Business Financial Performance Research Articles

Manajemen Risiko Bisnis BMT di Tengah Pandemi COVID-19

The economic contraction in the MSME (Micro Small and Medium Enterprises) sector during the Covid pandemic directly impacted financial business performance. On a micro scale, BMT (Baitul Maal wat Tamwil) as a sharia microfinance institution is affected by the weakening of economic activity in the MSME sector. This is understandable because in its activities, BMT makes MSMEs its business partners. From a business aspect, the impact experienced by BMT is the emergence of various risks; increasing problematic financing, liquidity and operational risks. The results of this qualitative research show that; Firstly, business risks that arise at BMT NU Jawa timur Balung Branch and BMT UGT Nusantara Rambipuji Jember include financing risk, operational risk and liquidity risk. Financing risk is characterized by a high number of problematic financing. Meanwhile, operational risks are characterized by restrictions on access to the office, physical distancing, and increased operational costs. Meanwhile, liquidity risk is characterized by an abundance of funds in cash. Second, risk management at BMT NU Jatim Balung Branch and BMT UGT Nusantara Rambipuji Jember is carried out sequentially starting from risk identification, measurement, analysis and control activities. Based on this process, tactical steps are then developed to handle each aspect of risk. Financing risks include financing moratorium steps, intensive collection, restructuring and creating reserves for losses. Operational risks are approached by the issuance of new rules regarding office operating systems and rules related to the implementation of Health procedures.

Credit Cost Management and Financial Performance of Hotel Businesses in Kenya

This study explores the impact of credit cost management on the financial performance of businesses in Kenya's hospitality sector. Specifically, it examines how interest rates, loan collateral, and loan repayment terms influence the profitability and financial stability of small and medium-sized enterprises (SMEs) in the industry. The study is supported by Loanable funds theory, Credit scorecards theory and Tradeoff theory. Through a desk review of existing literature, the study identifies that high interest rates increase the cost of borrowing, creating financial pressure on businesses, while lower rates support profitability. Loan collateral is found to be a major determinant of access to credit, with businesses that provide sufficient collateral securing loans more easily. Flexible loan repayment terms contribute to better cash flow management and liquidity, improving overall financial performance. The study concludes that effective credit cost management is critical for the success of hospitality businesses and recommends that financial institutions and policymakers collaborate to provide more favorable credit terms, including lower interest rates, reduced collateral requirements, and more flexible repayment options. Increased transparency in loan agreements and government interventions to support SMEs are also essential for fostering financial growth in the sector.

Significance of Subsidiaries for Improving Financial Performance in the Sugar Industry: A Quantitative Analysis

One of the greatest plants today for converting solar energy into biomass and sugar is sugar cane. It is a plentiful supply of fuel, chemicals, fodder (green cane plant leaves and tops, bagasse, molasses, and to some extent press mud), food (sucrose, jaggery, and syrup), fiber (cellulose), and other nutrients. Bagasse, molasses, and press mud are the principal byproducts. Bangladesh has been farming sugarcane for the production of gud, sukker, and khandeswari since very ancient times. These sweeteners can also be made from palm and date juice. The objectives of the study were to examine the significance of subsidiaries for improving financial performance in the sugar industry. The utilization of secondary data helped researchers accomplish their goals. Multiple regression analysis will be employed to assess secondary data gathered from diverse sources in order to uncover significant predictors of the business's financial performance. The study revealed that the distillery unit significantly increases net profit every financial year, recovering losses from other units like sugar and agro-firms. The sugar division loses money each fiscal year, while the agro-farm unit gradually loses money. The fertilizer unit earns a significant profit, contributing to minimizing the losses of other units like sugar and agro-firms. Only Carew & Company (Bangladesh) Limited has a distillery plant out of the 15 sugar mills. [Keywords: Byproduct, sugar mills, distillery unit, cost minimize and sugarcane.]

Pengaruh Green Accounting, Intellectual Capital terhadap Kinerja Keuangan Perusahaan Sektor Kesehatan di Indonesia

This study's primary goal is to examine how intellectual capital and green accounting affect the financial performance of health sector businesses. The value added intellectual coefficient (VAIC) is used to quantify intellectual capital, and environmental expenses and eco-friendly products are used to measure green accounting. The analyzed data consists of secondary data from the annual reports of healthcare companies listed on the Indonesia Stock Exchange (IDX) for the period from 2019 to 2022. Multiple linear regression method was employed in the data analysis. The study's conclusions suggest that while green products and environmental cost have no effect on a company's financial performance, intellectual capital has a favorable effect on the financial performance of businesses in the health sector. These results underscore the importance of effective management of intellectual capital to enhance financial success in the healthcare sector.

Perubahan Kombinasi Bisnis Implementasi Dan Dampak PSAK 22 Terhadap Kinerja Keuangan Perusahaan

Using a literature research methodology, this paper investigates how business combination accounting was implemented both before and after PSAK 22, which is now known as PSAK 103 on Business Combinations. This research analyzes profit margin, return on equity (ROE), and return on assets (ROA) to assess the impact of PSAK 22 on the business's financial performance. Prior to PSAK 22, businesses often employed the "purchase method" or "pooling of interest." Results from prior research indicate that ROA, ROE, and profit margins are significantly impacted by business combinations. Although financial performance is frequently improved by mergers and acquisitions, the outcomes differ among industries. This article requires a broader range of information in order to function as a reference for future study on business combinations with PSAK 22/103 case studies and more diverse variables.

The Effect of Covid-19 on Business Financial Performance

The COVID-19 pandemic has had a significant negative impact on the Turkish economy and the global economy. Turkey’s economy contracted by 10.2% in 2020, recording the most significant decline since the 1950s. The effects of the epidemic could also be observed on companies which had to close or lay off staff. This study aims to examine the financial impact of the COVID-19 pandemic on the forest industry by revealing the financial performance of publicly traded forest industry companies in Turkey before and after COVID-19. For this purpose, the financial performances of 11 companies operating in the forest products industry in Turkey and registered in the BIST XKGT index in the 2017-2022 period were examined. In this context, we used the integrated Entropy-CP method. In the initial phase of analysis, criteria weights were determined using the entropy method to assess the significance levels of the financial ratios. Subsequently, financial success rankings were generated by employing the CP method. In general, it was observed that the weight values of the criteria were close to each other. As a result, it was determined that the companies showed the best average financial success in 2022 and the lowest average financial performance in 2017. Following the pandemic’s occurrence, some companies’ performance improved, while others experienced a partial decline. Therefore, no general improvement or worsening trend could be detected during the years of the COVID-19 pandemic. In the context of this study, it was concluded that the pandemic did not affect the financial performance of companies operating in the forest products sector.

EFFECT OF TAX PLANNING, CAPITAL INTENSITY AND LEVERAGE ON COMPANY FINANCIAL PERFORMANCE (EMPIRICAL STUDY OF MANUFACTURING COMPANIES IN THE BASIC MATERIALS SECTOR LISTED ON THE INDONESIAN STOCK EXCHANGE 2017-2021).

Abstract Purpose - The aim of this research is to see how tax planning, capital intensity, and leverage affect business financial performance using data from basic materials industrial manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021. Design/methodology/approach - This research uses a quantitative multiple linear regression model. Purposive sampling was used and resulted in 47 companies with a total of 162 observation data. Data analysis was carried out using SPSS 25. Finding – Based on research findings, leverage has a negative impact on the company's financial performance, although capital intensity and tax planning both significantly improve financial performance. Originality – Paper Type – Research Paper

MAXIMIZING RETURNS: UNVEILING THE IMPACT OF LIQUIDITY, EFFICIENCY, AND DIVIDEND POLICY ON ASSETS

With an emphasis on Return on Assets (ROA), this study examines the interdependent dynamics of liquidity, efficiency, and dividend policy on business financial performance. With a quantitative research design, the study seeks to clarify how these components together affect organizational effectiveness. Regression analysis is used in the study to look at the associations between the dependent variable, ROA, and the important independent variables, current assets, quick ratio, liquidity, and dividend, using data from ITC Ltd. that was obtained from Moneycontrol over a five-year period (2019–2023). The findings show a strong relationship between liquidity, efficiency, dividend policy, and return on assets (ROA), with liquidity standing out as the main factor and efficiency and dividend policy following closely behind. The results highlight how crucial these variables are in determining financial performance and provide insightful information for organizational resource allocation and strategic decision-making. The study does, however, admit certain limitations, such as the possibility of wider generalizability and the dependence on data from a single organization. Further research is recommended to increase the sample size, carry out longitudinal studies, and investigate qualitative techniques in order to gain a deeper comprehension of and identify the causal factors behind the dynamics of financial success.

How Can We Remove Psychological Entrepreneurship Barriers on Entrepreneurship Intention for Health Organizations in the Future?

Entrepreneurial orientation significantly influences business financial performance, particularly in global markets, making it pivotal across economies. Developed nations provide a conducive environment for entrepreneurship, supported by educational systems and skill development programs. Conversely, in developing countries, cultural and social disparities create unique challenges, shaping entrepreneurial intentions. Psychological barriers such as risk aversion, fear of failure, and resistance to change hinder potential entrepreneurs, particularly in health science faculties. A study conducted in Turkey aimed to explore these barriers among health science students. Data collected from 788 students revealed that psychological factors explained 72% of entrepreneurial intentions. Regression analysis confirmed the significance of risk avoidance, fear of failure, attitude towards change, and stress avoidance in shaping intentions. Despite these barriers, heightened entrepreneurial intentions among health students were associated with greater success in overcoming obstacles. The findings emphasize the importance of addressing psychological barriers in fostering innovative and entrepreneurial healthcare professionals. By understanding these dynamics, educational institutions, policymakers, and healthcare practitioners can better support the development of an entrepreneurial healthcare workforce. The intersection of healthcare and entrepreneurship presents opportunities for transformative solutions, potentially enhancing patient outcomes and advancing the healthcare sector. Despite challenges, emerging trends suggest a growing interest in leveraging innovation for positive change in healthcare, highlighting the potential for impactful contributions to the industry’s evolution.

How Tax Compliance, Audit Quality, and Financial Reporting Quality on Corporate Financial Performance in Manufacturing Companies

Within the framework of Indonesian manufacturing enterprises, this study explores the intricate links between tax compliance, audit quality, financial reporting quality, and firm financial performance. Using Structural Equation Modeling with Partial Least Squares (SEM-PLS), a sample of 175 firms was examined. The effect of these variables on financial performance was evaluated using correlation analysis, hypothesis testing, and descriptive statistics. The findings show a strong positive correlation between business financial performance, financial reporting quality, audit quality, and tax compliance. This study adds to the body of knowledge by providing complex insights specific to the Indonesian manufacturing industry. These insights can be used by investors, policy makers, regulators, and firm management to enhance decision-making procedures and promote sustainable financial practices in the sector.

Organizational innovation in the relationship between total quality management and business financial performance: case of coffee processing firms in Guji zone, Ethiopia

Organizational innovation in the relationship between total quality management and business financial performance: case of coffee processing firms in Guji zone, Ethiopia

THE EFFECT OF BIG DATA APPLICATION ON FINANCIAL PERFORMANCE: COMPANY SIZE AS A MODERATING VARIABLE

This research aims to determine the effect of implementing big dataon a company's financial performance by considering company size as a moderating factor. This research focuses on the banking sector, which is publicly traded on the IDX. The sampling technique used was purposive sampling over three years (2020-2022). 46 out of 47 companies were selected for sampling and observation. The analysis tool uses Eviews 12 to perform panel data regression. Research findings show that the use of big data has an adverse impact on the financial performance of businesses. Apart from that, the size of the company is also considered not to have the ability to mitigate the impact of the use of big data on the company's financial performance.

<p>Study on the Impact of Managerial Entrenchment and Corporate Governance of Firm Performance and Capital Structure</p>

The purpose of this paper is to identify the presence of managerial entrenchment, measure its degree, and establish its relationship to corporate governance, capital structure, and business performance. This paper focuses equal emphasis on managers' personal qualities, such as age and tenure, as well as ownership structures, such as management ownership and block holder ownership. The research also investigates entrenched managers' preference for debt issue over equity issuance, i.e., the trend and pattern of financing capital structure. This paper also examines the impact of corporate governance on business financial performance. The norms and regulations that the corporation follows for its operation are also assessed in regard to management entrenchment and capital structure. In Indian, there isn't much paper

Digitalization and Firm Performance: Empirical Evidence from Forbes-listed Companies

As the world goes digital, many companies have found that their performance improves when they digitize their operations. This is especially true in light of the COVID-19 pandemic, as companies must rely more on digital tools to survive. Our paper aims to examine the connection between digital competitiveness and the financial performance of 86 digital businesses at the country level before, during, and after the COVID-19 pandemic over the period 2017--2021. Unlike previous findings that relied on qualitative methods, our research relies on quantitative methods. More precisely, we empirically examine the impact of digital competitiveness (i.e., an index) on financial performance (i.e., measured by return on assets) through linear regression models and panel data regressions for three specific periods (2017-2019 pre-pandemic, 2020 pandemic, and 2021 post-pandemic). We found that COVID-19 allows firms to adopt digitalization. More specifically, comparing the three periods, we discovered that digital competitiveness positively influences business financial performance in the post-Covid era. Looking ahead to the post-Covid world, it is clear that companies must prioritize digital competitiveness to ensure their long-term success. Governments can learn important lessons from this research on how to help companies digitize."

E-Commerce Use and Financial Performance: Exploring The Moderating Role of Entrepreneurial Competencies in Palestine Stock Exchange Companies

The study aims to identify the role of e-commerce use through the efficiency of entrepreneurial competencies in directing the financial performance of companies listed on the Palestine Stock Exchange via financial performance indicators connected to e-commerce: sales value, and company value. The data for the study sample is gathered from the financial reports of all 49 companies listed on the Palestine Stock Exchange for the four sectors (commercial, service, industrial, and investment) over the 11 years of the study period, 2010 to 2020, resulting in a hypothetical sample size of 528 observations (11 years x 49 companies). A quantitative descriptive-analytical approach was employed, and the data was analyzed using SPSS and Stata software. The outcomes of the study have revealed a positive and significant relationship be- tween the employment of electronic commerce and the financial performance of businesses. In addition, it has been observed that Entrepreneurial competencies play a significant moderating role in the relationship between the use of e-commerce and the financial performance (sales value, company value) of companies listed on the Palestine Exchange. This is the first study to investigate Entrepreneurial competencies as a moderator between e-commerce utilization and business financial performance, based on previous knowledge in the field. The empirical findings of this study give managers and practitioners useful theoretical and practical insights for understanding the relationship between the deployment of e-commerce across all industries in hopes of enhancing company results.

Research on Enterprise Financial Management Strategy and Framework for Digital Transformation

Abstract In the wave of the information age, enterprises must undergo digital transformation in order to respond to and implement the national development strategy and improve their core competitiveness. This paper constructs a strategic framework for enterprise financial management in digital transformation and evaluates the effects of digital transformation on profitability levels and operating costs. A theoretical model is created for the impact of digital transformation on enterprise financial management; research hypotheses are proposed, research variables are established, and research hypotheses are tested for authenticity. After the implementation of digital transformation, the subject enterprise M Group has not maintained its net profit growth for a long time. However, it has been on an upward trend from 2014 to 2016. The growth rate of net profit is expected to be within 20% from 2017 to 2023, with room for further development. In the benchmark regression of the model, it was found that there is a significant positive correlation between the index of financial digital transformation and the financial performance of businesses, with a coefficient of 0.0154 at the 5% level. This means that the more businesses digitize their finances, the better their financial performance.

Improved Governance of Business Financial Reporting in MSMEs CV Gayatex Indo

In addition, it is also to increase knowledge and skills in managing CV finances. Gayatex Indo complies with exist-ing guidelines. The method used in this community service activity is through the lesson study method using three stages, namely planning, implementation and reflection. The implementation method is manifested in mentoring, consultation and discussion activities. The result of this community service activity is to improve the knowledge and skills of partners in this case CV.Gayatex Indo in compiling and managing its business financial statements to be more effective and efficient so that it can help im-prove business financial performance and strengthen busi-ness position in the global market. By implementing good financial governance, it will make it easier for MSMEs to develop their business. For this reason, the importance of implementing financial statements is applied properly and in accordance with established regulations.

Impact of Corporate Social Responsibility on Financial Performance of Production Enterprises Listed on Ho Chi Minh Stock Exchange (Hose) – Viet Nam

Purpose: The objective of this research was to analyze the approaches related to that the impact of each aspect of social responsibility on the financial performance of businesses of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam. Theoretical framework: The Stakeholder Theory has explained and justified the need for implementing Corporate Social Responsibility (CSR) with stakeholders. Results and conclusion: The results showed that the impact of each aspect of social responsibility on the financial performance of businesses, the regression results reveal that only the environmental responsibility index has a favorable effect on the Return on Assets (ROA) of the company. However, aspects of social responsibility towards employees, the community, and customers do not affect financial performance. Research implications: The research results on the impact of corporate social responsibility on financial performance in the annual reports of production companies listed on the Ho Chi Minh City Stock Exchange in Vietnam indicate that social responsibility activities and information disclosure have a positive influence on profitability and contribute to the sustainable development of the company. Originality/value: Additionally, the results also demonstrate that company-specific factors, such as company size and financial leverage, significantly impact the company's profitability.

Impact of Organizational Culture on the Financial Performance of Listed Companies in Vietnam - A Case Study of the Logistics and Transportation - Warehouse Sector

The study utilizes data collected from annual reports to investigate factors influencing the financial performance of businesses in the transportation and warehouse sector during the period from 2019 to 2021, specifically focusing on organizational culture factors. To achieve the research objectives, various estimation methods were employed, including Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM) regression models. Through relevant tests, the study determined that the FEM model was most suitable. Subsequently, the model's shortcomings were addressed, and adjustments were made using Feasible Generalized Least Squares (FGLS) method. Based on the estimation results, the author identified statistically significant characteristics, including the market culture and hierarchical culture, which positively influence the financial performance of companies as measured by the Return on Assets (ROA) ratio.

UMKM Empowerment through Training & Assistance in Preparing Simple Financial Statements at UMKM Adok Furniture

The implementation of community service aims to empower UMKM through training and assistance in preparing simple financial statements. This activity was carried out for UMKM actors Adok Furniture Sentul Village, Babakan Madang, on July 21 to August 23, 2023. The implementation method is socialization, training and mentoring. The result of this activity is that Adok Furniture MSME actors can understand and compile cost of goods order cards, debt cards, accounts receivable cards, cash book, raw material stock cards, income statements, statements of financial position, and notes to financial statements. Previously, UMKM actors had not prepared financial statements for their businesses. Through this training and mentoring, Adok Furniture UMKM actors can find out the right cost of goods produced and selling prices, manage accounts receivable and raw material stocks, and find out the condition of business financial performance.