Changes In Profitability Research Articles

Determinants of Bank Closures: What Ensures Sustainable Profitability in Mobile Banking?

Owing to the recent increase in mobile banking customers, studies exploring self-service channels and customer responses as distribution channels in the retail banking industry are also rapidly expanding. Moreover, with the emergence of big data and a series of artificial intelligence (AI) technologies, customer pattern analysis using deep learning, insurance fraud prevention, software development and various types of blockchain-based FinTech technologies, offline banks are disappearing. Accordingly, many commercial banks are attempting to find technological alternatives. However, maintaining a profitable bank branch is a crucial factor in the relationship between service quality and customer satisfaction because excellent service quality prevents existing customers from leaving. This study sought to quantitatively prove the change in customer service quality and profit due to the introduction of technology in the financial industry. We microscopically compared the effects between bank branch closures and changes in net profit using a time-series analysis. Specifically, we quantitatively analyzed actual customer attrition behavior with a time-series analysis across the three quarters before and after the closure of 88 branches of major commercial banks in South Korea in the Seoul metropolitan area and nearby cities. The findings prove that branch closures and multi-channel effects in the financial sector are gradually being resolved through immediate technology acceptance, contrary to popular concern.

Changes in Profit For IDX-Listed Cigarette Companies Between 2018 and 2021 and Their Relative Importance to Net Profit Margin, ROE, and ROA

This study aims determine and analyse the impact of Net Profit Margin, Return On Equity, and Return On Assets on the profit changes of BEI-listed tobacco companies from 2018 to 2022. Multiple linear regression analysis, the normality test, the autocorrelation test, the multicollinearity test, the heteroscedasticity test, the coefficient test, and the t test are employed as analytic instruments.According to research, Net Profit Margin (NPM) has a significant impact on the Changes in Profits of Cigarette Companies on the IDX in 2018-2021, while Return On Assets (ROA) and Return On Equity (ROE) do not. Net Profit Margin (NPM) has a significant impact on changes in profit; when NPM is high, a company is able to generate high profits from each transaction and/or reduce costs, ensuring that profit growth will continue to increase. Return On Assets (ROA) and Return On Equity (ROE) have no significant effect on changes in company profits because the increase in Return On Assets (ROA) and Return On Equity (ROE) is not only caused by increased profits generated by the company, but can also be caused by a decrease in the total assets or equity of the company even though the profits generated tend to remain in the same period, so that under these conditions the ratio of profits to total assets and equities tends to remain constant.

Effectiveness of the Student Entrepreneurship Development Program at Muhammadiyah University of Sidoarjo

This study purposed was to determine the effectiveness of the Entrepreneurial Student Developmen Program at Universitas Muhammadiyah Sidoarjo. This study used qualitative descriptive research type. Data collection techniques using the method of observation, interviews, and documentation. Data analysis techniques using data reduction steps, data presentation, and conclusions. The results showed from the indicators of measuring the effectiveness of Understanding of the program shows that the higher education implementers understand their duties and responsibilities in accordance with their respective main tasks and functions, besides that students also understand what requirements are needed in managing student entrepreneurship. Right on target, it can be said to be effective in achieving predetermined targets, namely being able to exceed the target of the Key Performance Indicators (IKU), namely forming entrepreneurs who have business legality.Timeliness, shows that it is said to be effective because from the start the activity, implementation and reporting went according to a predetermined timeline. The achievement of the goals went well, this can be seen in the program achievements, starting from product development, human resource development and managing business legality from the student entrepreneur implementing team.Real Change, said to be effective, can be seen in being able to make entrepreneurial opportunities for students, having confidence in carrying out entrepreneurship, expanding market reach and the addition of business profits earned. By fulfilling the above effectiveness indicators, the Student Entrepreneurial Development Program (P2MW) at the Universitas Muhammadiyah Sidoarjo runs effectively. Highlights: Understanding and fulfillment of program requirements by higher education implementers and students. Achievement of predetermined targets, including exceeding Key Performance Indicators (IKU) and forming entrepreneurs with business legality. Timely implementation, reporting, and successful goal achievement, leading to real change in entrepreneurial opportunities, student confidence, market reach, and business profits. Keywords: Entrepreneur, Student, Development Program, Effectiveness, Universitas Muhammadiyah Sidoarjo

Evaluation of business profitability indicators as an indicator of the efficiency of sales activities of pharmaceutical enterprises

The article defines that today the main tool that determines the results and effectiveness of any organization is an effective system of sales activity, which includes both the main interacting elements and the methods based on which the sales organization takes place. Estimating the business profitability of pharmaceutical enterprises makes it possible to quickly react to changes occurring in the surrounding enterprises, which affect the effectiveness of sales activities. It was also noted that the modern sales system needs constant improvement based on the assessment of business profitability indicators. The main factors that affect the profitability of pharmaceutical enterprises are considered, it is the timely determination of the influence of external and internal factors that will make it possible to predict threats and realize the opportunities of the enterprise. and the expediency of determining their impact on profitability is substantiated. It was determined that the assessment of business profitability should be carried out using indicators of the level of profitability, which make it possible to determine the profitability of the enterprise from various positions and are formed in accordance with the interests of market subjects, market exchange. It is advisable to evaluate the profitability of the products sold using the following indicators: gross profitability of the products sold, operating profitability of the products sold, and net profitability of the products sold. The conducted assessment of the profitability of pharmaceutical enterprises made it possible to determine that for further, successful sales activities, pharmaceutical enterprises should focus on maintaining profitability indicators, due to rapid response to changes occurring around the enterprise. Timely response to changes in the company's profitability will help to significantly minimize the impact of adverse factors in conditions of business instability. Reserves for increasing the profitability of pharmaceutical enterprises can be an increase in the volume of product sales, a decrease in the cost of products sold a decrease in sales and administrative costs. Keywords: sales activity, profitability, profitability, product realization, pharmaceutical enterprises, profitability assessment, effectiveness of sales activity.

Participatory demonstration of newly recommended nitrogenous fertilizer application rate on maize and evaluation of its effect on maize Productivity case of Halaba zone SNNPR, Ethiopia

Nutrient deficiency is one of among major problems constraining the development of economically successful agriculture. Specifically, this resulted from lower crop performance. To enhance crop performance, the application of the newly recommended fertilizer rate is among the necessary measures. Hence, this pre-extension demonstration of the newly recommended fertilizer rate on maize and evaluated the change in its profitability. The demonstration was conducted at two farmers’ training centers and ten beneficiary farmers’ fields. Partial budget analysis was employed to evaluate the change in profitability from the new recommended rate. Based on the result, the average yield performances that were obtained from farmer's fields were 40.0 Q ha-1, 29.4 Q ha-1 of the new rate, and blanket recommendation rate, respectively. In addition, the yields obtained from the farmers’ training center were 47.0 Q ha-1 and 33 Q ha-1 of the new recommendation rate and blanket recommendation rate, respectively. This might be due to the effective monitoring and follow-ups in the farmers' training center than the farmers’ field. The result of the partial budget analysis revealed that adopting of newly recommended rate increases the overall profit, which is 8680 ETB per hectare. Therefore, it is better if increase the adoption rate of the newly recommended fertilizer rate on maize to improve the production and productivity of maize producers. Int. J. Agril. Res. Innov. Tech. 12(2): 96-100, December 2022

The Effects of Changes in Financial Performance on Value Creation in Digital Transformation: A Comparison with Undigitalized Firms

We attempted to analyze the effect of changes in financial performance after digital transformation on firm value creation, compared to undigitalized firms for digitally transformed firms listed in the KOSPI market in Korea. To this end, we conducted an independent sample t-test and a multivariate regression analysis for a total of 12,143 firms listed on the KOSDAQ market, from 2011 to 2021. As a result of the empirical analysis of our study, it was confirmed that digitally transformed firms showed differential results in changes in financial performance compared to undigitalized firms. Overall, changes in profitability, stability, and growth are excellent, but in some aspects of activity and productivity, it is confirmed that they are weaker than undigitalized firms. In addition, it was confirmed that there was a difference in the change in the current ratio and the total asset turnover rate in the changes in the financial performance affecting the value creation. Nonetheless, there were insignificant differences in other variables.

ПОДАТКОВЕ ПЛАНУВАННЯ ТНК НА ЗАСАДАХ РИЗИКО-ОРІЄНТОВАНОГО ПІДХОДУ В УМОВАХ ПРОЕКТУ BEPS ТА ДІДЖИТАЛІЗАЦІЇ ЕКОНОМІКИ

The article investigates the peculiarities of the transnational corporations (TNC) tax planning in the context of the base erosion and profit shifting (BEPS) project and economic digitalization. The authors conducted an analysis of the rules that regulate the application of risk management in TNC activities, and they justified the feasibility of using SWIFT and matrix methods for assessing tax risks in the process of TNC tax planning. A model of TNC tax planning in the context of economy digitalization and BEPS project, which allowed for increased tax planning effectiveness by obtaining objective and sufficient information for the construction of possible scenarios of the companies' operations, is proposed in the article. The model includes stages of the tax planning process, namely: tax landscape analysis for countries of registration, countries of digital presence, and international taxation rules; constructing a tax risk trigger chain for the company; assessing the probability and impact of tax risks; identifying and selecting tax risk management options; integration of tax risk management in the business scenario. The conducted research allowed us to predict what would happen if tax rates, conditions for determining the object of taxation, or other taxation conditions in the TNC’s country of registration or presence changed. In the article, it was proposed to use the results of comparing corporate performance indicators (the rate of change in profit, return on assets, return on capital, return on sales) and indicators characterizing tax consequences (the rate of change in tax liabilities) as criteria for selecting tax risk management options for TNC. The authors defined the mechanism for choosing the tax risk management methods in the context of the economic digitalization and the particular BEPS project, which allowed conducting the real-time control not only by TNC, but also by tax control bodies, auditors, financial consultants, and representatives of international organizations, simplified communication between them, and reduced subjectivity when making any decisions.

Biomethane as an energy resource for achieving sustainable production: Economic assessments and policy implications

Circular bioeconomy models aim to reduce dependence on non-renewable and unsustainable use of resources, involving also the inclusion of gas in the green taxonomy. Thus, biomethane represents a flexible and clean resource for combating climate change. This work aims to show that biomethane is a feasible energy resource that can meet sustainable production requirements. We perform an economic analysis on biomethane plants, obtained from the organic fraction of municipal solid waste (OFMSW) varying from 100 to 500 m 3 /h capacity, based on Net Present Value for two distinct policy scenarios in Italy: i. Certificate of Emission of Biofuel in Consumption (Baseline Policy Scenario) and ii. Tariff Premium (Alternative Policy Scenario). In addition, the Break Even Point will be calculated for the critical variables. The results show that the cost of biomethane production varies from 0.54 to 0.78 €/m 3 and the profitability changes depending on the policy scenario. The 200 m 3 /h plant is the one in which the minimum profitability condition is achieved, which significantly depends on variables such as, the size of the plant, the type of incentive, the value of the incentive, the selling price of biomethane, and the net revenue associated with the treatment of OFMSW. In addition, this work quantifies the potential for unused biomethane in Italy associated with OFMSW, which ranges from 464 to 678 million m 3 , showing that could generate economic profits from about 41 to 2068 million € and from about 59 to 3027 million € in two different scenarios (characterized by a higher rate of separate collection). Policy implications are provided to enable further penetration and development of this renewable resource.

Связь отложенных налогов с начислениями по текущему налогу на прибыль

Introduction. Accounting standards currently apply the principle imposing a 100 % probability of the existence of tax cash outflows on balance sheet deferred tax liabilities. However, this relationship has not been proven either theoretically or empirically in the accounting research literature, which determines the relevance of this study. Purpose. The paper aims at testing the hypothesis which states that the reversal of deferred tax liabilities always increases income tax accruals. In order to achieve this goal, among other things, the relationship between the reversal of deferred tax assets and the change in current tax accruals was examined. Materials and Methods. Traditional statistical analysis and standard techniques of econometric analysis were used – linear regressions and correlation matrices were constructed. Hypothesis was tested in the Russian organizations which reported under the 2012–2018 Russian accounting rules. Results. At the “assets” scaling base, a 1 % increase in taxable temporary differences on average reduces taxable profit of the Russian organizations by almost 60 % (with a one-year lag – by 43 %). Restoration of deductible temporary differences at the “accounting profit before taxation” scaling base by 1 % on average leads to a 53.7 % decrease (with a one-year lag – by 67.8 %) in the taxable profit of the Russian organizations. Conclusion. Recovery of an active deferred tax position has a more tangible impact on the change in taxable profit than reversal of a passive position. The developed methodological schemes assess the deferred tax position of companies, as well as compare them with each other by the level of accruals of profit tax and determine the reasons for their relative overstatement or understatement. Theoretical significance consists in the refutation of the principle laid down in paragraph 16 of IAS 12 Income Taxes, which indicates the relevance of clarifying the economic content of deferred taxes in accounting standards.

Analysis of Profitability Ratio in Predicting Profit Changes in PT. Bank Rakyat Indonesia (Persero) Tbk

Bank Rakyat Indonesia (Persero) Tbk is one of the largest banks in Indonesia. This study aims to determine and identify the ability of the profitability ratio in predicting profit changes at PT Bank Rakyat Indonesia (Persero) Tbk. ROA, ROE, and NPM are rations used to measure the ability to predict profit changes in this study. The data collection technique used is documentation. The population in the financial statements of PT Bank Rakyat Indonesia (Persero) Tbk., and the sample is PT Bank Rakyat Indonesia (Persero) Tbk., reports for 8 (eight) years calculated quarterly. The results of the research had tested classical assumptions such as normality assumption, multicollinearity assumption, heteroscedasticity assumption and autocorrelation assumption. By applying multiple linear regression techniques in the process of data analysis. The results showed that partially Return on Assets (ROA) was significantly unable to predict profit changes, Return on Equity (ROE) was significantly able to predict profit changes, and Net Profit Margin (NPM) was significantly able to predict profit changes. Simultaneously, Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) was significantly able to predict profit changes.

RISK ANALYSIS OF A SOCIAL INVESTMENT PROJECT

"Social projects are characterized by a low level of income from implementation, but they have a very pronounced social return in favour of the welfare of the population of the region, city, district. However, such projects are also subject to risks, which level needs to be determined in order to take various corrective actions on projects. Such activities can be: conducting additional market research, choosing alternative areas for construction, choosing another contractor, etc. Also, for each project, several examinations are made, which are aimed at identifying risks based on the expert opinions of specialists, a number of indicators are calculated, one of which is budgetary and social efficiency. In the article, we will consider the main causes of project risks, types of risks, current methods for assessing the risks of social projects, and describe the boundaries of risks that affect the choice of risk management policy and monitoring system. consider The basic rules for identifying and assessing risks will be considered, as well as the rules for conducting economic appraisals of projects. Using the example of an investment social project, we will calculate indicators of sensitivity to changes in price, cost and sales volume, and also compile a matrix of profit changes under the influence of prices in relation to a certain level of risk. Keywords: social projects, project risks, risk level, causes of occurrence, efficiency assessment, indicators of sensitivity."

ІНТЕГРАЛЬНЕ ОЦІНЮВАННЯ ФІНАНСОВОЇ СКЛАДОВОЇ ЕКОНОМІЧНОЇ БЕЗПЕКИ МАШИНОБУДІВНИХ ПІДПРИЄМСТВ

The paper examines the peculiarities of the financial component of economic security of the leading machine-building enterprises of the Vinnytsia region. The basic principles of forming the financial component of the enterprise's economic security have been revealed. An analysis was carried out using the integral indicator of the financial component of economic security based on a set of indicators - return on capital, capital adequacy ratio, coverage ratio, quick liquidity ratio, absolute liquidity ratio, autonomy ratio, financial stability ratio, long-term financial independence ratio, equity maneuverability ratio, ratio of turnover of receivables and payables, coefficient of change of turnover of working capital, coefficient of change of balance currency, coefficient of change of net profit, return on equity, return on assets, return on sales. The preliminary results of the enterprises' activities and their impact to the level of the financial component of the economic security of the enterprises were analyzed. A significant excess of deviations of the integral indicator of financial security of PJSC "Vinnytsia Research Plant" was established, which was due to profitable work results due to stable orders from buyers, which were ensured by high quality products. The positive results of PJSC "Vinnytsia Zavod "Mayak" were ensured due to the stable growth of such indicators as the absolute liquidity ratio, the autonomy ratio, the financial stability ratio, and the ratio of changes in net profit. It has been proven that these two enterprises carry out stable and economically efficient activities, and therefore, the results can be interpreted as an indicator of a high level of management and the financial component of the economic security of these enterprises. It has been investigated that the indicator of financial security of PrJSC "Kalynivskyi engineering plant" and PrJSC "Mohyliv-Podilskyi engineering plant" shows slight deviations compared to the average value, which requires more detailed studies of the specific features of the work of these enterprises in order to identify the set of factors that shape these are the results of the work.

Robust nonparametric analysis of dynamic profits, prices and productivity: An application to French meat-processing firms

AbstractAppropriately considering adjustment costs, this paper develops a robust nonparametric framework to analyse profits, prices and productivity in a dynamic context. Dynamic profit change is decomposed into a dynamic Bennet price indicator and a dynamic Bennet quantity indicator. The latter is decomposed into explanatory factors. It is shown to be a superlative indicator for the dynamic Luenberger indicator. The application focuses on 1,638 observations of French meat-processing firms for the years 2012–2019. Using m-out-of-n bootstrapped data envelopment analysis, we obtain robust estimates and confidence intervals. The components of dynamic productivity growth fluctuate substantially. However, these fluctuations are often statistically insignificant.

Faktor-Faktor Yang Mempengaruhi Perubahan Laba Pada PT. Wijaya Karya Bangunan Gedung Tbk. Yang Terdaftar Di Bursa Efek Indonesia

Competition in the business world, which is getting tighter and tighter so fast, has a huge impact on the development of the current capital market, especially in the business activities of large and small industries. This study aims to determine the effect of Current Ratio (CR), Debt to Equity Ratio (DER), Return On Assets (ROA), and Total Asset Turn Over (TATO) on changes in profits at PT. Wijaya Karya Gedung Tbk. Methods of data used is secondary data. The data analysis technique used in this study was multipke linear regression analysis using the SPSS version 24 statistical calculator. The results showed that the current ratio has positive effect on changes in earnings. Meanwhile, Debt to equity ratio (DER), Return on assets (ROA) and Total asset turnover (TATO) have no significant effect on changes in earnings.The coefficient of determination R Square is 0,816 indicating that changes in PT. Wijaya Karya Gedung, Tbk is determined by the current ratio, debt to equity ratio, return on assets, and total asset turnover of 81,6%, while the remaining 18,4% is determined by other factors outside the independent variabes in this study.

Data mining application with machine learning algorithms to manage interest rate risk

In trade, the risks taken may increase the expected income; however, they may also cause large amounts of losses as well. Banks transfer the capital and the deposits they collect from their clients to the individuals or institutions in need of profit, taking certain risks into account. One of the important risks taken in this process of capital transfer is the market's change in interest or profit share rates. If the bank transfers the deposit collected with a certain commitment to the market at a lower rate, it will make a loss. Models for predicting future interest or profit share rates gain importance for preventing this situation. The aim of this study is to determine which variables will be taken into account for the loan interest rate that banks will offer to their customers during the lending process, and to create a machine learning model that can predict the loan interest rate that the bank will offer to its customers by using these variables. Multiple Linear Regression analysis was performed to demonstrate the relationship between the variables selected based on the literature review, expert opinions, and the interest rate. In order to facilitate decision-makers in practice, Random Forests, Decision Trees, K-Nearest Neighbours (KNN), Artificial Neural Networks (ANN), and Support Vector Machine (SVM) algorithms from machine learning algorithms were compared by using the prediction model. Accuracy Rate, Cohen's Kappa, Precision, Sensitivity, and F-Measure measurements were used to compare the algorithms used in the study. According to the analysis results, it was observed that the Random Forest algorithm was more successful on the first model consisting of weekly data. The Decision Tree algorithm succeeded more on the second model consisting of monthly data prediction performance. In the model consisting of weekly data, USD Selling Price, Stock Index (BIST100), and Central Bank Gold Reserve from the Multiple Linear Regression variables were found significant in affecting the interest rate.

Revisiting mean reversion in profitability and earnings: evidence from India (2007–2020)

PurposeThe purpose of this article is to revisit the mean reversion in profitability and earnings among Indian-listed firms, based on the idea that changes in profitability and earnings are somewhat predictable.Design/methodology/approachThe study used a sample of 445 Bombay Stock Exchange (BSE)-listed companies and 309 companies from the manufacturing sector in India for the period from 2007 to 2020. The study employed cross-sectional regressions. Both linear and non-linear Partial Adjustment Models (PAM) were used to forecast profitability and earnings.FindingsThe study revealed that profitability and earnings mean revert for both the BSE-listed companies and the manufacturing sector companies from 2007 to 2012. However, for the years from 2013 to 2020, it was found that there is no significant evidence of mean reversion in both the BSE-listed companies or the manufacturing sector companies.Practical implicationsThe findings have larger implications for security analysts who forecast future stabilisation or recovery of historically high or low growth rates. Investors and analysts would benefit from having a better understanding of how competitive attacks affect profitability as well as how the overall economic growth of a country affects earnings and valuations.Originality/valueMost of the empirical research in India has focused on mean reversion in stock prices or stock returns. The present study looked at the mean reversion of profitability and earnings in Indian firms.

BOOK TAX DIFFERENCES, KEBIJAKAN HUTANG DAN PROFITABILITAS DAMPAKNYA TERHADAP PERUBAHAN KEUNTUNGAN PADA PERBANKAN UMUM SYARIAH DIINDONESIA

This study has the aim of testing the effect of the model partially or simultaneously, namely changes in the profits of Sharia General Banking in Indonesia which are thought to be influenced by booktax differences, debt policies and profitability. The population is all sharia commercial banks operating in Indonesia, using purposive sampling ten samples were selected. The classical assumption test is carried out first before testing the model, and the results are that the model being tested is free from the classical assumption problem. By using panel data regression test, it is obtained that simultaneously all variables have a significant effect on changes in the profits of Islamic banking in Indonesia. While the partial test shows that there is a permanent difference and debt policy has a negative and significant effect on changes in profits, temporary differences and profitability have a positive and significant effect on changes in profits.

Profit functions of catfish farming for increasing household income in Pekanbaru City Riau Province

The profit of catfish farm is a description of performance of the business, where the profit is determined by output and inputs price. This study aims to analyze of catfish farm profits and determinants of catfish farm profits. This study used a survey method, located in Pekanbaru City. The research data are cross section data what was obtained by using the inverview method, The sampling method used simple random sampling method with 98 catfish farmers, Data analysis used statistical analysis with multiple linear regression. There are several findings: First, catfish farms in Pekanbaru City is profitable. Second, the catfish price, labor wages, feed price PF 1000 depresiation costs are significantly to affect profits, but the price of seed and feed PF 800 do not significantly to effect it. The Third, catfish price s responsive to changes in profit of catfish farm. This is means to changes catfish prices have a major impact on changes in catfish farm profits. However, labor wages, feeds and depreciation cost are not responsive to farm profits. This study recommends that the output price policy is very important for the sustainability of this business.

Monetary Policy Normalization and Central Bank Profits: A Break-Even Point Perspective

Abstract This paper advances a simple framework explaining how monetary policy normalization (“exit policies”) may impact central bank profits. The cases of seven central banks of major and smaller economies serve as an illustration. The notion of the break-even point is applied to study the financial situation of these institutions for the period of 2014–2021. During the normalization process, interest rate increases may adversely affect profit changes, and through transfers may have an impact on the fiscal space available to the governments, creating political economy concerns. Possible remedies are discussed together with accompanying policy dilemmas.

Changes in firm profitability, heterogeneous investor beliefs, and stock returns

In this study, we show that changes in profitability predict a firm's stock returns and future profitability. We construct three horizon-based profitability changes, including short-, medium-, and long-term changes. We find that the predictive information for short-term changes in profitability is not subsumed by the profitability level in the Chinese stock market. We also find that short-term profitability changes generate an asymmetrical premium across different market states. Furthermore, we find that the beta anomaly is embedded in the premium generated by a short-term change in profitability. In addition, we explore the underlying mechanisms of the profitability premium and propose a heterogeneous investor belief channel to explain the profitability premium. We find that risk-based q-theory also helps explain the profitability premium. Therefore, the profitability premium comes from a mixed source and cannot be entirely explained by a single theory.