Company Health Research Articles

Financial Modelling of Metal and Mineral Mining Companies in Indonesia using Altman Z-scores

Predictions about a company's financial condition related to bankruptcy are important information for interested parties, such as creditors, investors, government, auditors, and the company's internal management. This research models the financial condition of metal and mineral mining companies through the Altman Z-Score model and panel data regression analysis. This study focuses on a sample of nine companies involved in metal and mineral mining from 2017 to 2022. In this study, the Altman method was used to determine a company's health category using the Z-score standard. Panel Data Regression modelling showed that the fixed model was the best. The partial test results indicated that WCTA and RETA did not affect the Altman Z-score. However, when considering all the ratios simultaneously (WCTA, RETA, MVBV, and STA), they contribute to predicting a company's financial condition. These results highlight the importance of understanding the variables that influence a company's health and progress. Notably, the variables of WCTA, RETA, and STA play a crucial role in determining the Altman Z-score and contribute to our understanding of a company's financial condition.

Research on Tax Management and Tax Risk Prevention Measures

Firstly, tax management is an important aspect of financial management, which involves the selection and calculation of taxes. However, tax management also carries various risks, and we need to adopt different approaches to avoid these risks. In this article, we will discuss the definition of tax management, the different stages involved in the tax management process, and the differences in tax management in different countries. Secondly, this article also conducted case studies on tax management and tax risk prevention strategies, in order to deepen the understanding of these issues and their impact on the company's financial health. This article first provides the definition of tax management and tax risk prevention strategies, and then delves into the different stages involved in the tax management process. At the same time, this article emphasizes the importance of tax risk prevention strategies in enhancing the financial health of companies, and conducts in-depth analysis of cases.

Internal Equity Annual Changes and Security Returns of Companies Listed in The Nairobi Securities Exchange.

This study examined the effect of annual changes in internal equity on ordinary equity security returns in Kenyan public limited firms. Internal equity is the portion of a company's equity generated through retained earnings and the issuance of new shares to existing shareholders. The study was guided by the research philosophy of positivism, given that it relied on quantitative data and espoused the scientific approach to research. It adopted a causal or explanatory research design to check how the annual changes in public firms' internal equity impacted a firm's stock market value. A census study of 67 public companies was employed, of which 49 met data requirements. The study used secondary data from the company's financial statements for eleven years, from January 2012 to December 2022. The data collected was analyzed using descriptive and inferential statistics. The hypothesis that annual changes in internal debts had no significant effect on security returns was tested at a 95% confidence interval using the t-statistic and p-value. The study adopted panel data to carry out the research analysis. Panel regression analysis using the random effects model was undertaken after appropriate normality, model specification, homoscedasticity, linearity and autocorrelation diagnostic tests. Findings reveal significant variability in internal equity changes across sectors. Correlation analysis establishes a positive and significant association between internal equity changes and security returns. Panel regression analysis further confirms a strong and positive relationship, indicating that an increase in internal equity corresponds to higher returns on equity securities. The results emphasize the importance of internal equity in signalling a company's financial health and stability, impacting investor confidence and potentially leading to higher equity security returns. Investors are urged to conduct sector-specific analyses, considering variability in financial structures. The study contributes valuable insights to understanding internal equity's role in influencing financial well-being and security returns in the Kenyan business landscape.

Unearthed Treasures by Unlocking the Secrets of Forgotten Cash through Dynamic Cash Flow Analysis

Cash flow is an important aspect of company finances which reflects the company's financial health and ability to fulfill its financial obligations. Cash flow statements allow stakeholders to understand how cash flows are generated and used in a given period. This research aims to gain an in-depth understanding of cash flow management, financial innovation, risk management, and modern business practices. Through a qualitative approach with literature studies, this research explains various aspects related to cash flow, starting from definitions, classifications, and problems that may occur, to the analysis techniques used. There are three main categories in the cash flow report, namely operating, investing, and financing activities. Cash flow problems can occur in the form of a deficit, break-even, or surplus. Cash flow analysis includes various ratios that measure a company's financial performance, such as operating cash flow/net sales, free cash flow, and other ratios. The results and discussion highlight the cash flow analysis techniques used, such as the calculation of operating cash flow/net sales and free cash flow, as well as various ratios that measure a company's financial performance. This research concludes that cash flow analysis is an important key in understanding company finances and making better strategic decisions. Cash flow statements help identify potential financial problems and ensure the long-term continuity of a company's operations. As suggestions for future research, this study suggests exploring the impact of technology in cash flow management, the influence of financial innovation on cash flow, risk management strategies, dividend policies, best practices in cash flow management, comparison of methods for preparing cash flow reports, the influence of tax policy, and the impact of CSR on cash flow.

Analysis of the Connection Between Executive Remuneration and Corporate Fiscal Achievement

The interplay between top executive pays and fiscal achievements remains at the forefront of discourse in organizational leadership and governance frameworks. Understanding the connection between executive incentives and performance outcomes is crucial for effective corporate governance. This study dives deep into the tapestry of research that dissects these nuanced interactions. Executive compensation, a critical component of corporate governance, directly influences the behaviors and decision-making of top executives. Simultaneously, financial performance serves as a key indicator of a company's operational health and ability to generate value. According to the analysis, the relationship between both is complete and multifaceted. In some cases, higher levels of executive remuneration are positively correlated with improved financial performance, while negative correlations also exist. The relationship between the two is influenced by characteristics, e.g., corporate governance, industry characteristics, company performance, and individual executive characteristics. Numerous studies are currently available on the relationship between the two. However, it is important to acknowledge the limitations and shortcomings of the existing studies, which may impact the generalizability and applicability of the findings. In conclusion, the nexus between executive compensation and financial output is a complex and multidimensional issue that requires further in-depth research and study.

Pengungkapan Corporate Social Responsibility dan Likuiditas Dalam Meningkatkan Kinerja Keuangan

The capital market has become an alternative funding avenue supporting companies in expanding their operational scale and enhancing profitability. The evolving financial position has become pivotal in assessing a company's performance. Financial reports serve as tools to evaluate a company's financial health, playing a crucial role in decision-making and reflecting the company's performance. Financial performance factors encompass efficiency, technological advancements, and distribution balance. Corporate Social Responsibility (CSR) disclosure and liquidity are primary considerations in assessing financial performance. This research employs an explanatory survey approach and descriptive-verification analysis. The sample involves manufacturing companies listed on the Indonesia Stock Exchange between 2012-2014. Secondary data collection methods involve content analysis of the companies' annual reports. Descriptive statistical analysis, correlation, multiple linear regression, and F and t-tests are utilized to analyze the data. Descriptive data show that the CSR variable has an average disclosure of 0.2667, average liquidity of 2.0895, and average financial performance of 0.2034. Correlation reveals that CSR has a moderate positive relationship with financial performance (0.444), while liquidity exhibits a moderately stronger positive relationship with financial performance (0.502). CSR contributes 19.71% to financial performance, whereas liquidity contributes 25.20%. Multiple linear regression analysis indicates that both independent factors, CSR and liquidity, significantly influence financial performance positively. Findings illustrate that CSR disclosure and liquidity hold a significant positive relationship with financial performance. CSR contributes 19.71% to financial performance, while liquidity contributes 25.20%. These results indicate the importance of CSR and liquidity as factors influencing the financial performance of manufacturing companies on the Indonesia Stock Exchange.

Fraud Diamond Theory Detection on M-Score with Profitability as a Moderating Variable: A Case Study on Sharia Banking Companies

Financial statements provide information about a company's financial health and performance. Fraud involves deceit created for personal or group gain and can occur within financial reports. The Fraud Diamond model serves as a tool for fraud detection, while the M-Score method detects the financial health of a company. This research explores how profitability influences the relationship between fraud diamond variables and M-Score, aiming to prove whether profitability has an impact on the relationship between at least one fraud diamond variable and M-Score. Moderation Regression Analysis, facilitated by Microsoft Excel and SPSS, is employed as the analytical tool. The study utilizes data samples from Bank Mega Syariah, Bank Syariah Bukopin, Bank Syariah Indonesia, Bank Victoria Syariah, Bank Aladin Syariah, and BPD Riau Kepri Syariah for the period 2020-2022. The findings indicate that profitability strengthens the relationship between independent variables and dependent variables. Moreover, the moderating variable interactions significantly moderate 3 out of 5 X variables against Y. This research aims to fill knowledge gaps, provide deeper understanding, and make a significant contribution to the development of financial management theory. It also offers practical guidance for business stakeholders facing complex and dynamic challenges.

Analisis Pengaruh Kebijakan Dividen, Struktur Modal, dan Struktur Kepemilikan Terhadap Kinerja Keuangan dengan Investasi Sebagai Variabel Intervening pada Industri Rokok yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2022

This research focuses on financial performance as a core element in evaluating a company's health and productivity, considering that it reflects the extent to which the company is able to manage resources, generate revenue, and meet its financial obligations. In a business context, financial performance not only reflects the results of various strategic decisions taken by management, but also becomes a benchmark for investors, creditors and other decision makers to measure the company's long-term growth and stability potential. The three main indicators for analyzing financial performance are Current Ratio (CR), Return on Assets (ROA), and Return on Equity (ROE). In this research, there are several variables that support the dependent variable (Y), namely financial performance. The supporting variables are Dividend Policy, Capital Structure, Ownership Structure, and Investment as Intervening variables. Quantitative research methods are used to analyze data from company financial reports on the Indonesian Stock Exchange. These factors, such as Dividend Policy, Capital Structure, and Ownership Structure, are expected to have a significant impact on the financial performance of cigarette companies. This research contributes to the literature by focusing on a less exposed sector, namely the cigarette sector, and introducing a better method of measuring financial performance.

Assessing the Practice and Implications of Earnings Management among Listed Financial Services Companies in Zambia

Financial statements are crucial for investors and stakeholders to assess a company's financial health. There is a concern that companies and banks listed on the Lusaka Stock Exchange (LuSE) may be using creative accounting techniques to manage their earnings figures (earnings management) to present a more favourable financial position. This study seeks to assess the Practice and Implications of Earnings Management Among Listed Financial Services Companies in Zambia. The study utilized a mixed method approach were both qualitative and quantitative methods were utilized targeting 923 permanent employees of all the companies that were listed on the Lusaka Stock Exchange (LuSE). The study ascertained the extent to which earnings management was practiced among the companies and further determined the extent to which earnings management was reliable in the companies and banks listed on LuSE. The study also determines the challenges faced among the companies and banks listed on LuSE in relation to earnings management. The results revealed that the majority of the selected companies were not frequently practicing earnings and that the practice was done yearly. This was evident based on the Beneish – Model results score of 2.25 indicating possible manipulation. Results from the study show that on the Beneish Model shows average magnitude of abnormal accruals. This result revealed that earnings management presented numerous challenges in the companies. From these results, it could be deduced that in the last 6 months by the time of writing this report, on average there was minimal improvement in the company’s reputation after earning management practices. The findings revealed the majority of the publicly held companies exceeding 75% intentionally distort earnings to misrepresent performance while adhering to the country’s laws.

Analyzing the Financial Performance of PT. Steel Pipe Industry of Indonesia Tbk

The financial report is a vital tool for acquiring insights into a company's financial position and business performance. Through financial statement analysis, crucial indicators pertaining to the company's financial health are unveiled, rendering it a valuable resource for guiding financial decision-making processes and offering a comprehensive portrayal of the company's performance. This study evaluates the financial performance of PT Steel Pipe Industry of Indonesia Tbk. and forecasts the company's sales turnover over the next five years. This research adopts a quantitative descriptive approach, utilizing secondary data spanning from 2018 to 2022 from the PT Steel Pipe Industry of Indonesia Tbk. The data analysis process encompasses several stages, including (i) Ratio Analysis of Financial Reports from 2018 to 2022, (ii) Compilation of sales data, (iii) Projections of sales figures using the least squares method, and (iv) Forecasting profits for the period from 2023 to 2027. The findings of this study indicate that the PT Steel Pipe Industry of Indonesia Tbk. is facing challenges in its financial performance, as the ratio values consistently fall below industry-standard financial metrics. However, the company has demonstrated resilience in maintaining its profitability levels, evidenced by a 6% increase in profit percentage in 2021 compared to 2020. This can be attributed to the company's consistent profit generation efforts, resulting in year-on-year profit growth.

ANALYSIS OF FINANCIAL DISTRESS USING ALTMAN'S Z-SCORE MODEL IN SELECTED INDIAN PHARMACEUTICAL COMPANIES

The necessity for financial analysis is growing as a result of industrialization, trade, and commerce. Predicting financial difficulties has become a key concern for all firms since the financial crisis happened in 2008. For assessing a company's financial health and the likelihood of insolvency, employ Altman’s Z-score model. Early bankruptcy prediction is vital for both the parties involved in the company and society. Based on their sales in the year 2021-2022, the top five pharmaceutical companies listed on the Bombay Stock Exchange were chosen as a sample for this study. The period of the study is five years, from 2017-2018 to 2021-2022. For this study, secondary data is employed. The collected data was examined by using Altman's "Z" score model in Microsoft Excel. The results show that the average Z-score for the pharmaceutical sector over the course of the study was greater than 4.5, which is significantly greater than the threshold value of 1.8 and indicates that the sector's overall financial position is satisfactory.

ANALISIS RISIKO K3 PADA MAINTENANCE MESIN FINAL PRESS MENGGUNAKAN METODE SWIFT

This study aims to determine the hazards that arise as a result of the final press machine maintenance process and to provide a solution to the existing hazards in the form of safeguards or recommendations for improvement. The method used in this study is the SWIFT (Structural What If Analysis) method, which is a technique for identifying the dangers of a questioning approach using the what if keyword. System design is carried out to evaluate the company's occupational safety and health system by examining the causes and implementing corrective solutions. In this paper, the results of this study were carried out using a qualitative method by conducting an analysis on maintenance activities for the final press machine which resulted in risks with different levels, namely 13 medium priorities, 3 low priorities and 4 lowest priorities with the conclusion that the medium priority would be recommended for system improvement because it has the highest priority value which aims to prevent and reduce the risk level of work accidents in the final press machine maintenance process. Suggestions for companies to pay more attention to the safety and health of workers in order to achieve a comfortable and safe work system for workers by providing PPE, and there needs to be an emphasis on implementing efforts to control work accidents for workers to minimize the risk of work accidents.

Nexus of the CSR disclosures and corporate financial performance: evidence from Asian countries climate policy uncertainty.

Financial performance is a critical aspect of a company's overall health and sustainability. It directly influences investor decisions, stock market performance, credit ratings, and the company's ability to access capital. Corporate financial performance is influenced by multitude of facts, both internal and external such as disclosure of the information, and social and environmental factors. On the ground of the facts, we aimed to investigate non-financial firms that belong to Asian economies affected by climate policy uncertainty and corporate social responsibility disclosures in terms of their financial performance. To conduct quantitative study analysis, we used the two effective statistical tools such as two-stage regression method and generalized method of movement (GMM). Our results show that corporate high value of social responsibility disclosure and climate policy uncertainty has significant negative impact on return on asset (ROA) of the listed organizations of China, Pakistan, and India. Moreover, CSR disclosure attributes higher values such as social (SC) and governance score (GOV), and climate policy uncertainty (CPU) has significant negative relationship with return on equity (ROE) and earning per share (EPS) respectively, while a higher value of ESG total score and the environmental (ENV) score has a significant positive impact on ROE and EPS. Additionally, the research concludes that climate policy uncertainty is a key factor that motivates CSR disclosure practices, which ultimately improves corporate financial performance. Moreover, we concluded from our finding that the climate policy uncertainty creates ambiguity surrounding government regulations, international agreements, or market mechanisms that affect financial performance. Moreover, environmental disclosure information that has the large part in total ESG scores attract the investors around the globe which leads to rise in the financial performance, while the other attributes of the CSR disclosure decrease performance. This study advocated the great implications for researchers, investors, the government, and regulatory authorities. Policy makers can make the policy about the CSR disclosure for creating the good image of the organization to attract investors around the globe.

Analisis Kinerja Keuangan pada Perusahaan Jaringan Distribusi Ritel di Indonesia

Financial performance analysis plays a crucial role in assessing the overall health and effectiveness of a company. This research focuses on analyzing the financial performance of a retail distribution network company in Indonesia, utilizing quantitative descriptive methods. It employs financial ratio and common size analyses on primary data from financial statements to comprehend the company's financial position, profitability, liquidity, and solvency. Through a quantitative descriptive observational design, secondary data from literature and documents are collected. The analysis includes assessing liquidity via current and cash ratios, profitability through metrics like ROA, ROI, and ROE, as well as evaluating solvency using relevant ratios. The findings provide insights into the company's performance, revealing potential short-term issues due to decreasing current and cash ratios and fluctuations in profitability. These insights assist stakeholders in making informed decisions and formulating strategies, underscoring the significance of financial analysis in evaluating a company's health.

ANALYSIS OF THE APPLICATION OF THE BALANCE SCORECARD METHOD IN MEASURING THE PERFORMANCE OF PT. KENCANA PESAKA ABADI

This study aims to analyze the company using four perspectives, namely the financial perspective. Customer perspective, internal business process perspective, learning and growth perspective. The research method used is descriptive qualitative using secondary and primary data sources of PT Kencana Pesaka Abadi in 2018-2020 and data collection methods using documentation, observation and interviews. Results Based on research that the application of the Balance Scorecard method in measuring company performance 2018-2020 has been effective with the company's health level. KEP-100/MBU/2002 77.83% with a weighted value of 100%, the company's performance value is A = HEALTHY from a financial perspective, customer perspective, business and internal perspective, growth and learning perspective.

Six decades of corporate disclosure research: a bibliometric review

PurposeCorporate disclosures are essential because they provide transparent and accurate information about a company's financial health, performance, risks and governance practices. They enable investors to make informed decisions, promote market efficiency and maintain trust in the financial system. This paper uses bibliometrics to identify the intellectual composition of the literature on corporate disclosure.Design/methodology/approachBased on the bibliometric information of 4,551 articles on corporate disclosure research, the authors conducted citation, keyword co-occurrence, bibliographic coupling and publication analyses to elucidate the leading articles, authors, sources, institutions, countries, themes and topics in the field of corporate disclosure from the 1960s to 2021.FindingsThe findings of this review demonstrate that corporate disclosure research is based on four broad themes – the role of disclosure in capital markets, non-financial disclosure, determinants of corporate disclosure and firm risk and intellectual capital disclosure. This review suggests that management should pay attention to the financial and non-financial corporate information that investors, regulators and the government emphasise.Originality/valueThis paper is the first comprehensive bibliometric review on corporate disclosure. It summarises the regulatory shifts, technological changes and industry trends that have influenced corporate disclosure research. Besides identifying broad research themes, the authors performed bibliographic coupling for research on disclosure sources, including annual reports, management forecasts, earnings calls, press releases, the Internet and social media, to reveal the thematic clusters related to these sources.

Dynamic Impact of Inflation and Exchange Rate in Indonesia's Top 10 Market Capitalization Companies: Implications for Stock Prices

Macroeconomic factors are widely believed to have a crucial role in affecting a company's financial health and, ultimately, its stock price. The study addresses this important issue by investigating the long-term impact of inflation and exchange rates on firm stock prices. This study adopts both panel and cross-firm modeling, along with a dynamic approach, which no prior study has ever conducted in Indonesia’s top 10 market capitalization companies. It utilizes monthly data spanning from September 2008 to August 2023. To generate insights into long-term effects, the study applies the Dynamic Ordinary Least Squares (DOLS) method, with a robustness check using the Fully-Modified Ordinary Least Squares (FMOLS) method. The econometric estimations yield results that are consistent with the hypotheses, indicating that the rise in inflation levels has a negative effect, while the strengthening of the domestic currency in exchange rates positively influences firm stock prices in the long term. This implies that investors should carefully assess and navigate inflationary environments, consider diversifying their portfolios across industries and international markets, and maintain a long-term perspective when making investment decisions in the unique context of Indonesia's market landscape.

CEO Overconfidence as Moderator of Sales Growth, Interest Coverage, Fixed Asset Intensity to Financial Distress

This study seeks to explore the influence of certain factors, namely company growth, interest coverage ratio, and fixed asset intensity, on a company's financial health or distress. We pay special attention to the potential role of CEO overconfidence as a variable that might change or moderate these influences. Drawing from a quantitative approach, we used publicly available financial statements of primary consumer goods companies listed on the Indonesia Stock Exchange from 2017 to 2021. Our findings suggest that company growth and the value of fixed assets play roles in determining financial distress, but the interest coverage ratio does not. Moreover, when factoring in CEO overconfidence, we found it changes the way company growth and fixed assets relate to financial distress. Yet, this CEO trait doesn’t alter the relationship between the interest coverage ratio and financial distress.
 Keywords: company growth, interest coverage ratio, fixed asset intensity, ceo overconfidence, financial distress

A STIUDY ON WORKING CAPTIAL MANAGEMENT” AT ADITYA AUTO PRODUCTS AND ENGINEERING PRIVATE LIMITED, DODDABALLAPUR.

This study delves into the intricacies of working capital management (WCM) within Aditya Auto Products and Engineering Private Limited. The objective is to analyze the company's strategies for efficiently managing, its current assets & liabilities to maintain optimal liquidity and operational efficiency. By examining the company's cash conversion cycle , inventory turnover, & accounts receivable/payable processes, this research aims to provide insights into the effectiveness of Aditya Auto Products' WCM practices. The findings from this study will contribute to a better understanding of company's financial health and provide recommendations for potential improvements in its WCM strategies. Keywords : WCM , Financial health, Operational efficiency, Short-term assets, Liabilities, Liquidity, Resource, Profitability, Cash , Accounts receivable , Accounts payable Inventory, Efficient etc.

COMPANY HEALTH LEVEL ANALYSIS WITH FINANCIAL ASPECTS AT PT PERUSAHAAN GAS NEGARA TBK

The company's financial health information is needed to protect the company's existence from competitors. Companies that need to be assessed for their financial health are State-Owned Enterprises, therefore the Minister of State-Owned Enterprises Decree No: Kep-100/MBU/2002 appears to assess the soundness of SOEs. This study aims to determine the level of financial health of the company at PT Perusahaan Gas Negara (Persero) Tbk for the period 2018-2021. By using eight (8) indicators, namely: Return On Equity (ROE), Return On Investment (ROI), Current Ratio, Cash Ratio, Collection Periods (CP), Inventory Turnover (PP), Total Asset Turn Over (TATO) , Ratio of total own capital to total assets. The results of the discussion can be seen that the financial performance of PT Perusahaan Gas Negara (Persero) Tbk in the last four years is in an unhealthy condition, it is hoped that the company will be able to improve the level of financial health.