Aspects Of Financial Performance Research Articles

EVALUATING THE IMPACT OF DEPRECIATION ON THE PROFITABILITY: UK FASHION COMPANIES

This study investigates the sophisticated dynamics of depreciation and its influence on the profitability of fashion companies in the United Kingdom. The UK's fashion industry has gained substantial growth recently and witnessed escalated sales in both new and used apparel. However, the fashion industry faces sustainability challenges due to the predominantly resulting rapid expansion of the fashion sector. In this competitive business environment, understanding the role of depreciation in shaping profitability becomes pivotal. Examining data collected from 17 UK-based fashion companies spanning the 2018 to 2022 period, this research precisely analyses how depreciation influences key financial indicators: return on assets, return on equity, and operational profit. The methodological approach involves the application of quantile regression analysis, and it offers an in-depth exploration of the relationship between depreciation and these vital financial variables. The findings of this study reveal that there is no statistically significant relationship between depreciation and return on equity or return on assets within the purview of UK fashion companies. However, a positive and statistically significant relationship exists between the depreciation and operating profit. This positive relationship potentially arises from various factors such as enhanced asset utilization, long-term investments, involvement in capital-intensive industries, sustained revenue growth, and improvements in asset quality. These findings have significant implications for stakeholders within the UK fashion industry. While depreciation may not strongly influence return on equity or return on assets, its correlation with operational profit reveals a nuanced aspect of financial performance within these companies.

Financial Performance (Dis)parity in Post-transition Europe

Decades after the transition processes have spread across Central, Eastern, and South-Eastern Europe (CESEE), the former Soviet Union, and the Baltic, it was interesting to perform the post-transition and non-transition advanced European economies comparison to capture the outcomes of the 'catching-up process' . In this analysis, I tried to reach the results of this ‘catching process’ using the firm-level accounting data, namely, enterprises' annual accounts rather than countries' national accounts. The goal was to evaluate if post-tran- sition countries' enterprises have reached the financial performance of non-transition countries' enterprises across Europe, three decades after the transition processes began. The research captured firm-level financial performance aspects revealing some differentiators, namely, financial report indicators that differed for the enterprises belonging to post-transition countries in comparison with the ones belonging to non-transition countries in Europe. The findings related to the liquidity, solvency, indebtedness, profitability indicators, and labor intensity ratio were derived by logit regression models. The observations for 569 European companies were provided by Orbis Europe for the year 2021 annual accounts. According to the results, enterprises in post-transition countries, characterized by lower total assets and working capital scale, were likely to have lower profit margins, share of employees’ costs in operating turnover, current ratio, and gearing, while higher solvency and liquidity ratio. Mild marginal effects indicated the gap narrowed but with still existing significant disparities, particularly in the field of liquidity.

Financial Performance of Dairy Cooveratives in West Java-Indonesia During the Covid-19 Pandemic and Foot-and-Mouth Disease Outbreak

Dairy cooperatives play an important role to collect milk production from dairy farmers, distribution of milk to the milk processing industry, concentrate supply services, credit guarantees, artificial insemination and animal health services, savings and loan services, and various other services carried out by cooperatives. This condition causes the dependence of dairy farmers on cooperatives to be quite high. External factors can influence cooperative resilience, such as the Covid-19 pandemic and Foot-and-Mouth Disease (FMD). Therefore, the purpose of this study was to analyze the performance of cooperative milk production, and to the financial performance of cooperatives in the post-pandem Covid-19 period and during FMD. The method used in this study was a survey method to KPBS Pangalengan which represents large cooperatives, KSU Tandangsari which represents medium-sized cooperatives, and KPS Bogor which represents small cooperatives. The analysis method used standard cooperative performance methods through regulations of the Deputy for Supervision of the Ministry of Cooperatives and Small and Medium Enterprises (KUKM) of the Republic of Indonesia Number 06/Per/Dep.6/IV/2016 and key perfomance index to assess the financial performance of cooperatives. The results of the study showed that the performance of cooperative milk production decreased by 19.45% during the Covid-19 pandemic to the FMD as a result of the dairy cow mortality rate of 20.14%. The financial performance of dairy cow cooperatives was in the adequate category, both during the Covid-19 pandemic and FMD, but there was a decline in the ratio in all aspects of financial performance during the FMD. Thus, the performance of milk production and the financial performance of dairy cooperatives was better during the Covid-19 pandemic than during the FMD period. Therefore, strengthening milk production by providing new dairy cows and strengthening finances is very important

COMPARATIVE ANALYSIS OF THE FINANCIAL PERFORMANCE OF THE GOVERNMENTS OF THE CITY OF BEKASI AND THE CITY OF SURABAYA BEFORE AND AFTER COVID-19

The aim of this research is to analyze the comparative financial performance of two institutions government in the four main financial years, namely 2019, 2020, 2021 and 2022. This analysis is to understand how the pandemic has impacted several aspects of financial performance, such as income, budget expenditure, deficit, etc. This study uses a descriptive quantitative method by observing a number of financial ratios, including the independence ratio, effectiveness and efficiency ratio, activity ratio and growth ratio. Bekasi City's financial performance is more stable after the pandemic with a maintained surplus and an optimal ratio of independence, effectiveness and shopping activities. While Surabaya is very independent and fantastic in terms of income & expenditure, its spending activity ratio is inferior to Bekasi and experiences large deficits every year. Therefore, this research has an important objective to identify significant changes in the APBD of these two cities before and after the COVID-19 Pandemic, as well as to explore the factors that contributed to these changes, so that they can make a positive contribution in maintaining regional financial stability and supporting efforts for sustainable economic recovery.

The Effect of Implementing Good Corporate Governance (GCG) on the Financial Performance of Islamic Banks in Indonesia

The implementation of Good Corporate Governance (GCG) in Indonesia's Islamic banking sector is an important step to ensure transparency, accountability and fairness in the operations of financial institutions. As an integral part of the financial system, Islamic Banks not only provide services in accordance with Islamic economic principles but are also expected to implement good corporate practices to maintain the sustainability and reliability of the financial system.Corporate governance in the banking sector gained attention after the 1997 financial crisis, with the establishment of the National Committee on Governance Policy (KNKG) in 1999. Analysis of previous research results shows variations in the effect of GCG implementation on the financial performance of Islamic banks. Some studies found a significant positive impact, while others showed negative or insignificant results. Variations in results are also seen in performance indicators such as CAR, NPF, ROA, and ROE, reflecting the complexity of the relationship between GCG and aspects of financial performance. Therefore, deeper contextual understanding and improved effectiveness of GCG implementation are needed to understand and maximize its impact amidst increasingly complex financial market dynamics.

Does labour social responsibility disclosure affect financial performance? Evidence from Indonesia

This study examines the effect of disclosure of labour social responsibility on the company's financial performance as measured by operational aspects (ROA), profitability aspects (ROE), and sales aspects (ROS). This study uses regression analysis to examine the relationship between labour social responsibility disclosure and financial performance of companies listed on the Indonesia Stock Exchange during 2015-2020 and indexed by GRI. The results of this study indicate that the disclosure of employment social responsibility has a significant effect on the achievement of financial performance aspects of operations (ROA) and financial performance aspects of sales (ROS), while if it is associated with the achievement of financial performance aspects of profitability (ROE), there is no significant effect on employee social responsibility disclosure. This research contributes to achieving sustainable development goals by providing views for companies regarding the impact of implementing and disclosing employment social responsibilities and contributing to literature related to labour, financial performance, and sustainability disclosure. This novel research provides groundbreaking insights into the impact of implementing and disclosing employment social responsibilities on financial performance, highlighting the importance of labor, financial performance, and sustainability disclosure in achieving sustainable development goals.

The Impact of Corporate Governance on Financial Performance of Private Commercial Banks in Bangladesh

Corporate governance is imperious to the banking sector's growth. The study aims to explore how corporate governance mechanisms impact certain aspects of financial performance. This study has taken five listed conventional PCBs with a five-year study period from 2016 to 2020 using the purposive sampling technique. The influence of various CG mechanisms on financial performance attributes has been investigated through the use of multiple regression analysis. The study findings demonstrate that equity ratio, log total assets, and log listing age out of eight variables have a significant influence on NPM and ROA, while the other five variables revealed insignificant influence. On the other hand, ROE was influenced by log total assets and log listing age, but insignificant influence was found in the remaining six variables. Moreover, log listing age revealed a significant impact on EPS, whereas an insignificant influence has been observed in the case of the remaining seven variables. The study recommended that corporate governance must be adequate and transparent for the sake of pertinent stakeholders in the banking sector.

Pengaruh Operating Capacity, Sales Growth, dan Arus Kas Operasi Terhadap Financial Distress

This study aims to examine the effect of Operating Capacity, Sales Growth, and Operating Cash Flow on Financial Distress in Service Companies in the Infrastructure, Utilities, and Transportation sectors listed on IDX period 2018-2020. The technique used in this study is purposive sampling which produced 40 samples companies in a period of 3 years. The analytical method used is multiple linier regression. The result of this study indicate that Operating Capacity and Operating Cash Flow affect Financial Distress, Sales Growth has no effect in Financial Distress. Implications for manager can realize facing financial distress like operating capacity, sales growth and operating cash flow and focus to maintain operating cash flow generating enough to drive the operating capacity needs of the business. There is also a clear implication for managers of firms as paying most of one attention to one aspect of financial performance appears to increase financial distress like operating capacity, sales growth and operating cash flows and managing operating cash flow according to the company’s capabilities. Investors and creditors also need to consider fundamental aspects such as the company’s financial ratios providing a better understanding of the performance of the the firmas operating capacity, sales growth, and operating cash flows to prediction of financial distress. Keywords: financial distress, operating capacity, cash flow, sales growth, IDX

Pengaruh Kinerja Keuangan, Ukuran Perusahaan dan Internet Financial Reporting Terhadap Harga Saham Pada Perusahaan Telekomunikasi yang Terdaftar di Bursa Efek Indonesia

Abstract This study was aimed to determine the effect of financial performance, firm size and Internet Financial Reporting (IFR) toward stock prices in telecommunications companies listed on the Indonesia Stock Exchange. Aspects of financial performance used in this study were associated with financial ratios in the form of Return on Asset (ROA), Debt to Equity Ratio (DER) and Current Ratio (CR). This type of research was quantitative research. The sample of this study was determined by using a purposive sampling technique with criteria for determining the sample, namely telecommunication companies listed on the Indonesia Stock Exchange during the 2018-2020 period, companies that have annual reports and sustainability reports for the 2018-2020 period and companies that have official company websites, in order to obtain sample data of 10 companies. Then, the data was analyzed by multiple linear regression analysis using SPSS 26 application. The results showed that ROA, DER, CR, firm size and IFR had an effect on stock prices. Keywords: Financial Performance, Firm Size, IFR, Stock Price

Association of Commercial-to-Medicare Relative Prices With Health System Financial Performance

Various studies have documented the rise in commercial insurance prices during the past 2 decades; however, estimates on the association of rising costs with health systems' financial health are lacking. This study calculated 2 measures from standardized Audited Financial Statements (AFSs)-operating margins and days of unrestricted cash on hand-to explore the associations. To estimate the association between health systems' financial condition and the ratio of commercial to Medicare relative prices. This cross-sectional analysis combined standardized 2018 AFSs from a large sample of US health systems with publicly available relative price data to assess the association between their financial outcomes and commercial-to-Medicare relative inpatient prices. The 2018 AFSs were collected and standardized from a convenience sample of multihospital health systems and single hospitals that were included in round 4 of the RAND Hospital Price Transparency Study. Cross-sectional, multivariate regression models were estimated, controlling for payer mix and other system characteristics, and models were weighted by health systems' 2018 adjusted admissions. The analyses were conducted July 2021 through November 2022. The commercial-to-Medicare relative price for inpatient services (2018-2020 pooled average), which represents the average amount paid by commercial plans as a percentage of what Medicare would have paid to the same health system for the same services. Operating margins and days cash on hand, which capture complementary aspects of financial performance (profitability and liquidity). The study sample included 156 health systems in the US, representing diverse geography, size, and ownership type. Mean (SD) days cash on hand were 180.1 (113.3) and operating margins were 3.3% (3.6%) in 2018. Overall, a 1-unit increase in the commercial-to-Medicare relative price ratio was associated with a 21.3% (95% CI, 21.3% to 21.4%; P < .001) increase in days cash on hand and a 2.7 (95% CI, 2.7 to 2.7; P < .001) percentage point increase in average operating margins. Higher Medicaid payer mix share was associated with fewer days cash on hand (-3.3%; 95% CI, -3.3% to -3.3%; P < .001) and lower operating margins (-0.081; 95% CI, -0.082 to -0.081; P < .001). This cross-sectional study of health system financial data found that higher commercial-to-Medicare relative prices and a lower Medicaid payer share were associated with higher profits and more days cash on hand. These findings provide evidence against the claim that relatively higher commercial prices are primarily used to offset losses from public payers rather than to increase profits and liquidity.

Analysis on the motivation and economic consequences of Humanwell Healthcare asset stripping

Due to the rapid economic development, many listed companies blindly pursue diversification, resulting in the company into the main business diversification, loss of core competitiveness, performance decline and other difficulties, therefore, the means of asset stripping came into being. Taking Humanwell Healthcare as an example, this paper not only analysizes the motivation of enterprise asset stripping, but also measures the economic consequences of enterprise asset stripping from two aspects of market reaction and financial performance. In terms of market reaction, it makes a comprehensive evaluation through the event study method. In the aspect of financial performance, the financial indicators are used to analysize the performance changes of enterprises before and after asset stripping. Through the research of Humanwell Healthcare asset stripping, it can provide reference for other enterprises planning to carry out strategic contraction.

Corporate Governance Mechanism – Financial Performance Nexus : Empirical Evidence from Indian Banks

This study empirically analyzed the corporate governance mechanism – financial performance nexus of banks in India. The analysis was based on balanced panel data over the period from 2010 – 11 to 2020 – 21 for 10 public and private sector banks, using a hierarchical multiple regression approach. The study investigated the three aspects of financial performance, namely return on assets, return on equity, and Tobin’s Q ratio. Based on previous studies, a conceptual model was developed by taking the financial performance of banks as a dependent variable, corporate governance attributes as independent variables, and age, size, growth, and financial leverage as control variables. Content analysis was applied to derive the Corporate Governance Index. The findings for accounting-based measures revealed that board attendance had a positive and significant impact on ROA and ROE of banks, while board expertise and CEO duality had a negative and significant impact on ROA and ROE. Moreover, board gender diversity had a positive and significant impact on ROE, and board committees had a negative and significant impact on ROE. A study for market-based measures found that board meetings had a positive and significant impact on TQR, whilst board committees and board expertise had a negative and significant impact on TQR. The study’s outcomes implied that banks, government, regulators, and policymakers should ensure and promote strong corporate governance mechanisms to compete in the global financial market.

A social investing approach for portfolio recommendation

Presently, people use social media at a greater rate to share their personal investment experiences. This plentiful user-generated data source has been promisingly used by investors for portfolio creation. A new type of investing platform that allows investors to copy the portfolios of experienced investors has grown dramatically. In this research, we propose a collective intelligence mechanism that can extract and consolidate the opinions expressed over the social investing platform and generate appropriate portfolios by analyzing other investors’ knowledge, authority, and opinions toward the investment target. The experimental results obtained based on the social investing platform eToro.com reveal that the portfolio recommended by the proposed mechanism outperforms the market index and other benchmark approaches in various financial performance aspects.

İSLAM ÜLKELERİNDE ENTELEKTÜEL SERMAYENİN FİNANSAL PERFORMANS VE FİRMA DEĞERİNE ETKİSİ

This study analyzes the effect of intellectual capital (IC) efficiency on firm value and financial performance indicators for companies in Islamic countries. Sample consists of 1,681 firms from eleven Islamic countries, covering eight years between 2010 and 2017. We use value-added intellectual capital (VAIC) methodology and run OLS regressions with panel data. Findings reveal that IC positively affects firm profitability and liquidity, and negatively affects leverage. Furthermore, both IC and the components of IC positively affect firm value. Lastly, Shariah-compliance has a positive impact on firm value, profitability and liquidity and a negative impact on leverage. This is the first study to analyze the effect of IC efficiency on firm value and on financial performance aspects for a very broad sample covering 11 Islamic countries at the same time. Last, this is the first study to investigate the effect of Shariah-compliance on value and financial performance attributes of firms in Islamic countries.

Analysis of Net Interest Margin (NIM) and Return on Assets (ROA)

In 2018 the banking sector experienced a very fast expansion resulting in a decrease in the Capital Adequacy Ratio (CAR) at the level of 22.01% compared to 2017, namely 22.75%. Growth in risk-weighted assets (RWA) was the cause of the decline in the value of the Capital Adequacy Ratio (CAR) which can be influenced by aspects of financial performance, one of which is the profitability aspect of Net Interest Margin (NIM) and Return On Assets (ROA). This study aims to determine the effect of Net Interest Margin (NIM), Return On Assets (ROA) on the Capital Adequacy Ratio (CAR) in 31 private banks listed on the Indonesia Stock Exchange (IDX). The method used is multiple linear regression analysis using IBM SPSS 24. Based on the results of the study showed a significant influence between Net Interest Margin (NIM), Return On Assets (ROA) on the Capital Adequacy Ratio (CAR) together (simultaneously).

Does the life cycle affect earnings management and bankruptcy?

Research background: Deteriorating economic conditions and a negative outlook increase the pressure on financial management and the need to show high financial performance. According to Positive Accounting Theory, the growing risk of bankruptcy is associated with the phenomenon of earnings management. Bankruptcy risk and the quality of reported profits, along with other aspects of financial performance, vary throughout the company's life cycle. Nevertheless, these factors or their interactions are investigated only to a very small extent.&#x0D; Purpose of the article: The aim of this study is to clarify the impact of corporate life cycle and bankruptcy on earnings management, in order to describe behaviour of companies at different stages of corporate life cycle.&#x0D; Methods: A hierarchical mixed model with a random time and industry effect was chosen as appropriate because it allows the investigation of multilevel data that is not independent. The sample covers the financial indicators of more than 33,000 Central European companies from 2015?2019. The non-sequential Dickinson model, company age, and three models of accrual earnings management were used as proxies for the company's life cycle and quality of reported profit.&#x0D; Findings &amp; value added: Earnings management and bankruptcy risk have a U-shape, indicating that financially distressed firms reduce reported accounting profit at the Introduction, Decline and, to a lesser extent, at the Growth stage. Slovak and Czech companies manipulate profits to a similar extent, Hungarian companies increase accounting profit to a greatest extent than the surveyed countries by controlling bankruptcy ? life cycle effect; however, the variability of accounting manipulations across industries has not been demonstrated. These findings imply that start-ups and declining businesses provide crooked financial statements to obtain more favourable debt covenants, and estimating discretionary accruals using life-cycle subsamples can improve the predictive power of accrual earnings management models.

PENGARUH TEKANAN EKSTERNAL, AKUNTABILITAS, KETIDAKPASTIAN LINGKUNGAN DAN PENGENDALIAN INTERNAL TERHADAP PENERAPAN TRANSPARANSI PELAPORAN KEUANGAN

Financial transparency is is freedom to obtain information about aspects of financial performance in a comprehensive and open report manner which is summarized both positive and negative, accurate, timely, decisive and balanced through the media in the form of the presentation of financial statements that can be accessed by various interested parties with the assumption that the public has the right to know information. The purpose of this study is to provide the effect of external pressures, accountability, environmental uncertainty and internal control on the application of financial reporting transparency. Thise reasearch was conducted at OPD in Badung Regency. The population in this study were all apparatus work units totaling 8212 people. The sampling technique is using purposive sampling method, so that a sample of 114 people from 38 OPD is obtained. The analysis technique used is Multiple Regression Analysis. Test results show that external pressures and accountability had a positive and significant effect on the application of financial reporting transparency. While environmental uncertainty and internal control do not have significant effect on the application of financial reporting transparency.

Good Corporate Governance and Leverage of Financial Performance: Literatur Review

A company has a main target to make a profit. However, in these years there are some private company and State-Owned Enterprises has financial trouble and suffered financial losses. Some of those financial trouble is caused by chaotic management and high ratio of debt that causing the risk of failed paying. Successful corporation management is strongly related with applying good corporate governance (GCG). This research aim to analyze the impact of good corporate governance (boards of commissioners, boards of independent commissioners, boards of directors, institutional ownerships) as non-financial aspect and leverage as financial aspect of financial performance. This research is a qualitative research using theoretical review and supported by the previous research. There are two theories as the basic theories to observing the previous research which is agency and trade off theory. The result of the analysis of some previous research found some proposition: (1) boards of commissioners has impact to financial performance, (2) boards of independent commissioners has impact to financial performance, (3) boards of directors has impact to financial performance, (4) institutional ownerships has impact to financial performance, and (5) leverage has impact to financial performance

COMPARISON OF THE IMPLEMENTATION OF MAQASHID SHARIA IN CERTIFIED SHARIA HOTELS AND UNCERTIFIED SHARIA HOTELS (STUDY ON SHARIA HOTELS IN INDONESIA)

The performance of Islamic entities does not only consist of aspects of financial performance (economic performance), but also views from the aspect of sharia as a characteristic that distinguishes it from conventional entities. The purpose of sharia is revealed in the form of maqashid sharia which must be applied in all aspects of life. Therefore, the maqashid sharia approach can be an alternative choice for assessing the performance of a sharia-based entity. In addition, another requirement for Islamic entities is to disclose Islamic Social Reporting (ISR), in which there are 43 items that are characteristic of Islamic entities that must be disclosed in the financial statements of Islamic entities as a form of accountability for Islamic entities. This research uses a qualitative approach by means of case studies based on the interpretive paradigm in order to capture the performance of Islamic hotels using the maqashid sharia approach, and to see whether the elements in Islamic Social Reporting already exist in Islamic hotels. Based on the results of a survey of sharia hotels in Indonesia, both those that have been certified as sharia hotels, hotels that have halal certification for their restaurants, and hotels that claim to be sharia hotels. The conclusion is that certified sharia hotels have been proven to have implemented and maintained sharia values in their hotel operations, although there were some insignificant violations. The implementation of sharia values is not only applied by sharia hotels that have been certified as sharia hotels. The new sharia hotels apply the halal concept, either claiming to be a sharia hotel in the name of the hotel or not mentioning the word sharia in the hotel name. In fact, there were almost perfect implementations in several Islamic hotels that were not yet certified as sharia hotels. It's just that for 2-star hotels and below that claim to be sharia hotels, the implementation of sharia values is only limited by not accepting guests who are not legal spouses, and not providing liquor.

Do State-owned Enterprises Underperform Compared to Privately owned Companies? An Examination of the Largest Polish Enterprises

ABSTRACT The aim of this article is to compare financial performance of the largest non-financial state-owned enterprises (SOEs) and privately owned enterprises in the years 2013–2015. We performed a univariate as well as discriminant analysis using various indicators assessing profitability, financial liquidity, and financial operational efficiency. When observing several aspects of financial performance, it is difficult to state whether SOEs underperform. Compared to privately owned enterprises, state companies achieve higher returns on assets. However, they underperform in terms of fixed capital employed, inventory management and have less financial liquidity.