Asset Growth Rate Research Articles

The Impact of Asset-Liability Management on the Profitability of Listed Commercial Banks in Vietnam

This paper investigates the effect of asset-liability management on the profitability of listed commercial banks in Vietnam, analyzing annual data from 2013 to 2023. The study uses VIF tests, Heteroskedasticity tests, Model Specification tests, and the Generalized Least Squares (GLS) model with the Modified Wald test to examine the data. The results reveal a positive correlation between bank asset management and annual GDP growth with profitability. Conversely, liability management and the year-on-year growth rate of total assets negatively impact profitability. Specifically, factors such as loans and advances, investments in securities on the asset side, and deposits and borrowings from other credit institutions, along with customer deposits on the liability side, are significant. Lending activities, in particular, are identified as key drivers of financial performance in the Vietnamese banking sector. However, the minimal impact of investment securities on profitability raises questions, given their traditionally significant role in banking profitability strategies globally. The study also highlights the negative effects of certain liabilities on bank profitability, stressing the need for careful liability management for banks in Vietnam. While GDP growth is generally linked with economic prosperity and financial sector growth, its impact on bank profitability in Vietnam appears limited, suggesting that other factors might play a more significant role.

Does Dividend Payment Generate a Market Signal to Investors?

In perfect market theory, the information will provide signals that are reflected in stock price movements. In the context of dividend payments, these theories are still debatable. Dividend payments will please shareholders as prosperity increases. But not sharing profits can also give a positive signal. The purpose of this study is to see if dividend payment able to give a positive signal on rising stock prices. The research will also look at whether profitability, leverage, asset growth, and interest rates also signal rising stock prices. Logistic regression analysis is applied to answer the research objectives. Purposive sampling is based on retail companies that specialize in the category of supermarkets and minimarkets that have been listed on the Indonesia Stock Exchange for the period 2013 to 2022. The results of this research conclude that dividend payments give a positive signal on rising stock prices. The chance of a stock price increase is 4.7 times compared to a company that does not pay dividends. Interest rates also inform investors to be careful in making investment decisions. Investors are only willing to bear additional risk if the expected profit is above the risk premium. Information on the company's financial performance such as profitability, leverage, and asset growth is not significant on the increase in stock price. This means that it does not provide signals for investors.

NONLINEAR DYNAMICS METHODS APPLICATIONS TO PRODUCT LIFECYCLE MANAGEMENT

The research being carried out is aimed at applying nonlinear dynamics methods in product life cycle management to improve communication between processes and achieve environmental sustainability. The purpose of the article is to create a nonlinear mathematical model for analysing product lifecycle management. Chaotic nonlinear dynamical processes of product lifecycle are deterministic but have the property that even small uncertainties in initial conditions lead to exponentially growing errors in the management that limit long-term forecasts. The emergence of chaotic behaviour in processes of product lifecycle was explored, focusing on fluctuations. The study employed methods such as systems analysis, correlation analysis, nonlinear dynamics, and the Surrogate model of chaotic Lorenz waterwheel. It was identified that sharp technological innovations as the primary drivers of short-term fluctuations impacting fixed efficiency and effectiveness of product life cycle process development. The resulting nonlinear dynamic model allowed for flexible operation, transitioning between equilibrium, periodic, and chaotic states based on coefficient values for asset growth rates and time constants reflecting product life cycle process dynamics. The research results are valuable for companies seeking to reduce their environmental impact and implement circular economy principles.

Effect of Micro and Macroeconomic Variables on Performance of Islamic Life Insurance in Southeast Asia

This study aims to determine the effect of gross contribution income, investment income and macroeconomic variables consisting of GDP, inflation and exchange rates on the growth of assets of Islamic life insurance companies in the Southeast Asian region. This research is a quantitative research with associative type. The analysis method used is panel data regression analysis with the help of E-views 12 software. The required data consists of company financial statements published through each company's website and World Bank Group data. The study was conducted on sharia life insurance during the 2017-2021 period with a sample of 33 companies. The results showed that partial contribution had a positive effect on asset growth, while GDP and exchange rates had a negative effect on asset growth, furthermore investment income and inflation did not affect the asset growth of Islamic life insurance companies in Southeast Asia. Simultaneously, all independent variables contributed 47% to the growth of Islamic life insurance company assets in Southeast Asia. The rest (53%) were influenced by other variables not addressed in the study.

Credit Scoring Modelling For Corporate Banking Institutions

This research aims to build a credit scoring modeling simulation of bank corporate loans. The credit scoring model is used in assessing creditworthiness in credit decisions. This model determines whether or not a company is eligible for the corporate credit facility it proposes. Observations were made of 100 companies included in the list of Kompas100 Index formers on the Indonesia Stock Exchange (IDX) that have the potential to apply for loans/credits to Bank Financial Institutions (IKB) in optimizing the corporate capital structure through bank debt facilities in the period 2022. Analysis was conducted on five financial aspects consisting of 14 research variables, including (i) liquidity aspects, including current ratio and quick ratio variables; (ii) solvency aspects, including debt asset ratio and equity ratio variables; (iii) profitability aspects including return on net assets, operating profit ratio, price to earnings ratio variables, (iv) activity aspects including total asset turnover, accounts receivable turnover, inventory turnover, current assets turnover, and (v) growth aspects including operating income growth rate, total assets growth rate, and operating profit growth rate variables. The analysis tool uses Logistic Regression through an assessment conducted on the company's credit rating as a proxy for the dependent variable, worth one if the credit application is feasible and worth 0 if the credit application is not feasible with a cut-off point of 0.5. The results show that credit scoring modeling for corporate credit is significantly formed from liquidity (CR) and solvency (DER) aspects. Out of 61 companies classified as not eligible for credit facilities, 58 companies were classified correctly, and out of 39 companies classified as eligible, 29 companies were classified correctly. The overall percentage shows 68.0, meaning that the logistic regression model has an accuracy of 68%.

The Influence of Corporate Social Responsibility Disclosure, Acceptance of Going Concern Audit Opinion and Audit Quality on Abnormal Returns

This research aims to examine the influence of CSR disclosure, acceptance of going concern audit opinion and audit quality on market reactions as measured by abnormal returns. The information content in Corporate Social Responsibility (CSR) disclosure, receipt of going concern audit opinion and audit quality are signals from the company that are predicted to cause a market reaction. The sample was obtained using a purposive sampling method and 20 mining sector companies listed on the Indonesia Stock Exchange in 2010-2013 were selected. The analytical method used in this research is multiple regression analysis. The results of hypothesis testing show that CSR disclosure, acceptance of going concern audit opinion, audit quality, company size and asset growth rate simultaneously influence abnormal returns. Meanwhile, partial CSR disclosure, acceptance of going concern audit opinion and audit quality do not affect abnormal returns. This implies that financial information is still a reference for investors in making investment decisions. They do not pay much attention to CSR disclosure information, going concern audit opinion and audit quality as a tool for predicting the future. This also shows that the characteristics of investors in the Indonesian capital market are more long-term oriented.

A robust model to estimate a firm’s average economic return

Theoretical studies question the ability of financial statement information to provide evidence about a firm’s economic performance, as the mathematical relation between a firm’s accounting and economic returns becomes intractable when economic depreciation is defined endogenously—as a function of the firm’s cash flow stream—and when its internal rate of return (IRR) and investment growth rate have not been constant. This paper derives a new equation, called the average internal rate of return (AIRR) estimation model, in which a firm’s AIRR is estimated as a function of its current-year accounting return, its current-year asset growth rate, a measure of accounting conservatism, and a term that identifies the firm’s historical investment growth rate trend. Because the model allows economic depreciation to be defined exogenously, non-constant returns and growth rates can be aggregated across investment cohorts, allowing a firm’s accounting return to be reconciled to its average economic return. One such exogenous schedule—called competitive market depreciation—is used to illustrate the model’s implications. The AIRR estimation model empowers analysts to identify the direction and magnitude of the potential difference between a firm’s accounting and economic return created by fixed asset depreciation, accounting accruals, and the immediate expensing of intangible assets.

Peer Effects on Capital Structure Decisions: Empirical Evidence from Selected Listed Companies of DSE

In the dynamic landscape of corporate finance, the effect of social dynamics on decision-making processes is a subject that deserves closer examination. This study attempts to capture effects of peer firms on capital structure decisions on listed firms of DSE from Food & Allied, Power & Fuel, Cement and Ceramic sectors during 2014-15 to 2021-22. We have used industry median leverage to measure peer firm’s capital structure decision. Results of Fixed effects model using a panel of 280 firm-year data suggest absence of peers’ effects on capital structure decisions of firm. The key variable of interest – industry median Total Debt ratio (TDR), Short term debt ratio (STDR) and long term debt ratio (LTDR) ratio have positive but statistically insignificant effects on firm’s TDR, STDR and LTDR respectively. Consequently, this study rejects the peers’ influence on capital structure decisions, concluding that capital structure is independent of peer dynamics. The finding further reveals cash generating efficiency and liquidity to be negatively associated with leverage. Asset growth rate exhibits significant positive association with leverage. Firms possessing more tangible assets prefer long term debt. Debt servicing capacity has significant positive effects on STDR. Total assets growth rate is positively associated with debt. The findings suggest that Bangladeshi managers emphasize on firm-specific aspects when making capital structure decisions. They should prioritize the firm’s strengths, opportunities, risks, weaknesses, conditions, and strategy over peer decisions.

Construction of Financial Performance Evaluation System based on Principal Component Analysis Algorithm and Its Application in Digital Transformation Enterprises

In the context of a strong national push toward the growth of the ""digital economy"", traditional manufacturing companies are increasingly turning to new digital technologies for their digital transformation. This paper aims to investigate the suitability of using a financial performance evaluation system for assessing the success of digital transformation strategies employed by these enterprises. The application of principal component analysis in digital transformation enterprises involves repeatedly selecting the main indicators in the financial performance evaluation index system of manufacturing enterprises. Finally, a financial performance evaluation index system suitable for analyzing digital transformation enterprises is constructed. The differences in financial performance before and after transformation are analyzed, and a comprehensive evaluation and comparative analysis are conducted on the financial performance of digital transformation enterprises and non-digital transformation enterprises. The experimental results show that the average growth rate of total assets of enterprises is 7.07%. The average growth rate of operating revenue is 20.99%. The standard deviations are 17.42% and 235.9%. There is a significant difference between the maximum and minimum values of these two indicators, indicating that the average dispersion of these two indicators is relatively high. In the initial phases of digital transformation implementation, enterprises that adopt digital technology experience a certain level of profitability improvement, as shown by the results. Compared to businesses that have not undergone a digital transformation, digitally transformed enterprises possess greater advantages and flexibility in digital operations. Digital transformation has important theoretical and practical value in improving the financial management level of digital transformation enterprises.

조직문화가 재무성과에 미치는 영향

Organizational culture is a common lifestyle that each organization has unique, and when talking about beliefs, values, cognition, norms of behavior, and behavior patterns that most members have in common (Wagner et al. 2005), telecommuting, flexible work, and free dress codes are implemented with the expectation of improving the productivity and satisfaction of members, but sufficient research has not been conducted on how they affect the financial performance of the entire company. Therefore, this study analyzes the effect of organizational culture on financial performance and the mediating effect of employee satisfaction.
 The results of this study are as follows. The flexible and discretionary culture reported a significant positive relationship with the total asset growth rate, indicating that the flexible and discretionary organizational culture helped the growth of companies. As a result of analyzing the relationship between organizational culture and profitability, it was confirmed that both flexible and discretionary culture and stable and control culture had a significant positive relationship with total capital return, and employee satisfaction had a mediating effect. As a result of analyzing the effect of organizational culture on employee productivity, it was found that flexible and discretionary culture reported a significant positive relationship with value-added per employee and sales revenue per employee, and it suggests that flexible and discretionary organizational culture helped increase employee productivity. However, there was no mediating effect of employee satisfaction.
 It was confirmed that it was helpful to pursue an appropriate organizational culture type according to the financial goals set by the company by reporting the analysis results that financial performance such as growth, profitability, and productivity of the company varies depending on the type of organizational culture. In addition, the effect of the culture and satisfaction perceived by members on the entire organization and individual productivity were confirmed, respectively, helping to predict how the types of organizational culture that companies should pursue affect the future of the company.

Кредитный портфель российского банковского сектора в условиях экономической неопределенности

The article presents the results of the study of the impact of anti-Russian sanctions and uncertainty factors of the economic system on the volume of the loan portfolio and overdue debt, the growth rate of bank assets and loans, the cost of credit risk. A comparative analysis of the growth rates of the loan portfolio of the Russian banking sector for the first half of 2020, 2021 and 2022 was carried out. The. economic effect of the anti-Russian sanctions and structural changes in the economy on the dynamics of problem loans and financial results of the banking sector has been revealed. The growth rate of the loan portfolio is given depending on the form of lending.
 The main factors of credit risk occurrence and methods of its management are determined. As a result of the study, conclusions were formed about the further restoration of the Russian banking system and the prospects for the development of the credit market.

Finance Option and Growth Prospect of Production Based Firms in Nigeria: A Post-Financial Crisis Analysis

Purpose: Firms' funding strategies have grown more fluid and unpredictable since the global financial crisis of 2007, particularly for developing nations like Nigeria. This research looked at the years 2010–2022, after the financial crisis, to see how different types of financing affected the expansion opportunities for production-based businesses in Nigeria. In particular, the research looked at how different types of financing—equity, debt, and retained earnings—impacted the expansion of assets for Nigerian production-based businesses. Design/Methodology/Approach: A panel regression estimate was used to evaluate the data gathered from the financial accounts of fifteen production-based enterprises. Findings: The most effective and reliable estimate, which was a random effect, showed that total equity had a positive and statistically significant influence on asset growth rate. Asset growth rates were negatively and insignificantly affected by total debt and retained earnings, according to the result. Compared to the internal option (retained earnings), this study found that the external source of finance option—particularly equity—has a strong propensity to accelerate the rate of expansion of a production-based corporation in Nigeria. Original/Value: A post-financial analysis of production-based enterprises is the innovative aspect of the study that aligns with Pecking Order Theory's postulates about the relationship between finance and economic prospects in developing nations like Nigeria. Practical implications: Consequently, producing organizations should include whole equity in their financing options for growth enhancement rather than seeing it as a last resort.

The Research of Influencing Factors that Possibly lead to Company Bankruptcy

Previous research has established correlations between corporate bankruptcy and internal factors such as financial ratios, cash reserves, company liquidity, and capital structure, as well as external factors, such as macroeconomic conditions, industry competition, and regulatory policies. However, several unidentified factors still warrant investigation. This study employs the Binary Probit Model to analyze data from Taiwan Economic Journal, encompassing 6,819 companies over the period from 1999 to 2009. The findings indicate that corporate bankruptcy is not significantly associated with 8 variables such as Operating Gross Margin, Cash flow rate, Operating Profit Growth Rate, Total Asset Growth Rate, Current Ratio, etc. However, it exhibits particularly strong correlations with 8 variables such as Pre-tax net Interest Rate, Operating Expense Rate, ROA(C) before interest and depreciation before interest, Non-industry income and expenditure/revenue, Net Value Per Share (B), Total Asset Turnover, etc. This research provides valuable insights into factors that may lead to corporate bankruptcy, which is instrumental in identifying warning signals, mitigating risks, and formulating effective preventive measures. Moreover, it points to the direction for further research in this field.

Analysis of Stock Value in the Science and Technology Innovation Board Market: A Principal Component Analysis Approach

The factors influencing stock returns have been extensively studied in the current academic sphere. In this study, the factor analysis method is employed to assess the investment value of stocks in the Science and Technology Innovation Board market (STAR Market) using indicators such as asset-liability ratio, current ratio, quick ratio, gross profit amount, YoY growth rate of net assets, asset return rate A, return on equity ratio ROEA, operating net profit margin, earnings per share of net assets, sales operating profit margin, and YoY growth rate of total assets. Factor scores are derived using principal component analysis. The obtained factor scores are ranked in descending order, revealing that Juchen Corporation holds a factor score of 1.11, ranking first among all companies and demonstrating the highest investment value. Following closely are EastMicro Semiconductor and Baochu Electronics. Additionally, this paper summarizes the stock performance of 20 other companies, offering investors a reference for value-based investment decisions. The quantitative findings of this study facilitate informed decision-making for investors, serving as a valuable reference for their investment strategies.

Determinants Of Capital Structure In Manufacturing Companies In Emerging Stock Market

This study aims to examine and obtain empirical evidence that business risk, profitability, tangibility, firm size, liquidity, and asset growth rate, affect the capital structure of manufacturing companies listed on the Indonesia Stock Exchange in the 2017-2021 period. The study was conducted on 95 manufacturing companies listed on the Indonesia Stock Exchange for the period 2017 – 2021. The data used in this study is panel data. The method used in this research is explanatory with a quantitative approach and the sampling used is simple purposive sampling.analysis Explanatory is used to explain the relationships between the variables of capital structure, business risk, profitability, tangibility, firm size, liquidity, and asset growth rate. The results show that profitability and liquidity have a negative effect on capital structure, tangibility and asset growth rate have a positive effect on capital structure, while business risk and firm size have no effect on capital structure. The results also show that the simultaneous test concludes that all independent variables affect the dependent variable.

Intelligent financial decision support system based on big data

Abstract In the era of big data, data information has exploded, and all walks of life are impacted by big data. The arrival of big data provides the possibility for the realization of intelligent financial analysis of enterprises. At present, most enterprises’ financial analysis and decision-making based on the analysis results are mainly based on human resources, with poor automation and obvious problems in efficiency and error. In order to help the senior management of enterprises to conduct scientific and effective management, the study uses big data web crawler technology and ETL technology to process data and build an intelligent financial decision support system integrating big data together with Internet plus platform. J Group in S Province is taken as an example to study the effect before and after the application of intelligent financial decision support system. The results show that the crawler technology can monitor the basic data and the big data in the industry in real time, and improve the accuracy of decision-making. Through the intelligent financial decision support system which integrates big data, the core indexes such as profit, net asset return, and accounts receivable of the enterprises can be clearly displayed. The system can query the causes of financial changes hidden behind the financial data. Through the intelligent financial decision support system, it is found that the asset liability ratio, current assets growth rate, operating income growth rate, and financial expenses of J Group are 55.27, 10.38, 20.28%, and 1,974 million RMB, respectively. The growth rate of real sales income of J Group is 0.63%, which is 31.27% less than the excellent value of the industry 31.90%. After adopting the intelligent financial decision support system, the monthly financial statements of the enterprises increase significantly, and the monthly report analysis time decreases. The maximum number of financial statements received by the Group per month is 332, and the processing time at this time is only 2 h. According to the results, it can be seen that the intelligent financial decision support system integrating big data as the research result can effectively improve the financial management level of enterprises, improve the usefulness of financial decision-making, and make practical contributions to the field of corporate financial decision-making.

STRATEGY EDUCATION TO INCREASE BANK BPD BALI'S ASSET GROWTH THROUGH ITS ABILITY AS AN AGENT OF REGIONAL DEVELOPMENT

Global economic growth is anticipated to slow in 2023 from 2022, accompanied by rising inflationary pressures, aggressive monetary policy rate hikes, and financial market uncertainty. This growth must be independent of the bank's role as an economic body that supervises, accumulates, and distributes monies to the public through deposits. Regional Development Bank (BPD) is a banking entity created by a local government with total shareholders or a fraction of shares controlled by the local government. The challenge is that the growth rate of commercial bank assets in Bali is larger than BPD Bali Bank. One of the actions that may be done is to carry out a strategy to create capacity as an agent of regional development. Briefing and learning activities allow organizations to become more aware of the importance of implementing ways to improve the growth of company assets. This activity is planned to follow up the implementation of the capability-building strategy as an agent of regional development in increasing the growth of Bank BPD Bali's assets so that asset growth increases optimally.

Opportunity knocks but just once: Impact of infrastructure investment decision on climate adaptation to flood events

Extreme natural disasters caused by climate change and socio-economic development, such as floods, are likely to occur more frequently and impose an increasing threat on the safety of people‘s lives and property around the world. The infrastructure investment of adaptation projects can effectively prevent and mitigate these climate impacted disaster risks, as well as reducing the catastrophic losses. In this paper, we propose an economic evaluation framework to incorporate risk preferences and investment timing for making climate adaptation. We use an extended loss distribution approach (LDA) to estimate the expected economic loss (EEL) of flood events with different levels, in which the Bayesian inference is integrated to estimate the parameters of loss severity distributions. The modeling framework is applied to a case study of flood risk management in Nanjing City, China. We find that the appropriate delay of investment timing can significantly increase the value of the adaptation project. The optimal investment timing is earlier, and the project value under optimal investment timing is higher, when the risk aversion coefficient of insurance company or the asset growth rate becomes higher. A lower discount rate or a lower investment cost will accelerate the optimal investment timing. Interestingly, we also find that the greater the difference between the discount rate and the asset growth rate, the higher the value of the adaptation project under the optimal investment timing. These findings are expected to provide useful information on flood disasters prevention for the investment decision of adaptation infrastructure which can be economically effective to integrate the impacts of climate change and socio-economic development.

PENGARUH PROFITABILITAS, TINGKAT PERTUMBUHAN DAN TINGKAT PAJAK TERHADAP STRUKTUR MODAL PADA PERUSAHAAN REAL ESTATE DAN PROPERTY YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2017-2019

This study aims to analyze the specific effect of Asset Growth Rate, Tax Rate on Capital Structure inReal Estate and Property companies listed on the Indonesia Stock Exchange (IDX). The sample in thisstudy is 40 real estate and property companies that publish fully audited financial reports. The type ofdata used is secondary data obtained from the financial reports of each Real Estate and Propertycompany for 3 years, namely 2017-2019. Data analysis using multiple linear regression analysis. Theresults of this study indicate that the variable profitability (ROE) has a negative and significant effect onthe capital structure of Real Estate and Property. Meanwhile, the asset growth rate and tax rate have apositive and insignificant effect on the capital structure of Real Estate and Property companies

Application of Entropy Weight TOPSIS Method in Financial Risk Assessment of Liquor Listed Companies

Taking 14 financial indicators of Shanxi Fenjiu from 2012 to 2022 as samples, this paper uses entropy weight TOPSIS method to establish a financial risk evaluation system from profitability, operating ability, debt paying ability and development ability, and makes a comprehensive evaluation on the financial risk status of Shanxi Fenjiu in recent 11 years. The results show that profitability and operating ability are the first-level indicators that have the greatest impact on financial risk. From the perspective of sub-divided second-level indicators, operating cost rate in profitability, inventory turnover rate in development ability, asset-liability ratio in debt repayment ability, and the proportion of total assets growth rate in development ability have the highest impact on the ranking results. The overall trend of financial risk of Shanxi Fenjiu in the past 11 years has shown "M" type fluctuations, and the recent risk level is relatively low. In order to effectively prevent risks, Shanxi Fenjiu should effectively control the sales expenses, balance the volume and price of products, improve the turnover efficiency, maintain the brand image, maintain the asset-liability ratio within a reasonable range, and strive to resolve the financial risks from the root, so as to enhance the financial value. The research results have certain reference significance for liquor listed companies to formulate reasonable financial management plan.