Corporate Financial Performance Research Articles

The impact of leadership styles on marketing effectiveness and financial performance in Jordanian banks sectors: Corporate social responsibility as a mediator

Human abilities are the primary factors that define the path of the corporation's improvement; these capabilities can be improved via training, experience, education, and innovation. Therefore, the current study delves into the impact of different leadership styles on marketing effectiveness and corporate financial performance through the role of corporate social responsibility as a mediator by utilizing a Partial Least Squares Structural Equation Modeling (PLS-SEM) to research 100 managers in 2023 in Jordanian banking sectors. The result of this study has shown a significant and positive relationship between leadership styles, marketing effectiveness, and financial performance. Furthermore, social responsibility, which is the mediator of the study, shows a significant role in the connection between leadership styles and marketing effectiveness as well as financial performance in banks. Minutely, this study found that transformational style promotes an innovation culture and inspires employees in the banking sector, in other words, this style of leadership emphasizes corporate social responsibility programs that support the bank and society's objectives.

The Impact of Corporate Giving on Corporate Financial Performance and Stock Market

The Impact of Corporate Giving on Corporate Financial Performance and Stock Market

ESG Performance, Executive Compensation Incentives and Corporate Financial Performance

ESG Performance, Executive Compensation Incentives and Corporate Financial Performance

Analysis of the Impact of ESG on Corporate Financial Performance and Capital Market Value

Analysis of the Impact of ESG on Corporate Financial Performance and Capital Market Value

The impact of intellectual capital strategy on firm value and financial distress

This study aims to examine the effect of intangible assets, on corporate financial performance and financial distress. Intangible assets in this study are explained by human capital efficiency (HCE), relational capital efficiency (RCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). The measurement model often used is the extended value-added intellectual coefficient plus (EVAIC+) model by Ulum (2017), which is a model developed from a comparison of Edvinsson’s (1997) and Pulic’s (2000) models. Financial performance is measured by firm value with price to book value (PBV) proxy, and financial distress with Altman Z-score. This study was conducted using secondary data and sample selection using purposive sampling with samples being listed manufacturing companies in Indonesia, Singapore, Malaysia, Thailand, the Philippines and South Korea, Japan, and China Stock Exchanges for the period 2011–2021. The results of the study on Model 1 found that HCE, RCE, and CEE have a positive effect and significance and SCE have a negative effect and significance on firm value. Model 2 found that HCE, RCE, and CEE have a positive effect and SCE have a negative effect and significant on financial distress. The results of this study can be used as a reference for companies to be able to manage intangible assets, especially intellectual capital disclosure.

Artificial intelligence empowers the construction of first-class financial management system

Abstract With the rapid development of artificial intelligence technology, its application in financial management is increasingly widespread. This study aims to explore how to build a first-class financial management system with the help of artificial intelligence technology. We adopt the improved BP algorithm and ant colony algorithm to conduct in-depth research on financial risk early warning, financial analysis and financial forecasting. In terms of financial Risk early warning, a neural network-based risk early warning model is studied, and the improved model increases the prediction accuracy by 15%. The complex correlation between corporate financial status and market performance is found in economic analysis of multiple financial indicators. In terms of financial forecasting, a combination forecasting model is introduced and the weights are optimized by the ant colony algorithm, which improves the accuracy and reliability of the forecast and reduces the forecasting error by 20%. Artificial intelligence technology can effectively improve the efficiency and accuracy of financial management, provide powerful support for enterprise economic decision-making, and provide new ideas for building a first-class financial management system.

Effect of Corporate Financial Performance on Financial Distress: An Empirical Analysis of Indian Public Sector Undertakings

Effect of Corporate Financial Performance on Financial Distress: An Empirical Analysis of Indian Public Sector Undertakings

SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURE AND NATURAL RESOURCES FIRMS IN NIGERIA

This study examines how sustainability reporting affects the financial performance of Nigerianlisted agriculture and natural resource companies. Using return on assets (ROA) as a proxy for corporate financial performance, the study's particular goals were to ascertain if reporting on economic and social sustainability had an effect on the financial performance of the sampled industries. The annual reports of nine (9) chosen firms were the source of the data from 2014 to 2023. Using the E-Views statistical program, the panel least squares regression approach was used to assess the data. The study found that the financial performance of the examined firms is negatively and insignificantly impacted by reporting on economic and social sustainability. The study concluded that sustainability reporting had no significant effect on the performance of Nigerian listed agriculture and natural resources firms. The research recommends that managers focus on measures that foster a rise in the attributes of economic and social sustainability.

The impact of ESG ratings on the corporate financial performance of Russian companies

The impact of ESG ratings on the corporate financial performance of Russian companies

Exploring the Influence of Sustainability Reporting on Indian Corporate Financial Performance: A Meta-Analytical Synthesis

This research paper delves into the burgeoning field of sustainability reporting and its influence on the financial performance of Indian corporations, a topic of increasing significance in the evolving global business landscape. The primary objective of this study is to examine the extent to which sustainability reporting correlates with the financial performance of Indian companies, and to understand the nature and strength of this relationship. A meta-analytical approach was adopted to synthesize findings from diverse studies, providing a comprehensive overview of existing literature on the subject. This methodology involved rigorous inclusion and exclusion criteria, a systematic search across major academic databases, and the application of statistical techniques to calculate effect sizes and assess heterogeneity. The key findings indicate a positive, albeit modest, correlation between sustainability reporting and financial performance, as evidenced by an overall effect size (r) of 0.11. This outcome points to the importance of integrating sustainability practices into business strategies, not just as a compliance or ethical imperative but as a potential contributor to financial success. The study’s findings vary across different industries, with the banking sector showing a more significant relationship compared to non-financial firms. The implications of this research are multifaceted, influencing corporate strategy, policy formulation, and investment decisions. It underscores the strategic value of sustainability reporting in the Indian corporate sector and highlights its role in shaping a business approach that harmonizes economic prosperity with environmental and social responsibility. This study contributes to the broader understanding of the interplay between sustainability and financial performance, offering valuable insights for businesses, policymakers, and stakeholders in the rapidly evolving Indian corporate landscape.

Research on the Impact of Equity Incentives on Corporate Financial Performance of Zhongtian Financial Group

Research on the Impact of Equity Incentives on Corporate Financial Performance of Zhongtian Financial Group

Conceptualizing Peer Effects of Corporate Social Performance on Corporate Financial Performance

Purpose: Existing approaches to explaining the dynamics of corporate social responsibility (CSR) and corporate financial performance (CFP) through peer effect are incomplete as they do not conceptualize the complexity of the phenomenon. Building on the extant literature the paper aims to critically document parameters to understand the connectivity between peer effect-CSR and CSR-CFP.
 Design/Methodology/Approach: The paper is based on a proposed conceptual framework identifying key parameters to understand the connectivity between peer effect-CSR and CSR-CFP. Relevant extant literature published during 1993-2017 in high-quality journals is synthesized. This review reveals different approaches and measurement techniques as the basis of inconclusive empirical evidence on the relationship between corporate social and financial performance.
 Findings: The paper implies that firms mimic their peers’ CSR strategies for different reasons such as reputation or learning in the hope of devising better strategies for growth and sustainable development. To state, there are different motives behind and channels through which peers influence CSR-CFP association.
 Implications/Originality/Value: The paper establishes a link between corporate social and financial performance through the lens of peer effect, especially in the context of developing economies. This paper has implications in enhancing overall understanding of social responsibility and financial performance connection by providing clarity on underlying themes, theoretical underpinnings and measurement approaches.

The Influence of Internal Control Quality on Corporate Financial Performance: An Empirical Analysis based on Panel Quantile Regression Model

This study delves into the relationship between internal control quality and the financial performance of Chinese-listed corporations. Employing a distinctive research approach featuring panel quantile regression, this study meticulously examines data spanning the period from 2011 to 2020, encompassing 953 Chinese-listed entities. The analysis, in comparison to conventional methods such as ordinary least squares (OLS) regression and fixed-effects models, consistently reveals a robust and statistically significant positive correlation between internal control quality and corporate financial performance. Notably, the findings of the panel quantile regression bring to the forefront a nuanced perspective, elucidating an enhancing effect of internal control quality on Return on Assets. Nevertheless, this effect diminishes as one ascends the quantile distribution, elucidating varying degrees of influence contingent upon the internal control quality spectrum. These findings underscore the pivotal role of effective internal control systems in augmenting financial performance, with implications for corporate governance. Furthermore, this research underscores the evolving nature of internal control frameworks, particularly in the context of digitalization, thus delineating an imperative area for prospective scholarly exploration.

PENGARUH BUDAYA ORGANISASI HIJAU, KEPEMIMPINAN LINGKUNGAN, MANAJEMEN RANTAI PASOKAN HIJAU DAN PEMASARAN HIJAU TERHADAP FINANCIAL PERFORMANCE

The purpose of this study is to ascertain the relationship between financial performance and green organisational culture, environmental leadership, green supply chain management, and green marketing. 108 Consumer Cyclical sector companies listed on the Indonesia Stock Exchange (IDX) made up the study's sample. Information gleaned from secondary sources, such as annual reports and sustainability reports. This study employed multiple linear regression analysis as its analysis method. The findings of this study are independently based on the research that has been done. Corporate Financial Performance (Net Profit Margin) is positively impacted by green organisational culture, green supply chain management, and green marketing; environmental leadership has no impact on this metric. The cash ratio of a company is positively impacted by green organisational culture, environmental leadership, and green marketing; however, green supply chain management has little impact on cash ratio.

Corporate Social Responsibility and Corporate Financial Performance in Cultural and Entertainment Industry: Evidence from Chinese Listed Companies

Corporate Social Responsibility and Corporate Financial Performance in Cultural and Entertainment Industry: Evidence from Chinese Listed Companies

Has the COVID-19 pandemic affected the corporate financial performance? A case study of Slovak enterprises

Research background: The corporate debt situation can be considered a crucial factor influencing the future development of the financial performance of the firm. It is essential for every business entity to know its financial health, its strengths and weaknesses, and how its business has been affected by the COVID-19 pandemic and all the changes it has brought. Purpose of the article: The main aim of this paper is to explain and quantify the consequences of the COVID-19 pandemic, analyze changes in the growth of crucial determinants, and identify new trends in Slovak enterprises throughout the monitored period of 2018‒2021. Methods: Hence, a statistically significant difference between the individual indicators due to the period in which the firms achieved these values was determined using the Friedman test. It determined whether the average values of the financial indicators remained constant over the period under review (the years 2018 and 2019 are considered pre- COVID-19 years, while 2020 and 2021 are years when the globe was already being impacted by the outbreak of the COVID-19 pandemic) or whether the individual values of the indicators differed significantly. Findings & value added: Considering that there are statistically significant differences in the indicators of self-financing ratio, current indebtedness ratio, and equity leverage ratio in all monitored periods except for the years 2020 and 2021, where the average values of these debt indicators are the same, the results indicate that the COVID-19 pandemic also negatively impacted the indebtedness of Slovak enterprises. Although this research paper, focusing on the financial performance of the firms in the post-pandemic period, is pioneering in Slovakia, the biggest contribution of the study is the application of the latest information, which could help in more precise monitoring of corporate financial stability and debt policy during the current challenging period. The obtained results provide important universal guidelines for building financial strategies improving long-term financial resilience of enterprises.

The Impact of Environmental, Social, and Governance Factors on Corporate Financial Performance in Emerging Markets

The Impact of Environmental, Social, and Governance Factors on Corporate Financial Performance in Emerging Markets

The Influence of Enterprise Risk Management on Corporate Performance with The moderating Effect of Intellectual Capital

The purpose of this study is to examine the effect of the application of ERM on the corporate financial performance and corporate market performance. Furthermore, this study also examines the influence of intellectual capital in moderating the relationship of ERM to corporate financial performance and corporate market performance. The sample in this study is banking companies listed on the Indonesia Stock Exchange with the period 2018-2022. The results of this study show that ROI-based ERM has an influence on the corporate financial performance and the corporate market performance. ROA-based ERM has an influence on the corporate financial performance, but it has no influence on market performance. Intellectual capital has a moderator effect on the relationship between ROI-based ERM on a corporate financial performance and a corporate market performance. Intellectual capital has a moderator effect on the relationship between ROA-based ERM and a corporate financial performance, but it does not have a moderator effect on the relationship between ROA-based ERM on a corporate market performance.

Corporate Sustainability Reporting and Financial Performance of Deposit Money Banks in Nigeria

This study investigates the relationship between corporate sustainability reporting and the financial performance of deposit money banks in Nigeria. The specific objectives of the study were to determine whether economic, social, and environmental sustainability reporting affects financial performance in Nigeria using return on assets (ROA) as a measure of corporate financial performance. The study's data were sourced from annual reports of sampled banks from 2013-2022. Using the panel least squares regression technique, the study found that economic and environmental sustainability reporting has a negative and positive insignificant effect on the performance respectively. However, social sustainability reporting was found to be negative and statistically significant. Based on the findings, the study recommends amongst others that enabling legislation should be put in place to mandate enhanced sustainability practices among all deposit money banks in Nigeria as well as facilitate meaningful evaluation and measurement of economic, social, and environmental impacts in all areas of bank operations in Nigeria.

Analysis of Corporate Financial Performance in Indonesia’s Transportation and Logistic Sector

Aims: To examine the effect of the board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth on the company's profitability.
 Study Design: Dependent variable: profitability, independent variables: board of directors, board of commissioners, independent board of commissioners, capital structure, liquidity, and sales growth.
 Place and Duration of Study: The research was conducted on transportation and logistics sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022.
 Methodology: The method used in data collection is study uses purposive sampling that produce 56 company data from 148 data by caltulating them using several tests: descriptive statistical, chow, hausman, lagrange multiplier, and regression using the Eviews 12 analysis tool.
 Results: The analysis test showed the results chow test with values of 0.009<0.05(FEM), the results of hausman test of 0.627>0.05(REM), and the LM test of 0.149>0.05(CEM) and the results of regression test in the hypothesis test on the variables of the board of directors resulted in a probability value of 0.000<0.05(accepted) can affect the proditability, on the variables of the board of commissioners(0.710), independent board of commissioners(0.119), Capital Structure(0.200), liquidity(0.196), sales growth(0.218) and showing probability value>0.05(not accepted) do not affect the company's profitability.
 Conclusion: The result showed that transportation and logistic sector at company’s profit level can be affected by the mangement of directors which affects the increase in profitability. However, with the increase in the number of commissioners, independent commissioners, the many burdens and obligations borne, the company cannot achieve maximum profits. The increase in sales growth doesn’t affect the company's profits because of the enormous debt and operating costs that must be paid to meet its operational needs. Thus the company can provide signals or information according to signaling theory to investors to compare and make investment decisions in the company.