Asset Size Research Articles

Pengaruh Company Size dan Environmental Performance Terhadap Pengungkapan lingkungan

This Research aims to examine and prove the effect of Company Size and Environmental Performance on Environmental Disclosure by using a quantitative method. This research topic is very important to study in analyzing the extent to which mining companies fulfill their obligations to carry out Environmental Disclosure in accordance with OJK Regulation No. 51 of 2017. The sampling method uses purposive sampling with a total sample of 65 data from 13 Mining Companies Listed on the BEI for the 2017-2021 period. Multiple linear regression was used to analyze the data with the Eviews 12 software. The results of this study prove that mining companies listed on the BEI already have a responsibility for environmental disclosure which is driven by the large size of company assets owned and environmental performance. In addition, there is evidence that mining companies listed on the BEI have not fully reported environmental disclosure based on GRI standards. The company only reported 12 of the 32 required indicators or around 37.64%.

Microfinance Institutions’ Efficiency and its Determinants: Evidence from India

This study evaluates the financial and social efficiency of Indian Microfinance Institutions (MFIs) from 2005 to 2018 and also tries to find out the determinants of financial and social efficiency. In the first step, bias-corrected bootstrap Data Envelopment Analysis (DEA) efficiency scores for financial and social efficiency were calculated using two input and two output variables. In the second step of analysis above efficiency scores have been used as dependent variables and Seemingly Unrelated Regression (SUR) model is employed to ascertain the determinants of financial and social efficiency of Indian MFIs. The study finds that the aggregate financial efficiency of Indian MFIs is higher than the social efficiency. Over the study period, efficiency of Indian MFIs shows an increasing trend. Results of SUR suggest that as compared to Non-Banking Finance Company (NBFC) MFIs, Non-NBFC MFIs’ financial and social efficiency is better. Influence of age, scale of loan portfolio, asset quality and financial leverage on efficiency of MFIs are insignificant. This study also finds that asset size of the firm is positively associated with efficiency. Evidence from this study suggests that reform measures taken post microfinance crises has negatively affected the financial efficiency. However, social efficiency has improved during post reform period. JEL Codes: G21, C33

A Genetic Algorithm Approach to Optimal Asset Allocation of Defined Contribution Pension Funds: Evidence From India’s National Pension System

Life cycle asset allocation has recently gained popularity and is the default option in pension funds worldwide. A line of recent studies has refuted its glory and argues that a balanced fund with a fixed allocation throughout the investment horizon may yield better results. The question arises from these studies: What should be the balanced fund’s optimum asset allocation weight? Therefore, the present study uses Genetic Algorithm to obtain the optimum asset allocation weight for India’s defined contribution pension plan subscribers. To validate our result, the study compares the results of a Genetic Algorithm to the outcomes of widely used asset allocation techniques, notably the life cycle and equally weighted strategies. This study holds important policy implications as, given the size of the pension asset and the long investment duration, even a trivial increase in return will substantially impact investment outcomes, affecting the subscribers’ well-being in old age.

Investment Strategy, Manager Characteristics, and Corporate Governance Effects on Mutual Fund Performance: A Study of PT Asuransi Jiwasraya (Persero) During Period of 2013-2018

This study aims to examine the relationships between investment strategies, investment manager characteristics, and corporate governance on the investment performance of PT Asuransi Jiwasraya (Persero)’s mutual funds investment from 2013 to 2018. The year 2013 marked the introduction of a new bancassurance product, which necessitated PT AJS to generate higher returns on investment in a short-term period. The sudden change in management in 2018 brought the mismanagement case to public attention. The analysis utilized a cross-sectional multilinear regression approach, allowing for the examination of multiple independent variables and their relationship with the dependent variable. Data for the study is collected from various sources, including annual reports, financial reports, prospectuses, and court documents. The relationships are assessed using seven regression models, with measures such as mean return, standard deviation, beta, Sharpe ratio, Treynor ratio, Jensen’s Alpha, and state loss as the dependent variables. The regression models are estimated using SPSS software, and assumptions of linearity, independence of errors, homoscedasticity, and absence of multicollinearity are checked to ensure the validity of the analysis. Hypothesis testing is conducted to determine the statistical significance of the relationships, and measures such as R-squared, adjusted R-squared, and F-statistic are used to assess the overall goodness-of-fit of the models. The findings indicate that the models for mean return, Treynor ratio, Jensen’s Alpha, and state loss are statistically significant, demonstrating a strong correlation and high explanatory power. The results suggest that value investing and smaller market capitalization of constituent stocks have a positive association with investment performance. Additionally, reducing the presence of dividend-paying and suspect stocks is beneficial for investment performance. Factors such as management fees, education background, and years of experience show significant positive relationships, while investment horizon, asset size, and past performance have significant negative relationships with investment performance. The age of the investment manager does not exhibit a significant relationship. Furthermore, corporate governance demonstrates a negative relationship with investment performance. These findings provide valuable insights for improving investment performance and offer important lessons to prevent similar cases of mismanagement of investment funds in the future.

The Impact of Company Size Indicators on the Audit Fee

Audit fees are among some of the most important concerns of audit firms, financial/statutory audit regulators and academia. The objective of this paper is to analyze and evaluate the impact of company size indicators on the formation of audit fees. Based on the data available in the “Audit Analytics” database, a sample of 27 companies listed on the Bucharest Stock Exchange was selected, for which 524 observations were reported, representing the indicators “Audit Fee”, “Total Assets” and “Turnover” during 2017-2021. From the research carried out, it emerged that the turnover and total assets size indicators have a significant and positive influence on the financial audit fee. In addition, the findings indicate that “the market capitalization” indicator is not a predictive and causal variable of the value of the financial audit service.

PENGARUH MODAL INTELEKTUAL, UKURAN PERUSAHAAN DAN KUALITAS AKTIVA PRODUKTIF TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN PERBANKAN

The problem in this study is the economic crisis that has resulted in banking in Indonesia experiencing a slump where many banks were liquidated because they were unable to maintain their performance. This study aims to determine the effect of intellectual capital, company size, and quality of productive assets partially on the financial performance of banking companies listed on the Indonesia Stock Exchange for the 2017-2020 period. The population in this study were 47 banking companies listed on the Indonesia Stock Exchange for the 2017-2020 period. The sampling method used is purposive sampling, with a total sample of 13 companies, for 2017-2020 as many as 52 samples. Data collection techniques by downloading financial reports from the website www.idx.co.id. The data analysis technique used in this study uses multiple regression and hypothesis testing (t test and F test) .The results of this study partially indicate that intellectual capital has no significant effect on financial performance with a sig value of 0.275 > 0.05. Then the size of the company has significant effect on financial performance with a sig value of 0.013 < 0.05. While the quality of productive assets has a significant effect on financial performance with a sig value of 0.000 <0.05. Simultaneously, intellectual capital, company size and quality of productive assets affect the company's performance. The conclusion in this study is that intellectual capital and firm size have an effect on ROA. Meanwhile, the quality of earning assets has no effect on ROA.

Potensi Wakaf Produktif terhadap Asset Wakaf di Pemakaman Kampung Baru Jelupang

The purpose of this study was to see the potential of productive waqf on waqf assets in the cemetery of the new jelupang village. South Tangerang has great potential in terms of geography, demographics and economics, there are 7 sub-districts in South Tangerang, namely Pamulang, Pondok Aren, Ciputat, East Ciputat, Setu, Serpong and North Serpong Districts. However, in general, waqf in South Tangerang is still minimal as productive waqf. There are 1,477 waqf points in South Tangerang. One of the allotments of waqf for funerals. This research is a qualitative study with a sociological approach and uses the case study method. Data obtained through interviews and direct observation. The result of this research is that the development of productive waqf is closely related to the size of waqf assets, the capacity of Nazhir, and social capital. This can be seen where cemeteries built on donated land are usually poorly maintained because they are free. For those who manage or Nazhir do not have insight into waqf itself or it can be said that they have not become professional Nazirs. In essence, the use of the donated land for the graves is for the benefit of the people, where the use of the waqf land must be with the permission of the food management so that it is neatly recorded and according to the purpose of the waqf itself.

Determinants of bank profitability in Thailand by Generalized method of moments estimation

This research aimed to estimate the determinants of bank profitability of banks registered in Thailand by using the System GMM Estimator method. Bank level data from 2010-2020. Profitability is measured by three ratios: Return on Assets. Return on Equity and Net Interest Income Margin The determinants of a bank's profitability are bank-specific. Banking Industry Specific Factors and Economic Factors. The results showed increasing asset size results in lower profitability for banks, asset quality and operating costs negatively affect profitability. On the other hand, capital adequacy, inflation, and gross domestic product help boost profits for banks.

The Effect of Audit Opinions on TOBIN S Q and Stock Value by Panel Data Analysis

Purpose –Financial statements of businesses contain information risk for various reasons. The most accepted way to reduce the information risk is the independent audit of the financial statements of the enterprises. It is thought that the independently audited financial statements will have a positive impact on the market value of the enterprises. The main purpose of the research under this assumption is to measure the impact of audit opinion on the market value of the companies that operated in the manufacturing sector and traded on Borsa Istanbul. Design/methodology/approach –For measuring the impactof audit opinion on the market value of the companies that operated in the manufacturing sector and traded on Borsa Istanbul between 1998 to 2019 Tobin's Q ratio and stock price are used to represent the market value. Panel data analysis is used in the research, because of data sets consisting of both cross-section and time series. Tobin's Q ratio and stock price are determined as the dependent variables, audit opinion is determined as the independent variable and the leverage ratio and asset size are determined as control variables in the research. Finding –It is examined within the scope of 1651 financial statements and audit reports of 110 companies. And it is examined Tobin's Q ratio values on 31 March, 30 June, 30 September, 31 December and at the time of the announcement of the audit report. Also it is examined the firm's stock price on the date of the audit firm's opinion, on the date of the one day before and after it.Discussion –As a result of the research, it has been revealed that audit opinions do not affect the Tobin’s Q ratio but affect stock price of companies in Turkey.

The Crucial Macroeconomic and Microeconomic Determinants of Retail and Corporate Credit Risks

Purpose: In early 2018, the corporate non-performing loan ratio began to climb steadily, showing some threats to the financial health of the Egyptian banking system. Therefore, the determinants of corporate and retail credit risks in the banking sector of Egypt during 2013-2020 were studied in the present work to provide better insight into how the macroeconomic and microeconomic determinants affect the level of credit risks. Methodology: the present research utilized the Dickey-Fuller test to assess the stationarity of the panel data and then employed the generalized method of moments (GMM) for data analysis. Findings: it was found that asset size, loans-to-deposits, inflation, gross domestic product (GDP), and lending interest rate were negatively associated with the corporate credit risk, while the capital adequacy ratio, foreign direct investment (FDI), and public debt were positively related. Moreover, the loans-to-deposits ratio was negatively associated with retail credit risk, while the capital adequacy ratio was positively related. Originality/Value: In this context, classifying the credit risk into corporate and retail credit risk was very crucial as it illustrated that the corporate credit risk was more sensitive to the determinants than the retail ones.

Can Kuznets curve hypothesis explain the mission drift of microfinance institutions? Evidence from developing countries

In order for microfinance institutions (MFIs) to significantly impact the society, they must achieve both financial sustainability and outreach goals simultaneously. However, when MFIs prioritize financial sustainability at the expense of their outreach goals, it is regarded as mission drift. This study introduces the concept of the Kuznets curve hypothesis to explain the occurrence of mission drift in MFIs. By analysing data from 1,323 unique MFIs across 105 emerging countries, between 2010 and 2018, our findings corroborate the existence of the Kuznets curve for outreach and financial goals. The findings demonstrate that MFIs initially prioritize their outreach goal of serving more female clients but gradually shift focus towards financial performance as they expand and accumulate fixed assets. Moreover, we also empirically quantified the critical asset size of MFIs beyond which they are less likely to achieve their outreach and financial sustainability goals. The implications of these findings for policy are also discussed.

Pengaruh Struktur Modal Dan Pengelolaan Aset Terhadap Kemampulabaan Dan Dampaknya Terhadap Nilai Perusahaan Agribisnis Yang Terdaftar Di BEI

Agribusiness business has promising prospects, because consumer demand for agribusiness products will never stop, even though it fluctuates. Capital is one of the factors needed by a company, so efforts are needed to attract investors and manage assets as well as possible to increase profits. Investment decisions are determined by investors by considering the profitability and size of the company's assets as collateral for debt. Several previous studies were conducted by Salim and Yadav (2011); Mayangsari (2014); Sunarto and Budi (2009); Azhar and Norizza (2012); Samarakoon et al (2014); Niresh and Velnampy (2014); John and Muthusamy, Gabriel (2013); Tseng and Cheng (2011); Bei (2012) with stock exchange objects in several different countries. Different objects motivated the authors to conduct research on agribusiness companies listed on the IDX with the aim of analyzing the effects of capital structure and asset management on company profitability, analyzing the impact of capital structure and asset management on firm value, analyzing the effect of company profitability and analyzing the effects from capital structure and asset management to corporate value through profitability. This research is a descriptive causality study on agribusiness companies listed on the Indonesian Stock Exchange (IDX). Company data were analyzed by SEM and it was concluded that (1) Capital Structure and Asset Management did not significantly influence Profitability (2) Capital Structure and Asset Management had a significant effect on Firm Value (3) Profitability did not significantly influence Firm Value and (4) ) Capital Structure and Asset Management have no significant effect on Company Value through Profitability. Opportunities that exist in the company for investment in the future need to be considered by comparison relative to projections of internal funding sources for policy making regarding the application of capital structure and asset management to company value with profitability as a moderator, to maximize capital structure and asset management as a The main purpose.

Effects of Digital Transformation on Dynamic Capital Structure Adjustment: Evidence from China

Over the past two decades, there has been a surge in digital innovation. China is the world’s second-largest digital economy entity and the national strategy to build a digital China is in full swing. Chinese enterprises have received great support while pursuing digital transformation. This study aims to explore the impact of digital transformation on firm dynamic capital structure adjustment by taking evidence from Chinese listed firms. Based on the data of 3855 Chinese A-share listed firm-year observations during 2011–2021, this study employed a panel data fixed effects model to ascertain the association between the proposed variables. The results indicate that digital transformation has a significant positive effect on accelerating capital structure adjustment speed. Furthermore, we show that digital transformation promotes dynamic capital structure adjustment through financial flexibility. The impact of digital transformation on dynamic capital structure adjustment is characterized by heterogeneity in the ownership type, asset size, and credit cycle. In addition, reduced financing constraints and growing economic policy uncertainty will moderate the relationship between digital transformation and dynamic capital structure adjustment. Our findings provide insights into how digital transformation is driving companies to accelerate their capital structure adjustment speed to the optimal, and supplements the existing literature on the determinants of dynamic capital structure adjustment.

Analysis of Green Marketing Practices: A Micro and Small Enterprises Perspective

Green marketing is a growing concept connecting sustainable internal business operations and corporate social responsibilities. Hence, the study explored the green marketing practices of selected micro and small enterprises in Cavite, Philippines. The descriptive-causal research design was utilized, and the 20 legally-registered micro and small enterprises were purposively selected. MSEs in Cavite are dominated by sole proprietors with 1-9 employees, have an estimated asset size of Php3,000,000 or less, have been in operation for 1-3 years, and have an average monthly revenue of Php20,000 and below. They employ green marketing practices such as providing safe products and services, implementing more environment-friendly ways of pollution prevention, advertising green awareness and attraction, and utilizing vehicles that consume less energy. MSEs’ green marketing practices in production, packaging, advertising, and operation are highly effective, while distribution is less effective. Business profiles and MSE have no significant difference, excluding the difference between the number of employees and the perceived effectiveness of green marketing practices in terms of operation. MSEs faced difficulties in distribution due to safety protocols and lack of resources. Thus, the study recommends personalized marketing designs to engage wider customers and social-based marketing approaches to address diverse customer preferences.

Factors Determining the Financial Performance of Public Sector Banks in India

Now, an attempt is made in this paper to examine the determinants of profitability in Indian public sector banks during the period 2010-11 to 2021-22. For this purpose, a sample of 12 public sector banks listed in NSE & BSE has been taken. Multiple Linear Regression Analysis has been used to investigate the impact of independent variables such as a bank’s asset size (Size), capital adequacy ratio (CAR), cost to income (CTI), net non-performing assets (NPA), credit risk (CrR), credit deposit ratio (CDR),economic growth (GDP) and consumer price index (CPI) inflation on key bank profitability indicators, i.e., return on assets (ROA), return on equity (ROE) and net interest margin (NIM)as dependent variables, separately.
 The main findings show that bank asset size, cost to income, net non-performing assets, credit deposit ratio, and inflation are negatively related to ROA, ROE, and NIM. Credit risk and economic growth (GDP) have a positive impact on ROA, ROE, and NIM. While the capital adequacy ratio hurt ROA and NIM except for ROE. Even though overall explanatory and macroeconomic factors have a significant 5 percent effect on ROE and NIM as denoted by F-statistics value. Moreover, the banking sector has benefited weakly significantly from both economic growth and the inflationary environment. It is also suggested that if banks concentrate on these variables, they would be able to generate better profitability in the present globalized era. These findings are of value to both academicians and policymakers.

The effects of quantitative easing policy on bank lending: Evidence from Japanese regional banks

This paper examines the response of Japanese regional banks to the quantitative easing operations conducted by the Bank of Japan (BOJ) using semiannual bank-level data from 2001 to 2020. Many regional banks predominantly focus on lending business in their local areas so that, unlike some previous literature, we control for the local economic conditions. We found that, compared with the pre-QQE period, the BOJ’s government bond purchase has a remarkably greater impact on regional bank’s lending after the introduction of QQE. These results suggest that the QQE policy is quite effective in promoting bank lending. Regarding the differences in bank characteristics, the magnitude of impact is larger for regional banks with a higher NPL ratio, a larger asset size, and a lower market share. The first result is consistent with the findings of Bowman et al. (2015) and Matousek et al. (2019), whereas the second and third results are novel. The Granger causality tests produce consistent results.

Does financial distress induce companies to restructure their financing mix?

PurposeDistressed companies create panic among investors. The overall effect comes on the economy and leads to a degraded image and value of all the companies operating in a country. These distressing situations are harmful to the efficient development of a country in process of development. Financial distress (FD) is when a company or individual cannot promise to pay their obligations on time. Therefore, to analyze the threatening impacts of FD, the current study aims to reveal the impact of FD on the debt ratio (proxy of capital structure) of firms working in India.Design/methodology/approachPanel data analysis (PDA) has been used in the current study to analyze the data and generate novel results. The authors have considered the secondary data of firms present in the S&P BSE 100 index for ten financial years, i.e. 2010 to 2019.FindingsThis study has established that FD has no significant impact on the firm's capital structure. In addition, it has also been proved that asset size, learner's index, market capitalization and operating profit margin (OPM) have no interacting impact on the association between FD and the capital mix of firms.Originality/valueAs per the authors’ observation, no such study has been conducted till now that involves finding out the moderating impact of four different but significant factors of the business environment (assets size, learner's index, market capitalization and OPM) on the association between FD and capital structure of companies operating in a such an extensive and diverse economy.

Gender diversity as a CSR tool and financial performance in China

We utilize stakeholder, critical mass, and upper-echelon theories to investigate the effect of female representation on boards as corporate social responsibility (CSR) practices and firm performance of A-share listed companies in China. The indicators used were the proportion of female board members, the average age of female board members, the educational background of female directors, TOBIN Q, asset size, and leverage. We used fixed effects estimates and stationarity, stability, cointegration, and Hausman tests to analyze the data. We find that the proportion of female directors, the average age of female directors, and average educational level of female directors have a significant impact on CSR performance and financial performance, while CSR performance has a significant impact on financial performance. Given that emerging societies and their environments are usually the most susceptible to unethical corporate practices, our findings that female directors have a strategic role in enabling firms to manage their social responsibilities ethically and sustainable practices have important policy implications for regulators and stakeholders.

Chinese companies’ transparency under sustainable development goals: the role of asset impairment and biological assets in audit

The paper aims to analyse the role of asset impairment and biological assets in the company’s audit and to estimate the impact of asset impairment losses and biological asset scale on audit fees. The object of the investigation was A-share listed companies from 2012 to 2021 in China. The study analysed 370 listed companies to obtain 28741 observations, of which 367 listed companies had 1854 observations with biological assets. The study applied the fixed effect model, three-step mediation test, Sobel mediation test and PSM matching test. The results show that asset impairment loss and biological asset size are significantly positively correlated with audit fees, and the scale of biological assets will strengthen the positive correlation between asset impairment loss and audit fees. It is further found that asset impairment and biological assets positively affect audit fees through two parallel intermediary paths of "audit working hours" and "violations". Finally, based on the above findings, this paper also attempts to make optimisation recommendations for the four relevant stakeholders involved in the audit. This paper contributes to improving accounting standards for biological assets and enriching the research on audit pricing based on the empirical justifications of their role in the company’s audit.

STUDYING VOLATILITY IN SAUDI STOCK MARKET USING ARCH AND GARCH MODELS: A CASE STUDY OF AL RAJHI BANK

This study aims to empirically molding the volatility of the daily closing share prices of Al-Rajhi Bank listed on Saudi stock exchange (Tadawul). The study approach related to quantitative method is based on the data collected through daily closing prices of Al Rajhi Bank shares for the period from 1/02/2018 to 9/23/2022. To analyze the data and test the study hypothesis, ARCH and GARCH models were applied in this paper. According to results of heteroskedasticity tests, values of R-squared, Akaike, Schwarz, and Hannan-Quinn of ARCH models, the GARCH (1, 1) model is suitable for describing the conditional variance and the estimation. The findings indicate that the positive shocks synchronizing with favorable conditions cause less severe fluctuations than the negative shocks synchronizing with unfavorable conditions. The research has some limitations that must be noted in terms of the study sample which represents only Islamic banks and therefore, the results cannot be generalized to other banks, similarly, the heterogeneity of banks in terms of the size of assets and finance capabilities. This research emphasizes the importance of developing banking performance and enhancing investment strategies to enhance the stability of bank share prices, especially during crises. Based on the results, investors may have the incentive to buy shares of Islamic banks according to stock price indices characterized by stability in the face of economic shocks. This study is considered as one of the main studies contributing to the analysis of the volatility of the daily closing share prices of Islamic Banks listed on the Saudi stock exchange (Tadawul).