impacts of political unrest; firm-specific and macroeconomic factors on the financial performance of the insurance industry in Ethiopia during youth-led mass anti-government protests. The study used, Return on Assets (ROA) and Return on Equity (ROE) as dependent variables. Eight key independent (internal and external) variables are also used. The study selected 17 out of 18 due to the availability of data for the period ranging from 2014 to 2022. The descriptive and multiple regression analyses were done. The results of the study indicate that political violence and terrorism (PV&T) have a negative and significant effect on ROA and ROE, while GDP has a positive and significant effect on ROA and ROE. The findings also show that financial risk (FR) has a negative and significant effect on ROA and ROE but a positive and significant effect on ROA and ROE. Furthermore, the study reveals that the size of company (SZ) and premium growth (PG) have a significant and positive impact on ROA but insignificant effect on ROE as well as liquidity (LQ) and asset tangibility (ATG) have a significant negative effect on ROE but insignificant effect on ROA. The inflation rate (INF) has no effect for both models on Ethiopian insurance financial performance. This study is considered one of the first pioneering studies that determined the factors affecting the financial performance of insurance companies in Ethiopia. Therefore, the study gives good insights to policymakers, regulators, and interested parties about enhancing the profitability of insurance companies in Ethiopia. Keyword: - political unrest, firm specific factor, macroeconomic factor, financial performance, insurance industry, Ethiopia JEL Classification G22 G32 F50