Asset Composition Research Articles

Firms Financial Inclusion and Export Performance: Evidence from Manufacturing Sector Firms in Pakistan

Financial inclusion of firms is crucial to create jobs, boost economic growth, and promote sustainable development. The study examines how financial inclusion affects enterprise export performance based on access to finance ratios. The study analyses the effects of firms’ financial inclusion determinants and macro environment factors on firms’ export values. The data comes from Pakistan’s manufacturing sector covering 400 firms listed on Pakistan Stock Exchange from 1999-2021. Driven by the nature of the data, the Method of Moment Quantile Regression is employed to assess the below and above mean regression estimations, and a two-step system GMM approach is used to address endogeneity concerns. The results of the study are robust against different specifications. The study reveals that assets positively impact a firm’s export performance, emphasising the importance of asset investment for foreign market competition. Asset tangibility negatively impacts export performance, except for low-gearing corporations, and fixed assets dominate. A balanced asset mix is crucial for improving exports. Debt-to-equity ratios, except for high-gearing firms, boost export performance, but domestic firms with high leverage ratios are more likely to fail. To avoid excessive leverage risks, firms must balance debt and equity. Diversifying the asset mix to include liquid and intellectual property can boost export success. Gearing affects export performance differently depending on a firm’s debt levels. Low-geared enterprises can leverage assets and debt to boost exports, while high-geared enterprises may be financially constrained and face challenges from excessive debt. Therefore, enterprises must carefully examine their gearing levels and make informed decisions on optimising their asset composition for optimal export performance. The study also opens up the possibility of further research on the role of exchange rates and firms’ investment in line with export performance.

Firms Financial Inclusion and Export Performance: Evidence from Manufacturing Sector Firms in Pakistan

Financial inclusion of firms is crucial to create jobs, boost economic growth, and promote sustainable development. The study examines how financial inclusion affects enterprise export performance based on access to finance ratios. The study analyses the effects of firms’ financial inclusion determinants and macro environment factors on firms’ export values. The data comes from Pakistan’s manufacturing sector covering 400 firms listed on Pakistan Stock Exchange from 1999-2021. Driven by the nature of the data, the Method of Moment Quantile Regression is employed to assess the below and above mean regression estimations, and a two-step system GMM approach is used to address endogeneity concerns. The results of the study are robust against different specifications. The study reveals that assets positively impact a firm’s export performance, emphasising the importance of asset investment for foreign market competition. Asset tangibility negatively impacts export performance, except for low-gearing corporations, and fixed assets dominate. A balanced asset mix is crucial for improving exports. Debt-to-equity ratios, except for high-gearing firms, boost export performance, but domestic firms with high leverage ratios are more likely to fail. To avoid excessive leverage risks, firms must balance debt and equity. Diversifying the asset mix to include liquid and intellectual property can boost export success. Gearing affects export performance differently depending on a firm’s debt levels. Low-geared enterprises can leverage assets and debt to boost exports, while high-geared enterprises may be financially constrained and face challenges from excessive debt. Therefore, enterprises must carefully examine their gearing levels and make informed decisions on optimising their asset composition for optimal export performance. The study also opens up the possibility of further research on the role of exchange rates and firms’ investment in line with export performance.

Re-Imagining Land: Conceptualizing the changing form and content of the Andean Peasant Community in Peru

In the highland Peru, people experience environmental and socio-economic change as simultaneous and interlocking. In this article, we study elements of change in livelihood activities and assets by combining survey (n = 247) with extensive ethnographic data. We study how changes in livelihoods do not only a modify the composition of activities and assets and argue that the form and content of the comunidad campesina as an important socio-political actor is transforming in a context where the key factor in generating uncertainty is no longer access to land, but compounding socio-environmental uncertainties.

Assets Composition and Financial Performance of Listed Consumer Goods Firms in Nigeria

This study investigated the effect of asset composition on financial performance of listed consumer goods companies in Nigeria from (2012-2021). three research questions and corresponding three hypotheses were formulated for the study. Ex-post facto research design was employed in the study. The population of the study included all consumer goods manufacturing firms quoted on the Nigerian Exchange Group (NXG) (NSE) as at 31st December 2022 with a sample size of Twenty-nine (29) consumer goods manufacturing companies selected from the population sector. The study relied on secondary sources of dataset which was obtained from Annual reports of sampled companies as provided by individual companies, Nigerian Exchange Group (NXG) website and Machame Database (www.machameratios.company.site). Amongst other preliminary analysis and tests, the panel least square regression analysis was done in validating the hypotheses. The study found that property, plant and equipment have positive and significant effect on the performance of quoted manufacturing companies in Nigeria Exchange Group; Intangible assets have positive but insignificantly effect on the performance of quoted manufacturing companies in Nigeria Exchange Group; current assets has positive significant effect on the performance of manufacturing companies quoted in the Nigeria Exchange Group. Consequent on the findings of the study, it is recommended amongst others that management of manufacturing companies in the Nigeria should formulate policy that will enhance their investment in property plant and equipment as this will increase the performance of their companies and enable them achieve shareholders wealth maximization objective. The study also recommended that management of manufacturing companies in their effort to enhance the performance of manufacturing companies should increase the level of the of on intangible assets. Increasing the investment in intangible assets would positively enha

THE EFFECT OF PROFITABILITY, CAPITAL STRUCTURE, ASSET STRUCTURE, AND FIRM AGE ON FIRM VALUE

The goal of this study was to gather empirical data on how firm value in manufacturing enterprises is impacted by factors such as profitability, capital structure, asset structure, and firm age. In this study, 89 manufacturing businesses that were listed on the Indonesia Stock Exchange between 2018 and 2020 are used as a sample. The sample selection used purposive sampling method and obtained a sample of 89 companies. The EViews 10 program was used to process the data for this investigation. The findings of this study suggest that firm value is significantly positively influenced by profitability and capital structure. Asset composition has no significant impact on firm value. Firm age has a significant negative effect on firm value. This research is expected to provide benefits for investors by increasing knowledge about company values and is expected to be used as consideration in making investment decisions to visualize company assets so that investors can achieve the expected returns.

Analisis Kinerja Keuangan Pada Bank Sinarmas Dengan Menggunakan Common Size

The purpose of the study was to determine the composition of assets, liabilities and total income in the financial statements of Bank Sinarmas using the Common Size method. The type of research in this research is quantitative research. The data used is secondary data, namely financial statements in the form of balance sheets and income statements for 2019-2021. The results showed that the balance sheet, especially assets, increased, but on the cash side it decreased. Liabilities, especially liabilities, experienced stability from 2019-2021. Equities are also experiencing stability. This shows that the bank's financial development is stable, where the proportion of liabilities is greater than the proportion of equity. While on the income statement, seen from other operating income experiencing instability and profit for the year increased in 2019-2021, this shows that the performance of Bank Sinarmas in 2019-2021 was good because the company was able to maintain its net profit in the following year.

Liquidity and Profitability of Retail Companies: Evidence from Indonesia

This study aims to examine effect of liquidity on profitability of publicly listed retail companies on the Indonesian Stock Exchange (IDX). This study uses firm size and Working Capital Management (WCM) efficiency as control variables. The sample in this study consisted of 15 publicly listed retail companies in the period of 2014-2019. All variables are measured by a ratio scale. Profitability is proxied by return on assets. Data was analyzed with panel data regression using a fixed effect model. This study shows that liquidity has a positive and significant effect on profitability when measured using the current ratio. In addition, company size has a significant positive effect on profitability. A higher composition of current assets to current liability improves profitability. On the other hand, Cash Conversion Cycle (CCC) as a proxy of WCM efficiency has a significant negative correlation with profitability. This research findings contribute to understanding of the impact of liquidity, firm size and CCC on profitability in retail industry.

Demand for Financial Services and its Determinants: Micro Empirical Evidences from West Bengal, India

The strength of the economy of a country is closely connected to the soundness and effectiveness of its financial system, in general, and the banking system, in particular. In the Indian scenario, the banking sector plays a great role in the inclusion of groups of people in the formal banking system. Financial inclusion is focused on providing financial services to all sections of the society at a reasonable cost. The traditional measures of financial inclusion are focused on the supply dimension of financial services, but not the demand perspective. After the implementation of financial inclusion drives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), the demand side of financial inclusion gains new importance. This article attempts to recognize some of the demand-based parameters of the financial services after implementation of the PMJDY. The study is based on a primary survey conducted in some selected villages from the Bankura district of West Bengal, where the banking network is not adequate. Besides, the study also evaluates the effects of some socioeconomic factors of the demand of financial services. The empirical evidences show that the asset composition of the household and the income level of the family are effective in determining the demand for financial services.

세대별 가계특성의 판별요인 분석

The purpose of this study is to investigate the determinants based on the current household characteristics for the correct asset composition and selection according to the household characteristics of each generation. This study analyzed the determinants that reveal statistical differences according to the characteristics of each generation divided into the younger generation, the middle-aged generation, and the older generation. In the case of determinant function 1, it appeared in the form of occupation, and the household characteristics of determinant function 2 were total assets, total debt, housing (residential real estate), and non-housing (non-residential real estate). The following are particular analysis findings. First, the younger generation considerably determined the kind of occupancy with a high non-ownership rate, while the older generation significantly determined the type of occupancy with a high ownership rate. Second, in the case of large total assets, the middle-aged generation was significantly identified, and the smaller total assets were significantly identified as the older generation. Third, the middle-aged generation was significantly identified for the large total debt, and the older generation was significantly identified for the smaller total debt. Fourth, middle-aged households with high housing market value and the older generation with low housing market value was significantly distinguished; middle-aged households with large housing exclusion (non-residential real estate) and the older generation with small housing exclusion (non-residential real estate). In conclusion, it has been confirmed that there are differences in household characteristics according to generation in the housing supply policy, and appropriate government policy support and household asset management strategies are needed to avoid difficulties in the economic activities of the the older generation.

Analisis Laporan Keuangan Berdasarkan Metode Common Size Pada PT. Sentra Food Indonesia, Tbk

Analysis of Financial Statements Based on the Common Size Method at PT. Indonesian Food Center, Tbk. This study aims to determine and analyze the composition of assets, debts and capital based on the general size of the financial statements of PT. Sentra Food Indonesia, Tbk in 2018-2020. This type of research is descriptive quantitative research. The data collection procedure used in this study is through documentation in the form of financial reports obtained from the official website of the Indonesia Stock Exchange, namely www.idx.co.id. The results of the study show that in terms of the common size from the balance sheet, PT Sentra Food Indonesia, Tbk. who allocated funds for assets in 2018-2019 mostly from their own capital thereby revealing a stronger financial condition of the company, while in 2019-2020 most of the funds for assets came from debt. Common size in terms of profit and loss statement, PT Sentra Food Indonesia, Tbk. In 2018-2019 there was an increase in net profit so that it can be seen that the company managed to increase sales better, while in 2019-2020 net profit decreased due to decreased sales.

How Do Interest-Only Mortgages Affect Consumption and Saving over the Life Cycle?

Using a unique data set with detailed information on Danish households and their mortgages, we show that young and old households are more likely to use interest-only (IO) mortgages compared with middle-aged households. Young households use IO mortgages because they expect higher future income and old households because IO mortgages allow them to circumvent an otherwise binding liquidity constraint. Through different channels, IO mortgages thus facilitate consumption smoothing for young and old households. Our detailed data also allow us to examine how households with IO mortgages differ from households with repayment mortgages in terms of leverage, debt and asset composition, and pension contributions. This paper was accepted by Tomasz Piskorski, finance. Funding: All authors gratefully acknowledge support from the Danish Finance Institute. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4787 .

Implementation of Virtual Fiber Optic Module Using Virtual Reality for Vocational Telecommunications Students

Virtual Reality (VR) technology is a computer technology capable of replicating a real environment into an immersive world. VR is also capable of simulating the user's physical condition so that they are able to interact. In the world of education as a support for educational activities, especially for vocational high school students who are more dominant in practicum, this study aims to show the results of the early stages of implementing Fiber Optic (FO) learning support modules. The module development process is carried out in several stages: scenario preparation, 3D asset development with low poly optimization, scenario integration with 3D assets, triggering every interaction, multiuser settings, and implementation. To build a good VR Fiber Optic application, measurements using OVR metrics are carried out. This measurement aims to determine the reliability of the application that affects the user experience. In the OVR metric measurement, the highest FPS value is 43, and the lowest FPS value is 27. The value obtained is good enough to run VR applications with low poly asset composition. Measurement of the level of user satisfaction is also carried out by using the PIECES Framework. From the measurement results, the value of each variable is in the range of 3.4 - 4.91, which means that users are satisfied with the VR FO application as a virtual learning support module. This research shows that Virtual Reality technology can provide an overview of practicum that is easy to access and not limited by space and material.

FINANCIAL ASSETS OF THE ENTERPRISE AS AN OBJECT OF ACCOUNTING

In order to reveal the economic essence of financial assets, the article systematizes current approaches to their classification as the basis of information support at various levels of enterprise management. It was concluded that there are many different definitions of the concept of “financial assets”, they can be used, especially in the scientific environment, as: “financial instruments”, “monetary assets”, “financial resources”, this ambiguity leads to problems in understanding the essence of this term and causes problems in the accounting of these objects. Therefore, the article specifies the economic essence of financial assets for the needs of accounting. Based on the study of the legislative and regulatory framework, which regulates the accounting methodology of financial assets in domestic and international practice, their components for the needs of accounting are determined. In order to determine the relationship between financial assets and accounting objects, the article highlights certain features characterizing financial assets. Taking into account the above characteristics, the financial assets of enterprises can be defined as funds involved in the financial and economic turnover of the enterprise from various sources for the purpose of obtaining economic benefits and intended to ensure current and investment activities. That is, for accounting purposes, financial assets are a group of economic assets of an enterprise in the form of cash and other financial instruments: financial investments, receivables, cash of the enterprise and their equivalents. Summarizing the conducted research, the relationship between financial assets and accounting objects based on the Chart of Accounts is given. It is noted that financial assets are clearly indicated in the Chart of Accounts, both in the part of non-current assets (class 1) and in the composition of funds, settlements and other assets (class 3). That is, they are directly reflected in the accounting accounts, and therefore in the balance sheet of the enterprise. The practical use of the given composition of financial assets, based on the essence of this concept, corresponds to the current regulatory framework, takes into account their features and will contribute to the arrangement of financial assets in the accounting accounts and reflected in the balance sheet.

The Effect of Financial Stability, Financial Target, and Asset Composition on Fraudulent Financial Statement: Empirical study on food and staples retailing companies on the Indonesia Stock Exchange in 2017-2021

The purpose of this study was to analyze the effect of financial stability, financial targets, and asset composition on the occurrence of fraudulent financial statements in retail food & staples companies listed on the Indonesia Stock Exchange for the 2017-2021 period. This study uses 10 companies from retail food \& staple companies listed on the Indonesia Stock Exchange with a sample selection method based on purposive sampling. Hypothesis analysis was tested using Eviews 9.0. The results of this study indicate that financial stability has an effect on fraudulent financial statements, while financial targets and asset composition have no effect on fraudulent financial statements. However, financial stability, financial targets, and asset composition simultaneously have a significant effect on fraudulent financial statements

Definition, composition and recognition of intangible assets according to FAS 14/2022

The new Federal Accounting Standard (FAS) 14/2022 “Intangible Assets” makes significant changes to the Russian accounting of these assets of organizations in the non-state sector (including healthcare organizations in this sector). In one of the previous articles, we explored the main innovations of the above standard. In this article, we will analyze in more detail the issues related to the definition, composition and recognition of intangible assets, in accordance with FAS 14/2022. The following methods were used in the research: analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the research, the FAS 14/2022 regulations regarding the definition, composition and recognition of intangible assets (including issues related to the value limit for such recognition) of organizations in the non-state sector (in particular, healthcare organizations in this sector) were analyzed in detail, the main problematic aspects in this area are identified and proposals for their solution are substantiated. In addition, this article provides numerous examples to clarify the requirements of the above standard. The results reflected in this paper will be useful to a wide range of readers interested in the problems of Russian accounting, including accounting for intangible assets. In addition, the results obtained can be applied in the educational process of higher educational institutions, in the practical work of the accounting departments of organizations in the non-state sector (including healthcare organizations in this sector), as well as in the development and improvement of relevant regulatory documents on accounting.

The Effects of Beneish’s M-Score Model and Financial Ratio Analyis on Fraudulent Financial Statement Indications

The aim of this research was to collect empirical evidence on the effects of Beneish’s M-Score Model that was calculated using the eight formulas that come with it and of financial ratio analysis based on the indicators financial leverage, profitability, asset composition, liquidity, and capital turnover on fraudulent financial statement indications in manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange over the period 2017–2020. The dependent variable in this research was a dummy variable, where a score of 1 was assigned to a company which restated its financial statements and a score of 0 was assigned to a company that did not perform any restatement. The research results showed that only the variable financial leverage had a significant effect on fraudulent financial statement indications. Meanwhile, Beneish’s M-Score Model did not have any significant effect on fraudulent financial statement indications. Data analysis in this study used STATA (Statistics Data Analysis) software version 16 which was used to perform statistical data tests.

Role of Liquidity Pool in Stabilizing Value of Token

Liquidity pools play a crucial role in stabilizing the value of tokens, especially within the context of decentralized finance (DeFi) ecosystems. One of the primary mechanisms through which liquidity pools contribute to stability is by facilitating an arbitrage mechanism. Buying is made when token is undervalued. On other hand selling is made when it's overvalued. This arbitrage activity is made possible by the existence of liquidity pools, where traders can execute these transactions directly on decentralized exchanges. The constant pressure from arbitrageurs helps to bring the token's value back to its target peg, fostering stability. Furthermore, liquidity pools respond dynamically to changes in supply and demand for the token. As demand for the stablecoin increases, users swap other assets for it, leading to a rise in its price. Conversely, when demand decreases, users swap the stablecoin for other assets, causing its price to decrease. Liquidity pools adjust to these changing dynamics by automatically rebalancing the composition of assets in the pool, aligning with market conditions. This responsive behavior contributes to the stable value of the token, as the liquidity pool adapts to fluctuations in demand and supply. This research has discussed liquidity pool creation process of Two NFT tokens (METANFT, 9NFTMANIA) in world famous decentralized exchanges such as Pancake swap and Icecream swap.

Concentrating on Bailouts: Government Guarantees and Bank Asset Composition

Concentrating on Bailouts: Government Guarantees and Bank Asset Composition

Factors That Influence Financial Statement Fraud Using The Fraud Diamond Model

This study aims to obtain an empirical evidence about detection of the financial statement fraud accordance with the fraud diamond theory perspective that developed by Wolfe and Hermanson (2004). Proxy of independent variable that is the fraud diamond theory with four fraud risk factor is the factor of pressure proxied by leverage ratio, while the factor of opportunity was proxied by asset composition ratio, the factor of rationalization was proxied by audit quality, and the factor of capability proxied by percentage of director with accounting and finance education background, respectively. The samples that used in this study were 534 manufacturing companies that were listed in Indonesia Stock Exchange (IDX) in the period of 2013 until 2017. Secondary data were used in the form of annual reports of every companies. Hypothesis testing in this study was conducted by using logistic regression analyses with SPSS 20 software. The results of this study showed that variables such as pressure (proxied by leverage ratio), opportunity (proxied by asset composition ratio), and rationalization (proxied by audit quality) could be used to predict the financial statement fraud.

Management of Non-current Assets and Capital Investments in Enterprises of the Agro-industrial Sector: A Case Study of Ukraine

In the article we proved that, in the modern conditions of doing business in Ukraine, there is a high specific weight of operating non-current assets in the non-current assets of agricultural enterprises, which is caused by their production direction and sale of products in wholesale lots. In order to study the formed trend, the polynomial trend line of the specific weight of operating non-current assets in the composition of non-current assets of agricultural enterprises in Ukraine is displayed. The features of non-current asset management in agriculture are determined by certain features regarding their use, which include the slowness of capital movement, uneven loading, the irrationality of formation, and low liquidity. In the article, we established that the value of long-term biological assets of agricultural enterprises of Ukraine increased during the research period. However, at the same time, there was a simultaneous reduction in the specific weight of these assets, both as part of the total assets of enterprises and as part of non-current assets. That is, it can be concluded that the increase in the value of biological assets in agricultural enterprises is caused solely by the increase in prices for finished products and an increase in their cost price. Based on the results of the study, it was established that during the analyzed period, investments in the agricultural sector had a growing trend for a long time. Drop in investments that occurred in 2020-2021 was due to the crisis impact of the COVID-19 pandemic, which resulted in a general reduction in investment activity in the markets. According to the results of the analysis of the relationship between the size of capital investments and the level of profitability of enterprises in the agrarian sector of Ukraine, such interdependence was found in the studied period for medium-sized and small agricultural enterprises. According to the results of our research, cartograms of the grouping of regions of Ukraine by the specific weight of capital investments in tangible and intangible non-current assets of the agricultural industry of Ukraine in January-December 2020 were built, which allows realizing the visualization of the presentation of the obtained scientific results. In addition, from the research results we obtained, we can draw a conclusion about the high attractiveness of medium-sized enterprises in the agrarian sector as an object for capital investment.