Earn Profits Research Articles

PENGARUH UKURAN PERUSAHAAN, LEVERAGE, DAN PROFITABILITAS TERHADAP EARNINGS RESPONSE COEFFICIENT PADA PERUSAHAAN PROPERTI DAN REAL ESTATE YANG TERDAFTAR DI BEI PERIODE 2014-2018

ABSTRACTThis research was conducted at property and real estate companies listed on the Indonesia Stock Exchange period 2014-2018. The sample was determined using purposive sampling method. The samples obtained was 30 companies with 150 observations. The data analysis method used is multiple linear regression analysis. The results of this study indicate that simultaneously company size, leverage and profitability have a significant effect on the earning response coefficient. While partially proves that firm size has no effect on earnings response coefficients, leverage has a significant negative effect on earnings response coefficients and profitability has a significant positive effect on earnings response coefficients. This research is expected to be useful for investors.Keywords: Firm size, leverage, profitability, earnings response coefficient

Downstream competition and profits under different input price bargaining structures

In a vertically related duopoly with input price bargaining, this paper re-examines the downstream firms’ profitability under different market competition degrees. It is shown the rather counterintuitive result that downstream firms earn highest profits with semi-collusion, whose level depends on the upstream bargaining structures, the relative parties’ bargaining power, and the parameters measuring the degree of product differentiation in the downstream market. Concerning social welfare, the key result is that policymakers can tolerate some degree of collusion with decentralized bargaining structures; centralized structures advise for a more procompetitive policy.

RASIO KEUANGAN DAN UKURAN PERUSAHAAN SEBAGAI PREDIKTOR AGRESIVITAS PAJAK (Studi Pada Perusahaan Manufaktur Subsektor Barang Konsumsi Di BEI)

This study aimed to examine the tax aggressiveness through the components of financial ratios namely liquidity, leverage, profitability, and corporate size in manufacturing companies of consumer goods sub-impurities on the Indonesia Stock Exchange for the period 2015-2018. The selection of samples uses proposive sampling with the criteria of consumer goods subsector companies that report complete finances and companies earn profits. Based on these criteria, a sample of 98 observations was obtained. Analytical techniques use multiple linear regression analysis. The results showed that liquidity negatively affects tax aggressiveness, leverage negatively affects tax aggressiveness, profitability positively affects tax aggressiveness, and corporate size negatively affects tax aggressiveness.
 Keywords: Tax Aggressiveness, Liquidity, Leverage, Profitability, Size of Fir

PENGARUH ASIMETRI INFORMASI, LEVERAGE, UKURAN PERUSAHAAN DAN PROFITABILITAS TERHADAP MANAJEMEN LABA

This study aims to investigate the effect of information asymmetry on earnings management, investigate the effect of leverage on earnings management, investigate the effect of firm size on earnings management, and investigate the effect of profitability on earnings management. The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sample used was selected by the purposive sampling method and used secondary data in the form of an annual report. The analytical method used is multiple linear regression analysis to analyze the dependent variable, earnings management, and the independent variables are information asymmetry, leverage, firm size, and profitability. The results showed that information asymmetry did not have a significant impact on earnings management, but leverage, firmsize, and profitability had a positive and significant impact on earnings management.

Pengaruh Value Added Capital Employed, Structural Capital Value Added dan Dewan Direksi Terhadap Kinerja Keuangan

This study aims to determine the effect of added value capital employed, structural capital added value and the board of directors on financial performance. This research is a type of quantitative descriptive research. The population used in this study is the banking sector companies listed on the Indonesia Stock Exchange as many as 43 companies, while the research sample used is banking companies listed on the Indonesia Stock Exchange for the period 2017-2019 with the sampling technique used in this study is to using purposive sampling method. The criteria for the companies used as samples in the study are banking companies listed on the Indonesia Stock Exchange and have published their financial statements and annual reports for four consecutive years from 2017 to 2019 and companies that earn profits in their business, and have never experienced losses during the 2017-2019 period. Research testing using the F test, t test, and the coefficient of determination test (R2). The results showed that the Value Added of Capital Employed (VACA), Structural Capital Value Added (STVA) and the Size of the Board of Directors (DD) simultaneously had a significant effect on Financial Performance (ROA). Value Added of Capital Employed (VACA) has no effect on Financial Performance (ROA). Structural Capital Value Added (STVA) has a positive effect on Financial Performance (ROA). The size of the Board of Directors (DD) has a positive effect on Financial Performance (ROA). Adjusted R Square of 0.549 or 54.9%. This shows that the company's financial performance variable (ROA) of 54.9% explains the Intellectual Capital variable with its components namely Value Added of Capital Employed (VACA) and Structural Capital Value Added (STVA) and good corporate governance with the indicator used is Board Size. Directors, while the remaining 45.1% is explained or influenced by other variables that are not used in this study.

Impact of Agro Technology on Socio-economic Condition of the Farming Groups at Jagannathpur

Agriculture is being highly technologized today; to sustain production and gain higher yields, farmers have to be updated regarding available technologies. As the land area is decreasing, there’s always a challenge to increase production and earn profit. Therefore, technological innovations also change farmers’ socio-economic conditions. Considering this, an interview on three categories (landless, marginal, small) of 15 farmers was conducted at the Jagannathpur union of Kumarkhali upazilla under the Kushtia district to investigate the socio-economic status, problems in crop production, potentials, limitations of rural development and adoption extent of modern agricultural technologies. Outcomes expressed that, a major source of annual income (1,20,800 Tk) of landless farmers were from non-agricultural works; contrary, marginal (2,89,000 Tk) and small (3,89,200 Tk) farmers’ prime source of income was from agricultural origins. It was a positive sign that all categories of farm families spent a good sum of money for educating children immediately after food expenditure. All the farmers had drinking water, electricity and hygienic toilet facilities at their dwelling house. The problem confrontation index (PCI) of rural development was highest in lack of capital (36). Physical and social PCI was identified as limited natural resources (32) and reduction of croplands (28), respectively. Concerning technology adoption, 14% used biofertilizer, 12% followed a modern model of vegetable production, 12% collected quality seeds, 10% exercised mulching, 10% used perching and 10% imitated seed preservation techniques. Top PCI for crop production was high input cost (36) followed by lack of technical knowledge (34). Most of the respondents agreed that agricultural production directly contributes to food security (34), increased nutrition (32) and financial safety (30).

Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana

The study examines how premiums ceded to a reinsurer affect the profitability of non-life insurance companies in Ghana. Secondary data on reinsurance ceded, combined ratio, assets, liabilities and return on assets for 20 non-life insurance companies over the period 2008–2018 were sourced from National Insurance Commission whilst interest and exchange rates variables were obtained from the Bank of Ghana. Panel regression model was employed for the analysis of the data collected. The results show that purchasing high levels of reinsurance alone does not affect the profitability of non-life insurance companies, but the combined effect of reinsurance and solvency ratio significantly impact their profitability. Managers of non-life insurance companies in Ghana should increase their ability to repay all financial obligations in the short, medium and long term in combination with reinsurance. This will enable insurers to stabilize growth, earn profits and meet their obligations to policyholders in a timely fashion. JEL Code: G22

Cost recovery and investment barriers for renewables under market manipulation of thermal collusion

Last decade has witnessed a booming development in renewables and significant changes in the generation mix around the world. Given their relatively low variable costs, renewables are expected to be cleared first in the electricity market and earn profit margins under a marginal pricing mechanism to recover their fixed costs. However, some strategic price manipulation behaviors may distort the spot price and cause market failure. In this article, we show that thermals could exploit cross-product arbitrage possibilities through long-term contracts under high renewable penetration, and thereby lower spot prices and squeeze renewable profit margins, discouraging future renewable investments. We build a bi-level model to study strategic behaviors of thermals discussed above and their impacts on the market equilibrium. The model can be recast as a mathematical problem with equilibrium constraints (MPEC) and further formulated as a mixed integer linear programming (MILP) after proper linearization. We then use internal rates of return (IRR) and minimal acceptable rates of return (MARR) to evaluate impacts of thermal arbitrage on renewable investments. A case study is performed to validate the model using the CAISO data. Finally, we provide policy recommendations to regulate this specific type of strategic behaviors.

ОСНОВНІ КОНЦЕПЦІЇ СОЦІАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ В БІЗНЕСІ

The core question of the article is the social responsibility of business. There is quite a long-drawn-out ongoing discussion among the scientific community about nature and essence of the phenomenon. In this perspective, the absence of a common scientific interpretation seems to arise because of a number of issues that appear during analysis of social responsibility of business. Western scientists started their investigations in this sphere in the 1950s. It was connected with TNCs’ activity that caused some social and ecological problems. In Ukraine the interest in the social responsibility of business emerged only recently. A great number of political, economical and social reasons could explain that. Plenty of studies reveal that the increase in social responsibility of Ukrainian business runs in line with global trends: a positive attitude about socially responsible companies is gradually prompting scientific debates about a common approach for analyzing the kernel and “boundaries” of social responsibility. The article explores the category of social responsibility and business’ unique essence as a subject of social responsibility. The authors present an evolution of the concept of social responsibility of business and its fundamental modern approaches.Demand for corporate social responsibility (CSR) has developed largely inresponse to the real or perceived failureof legislation, regulation and enforcement to control and regulate the impactof company activities on people and theenvironment. It has also arisen alongsidethe scaling back of command and controlmeasures by many governments aroundthe world.A business should function to earn money in such where that it fulfill the expectation of the society. Every person living in society has some obligation towards it. They have to followed social values and norms of behavior. A business is permitted by society in order to carry on commercial or industrial activities wit help of that earn profit. But it is obligatory on the side of business that not to do anything, that is undesirable from point of view of society. The manufacture and sale of adulterated good, not paying due tax, doing deceptive, polluting environment works exploitation are some examples of undesirable practice in the point of view society.

Sizing versus Price: How they influence the energy exchange among large numbers of hydrogen-centric multi-energy supply grid-connected microgrids

Hydrogen-centric multi-energy supply microgrids cover different types of energy, such as electricity/heat/gas/hydrogen, which will play an important role in emerging smart cities. On the other hand, multi-energy supply microgrids can also exchange energy with utility grid networks, which can help the local consumers earn profits, and also resist natural disasters. However, to efficiently achieve energy exchange among regional multi-energy supply grid-connected microgrids is still a complex problem, especially considering that there are large numbers of hydrogen-centric microgrids, and multiple types of exchanged energy (electricity, heat, gas, hydrogen). In this paper, we evaluate how the sizing and price influence the energy exchange among large numbers of hydrogen-centric multi-energy supply microgrids. First, we presented a hierarchy structure to manage exchanged energy, namely, utility grids-load service entity (LSE)-microgrids. Second, we use the prices as the only guide to encourage different parts to achieve energy exchange. And the price-based optimal operation strategy of microgrid and LSE is developed. Third, an extended model with an IEEE30+Gas20+Heat14 hybrid utility grid network, 4 LSEs, and 16 hydrogen-centric multi-energy supply microgrids are built. Last, different sizing and price profiles are deployed. The simulation results show that large sizing indicates large earned profits while large price presents small profits. And through the hydrogen, invisible power can be stored in tanks, and can be further exchanged at any time.

Economic justification for development and operationalization of rail-freight-corridors between hub-seaports and inland container depots in Nigeria

The obsolesce and decay of rail transport infrastructure linking major seaports Cities to hinterland cargo origin and destination centers serviced via the seaports and the total lack of rail infrastructure connection between some hub seaports and the hinterland cargo centers in Nigeria induces enormous economic setback. Most rail routes from seaports to the inland container depots (ICDs) in all the geopolitical zones of the Country are currently inoperable. Government’s recent attempt to develop and make operable the rail routes is faced with funding challenges necessitating the need for a Public Private Partnership (PPP) approach in which government provides regulation and enablement while private sector operators fund the projects. This study was aimed at providing economic justification for private sector investment in developing, revitalizing and making operable, the rail-freight-corridors between hub-seaports and inland container depots in Nigeria. It estimated the operator-benefits and profitability potentials of investment in each of the ten rail-freight-corridors consisting of existing but inoperable and proposed rail routes from Lagos, Port-Harcourt/Onne, Warri and Calabar seaports to the Inland container depots in different geopolitical regions of Nigeria. Secondary data on the import and export (cargo generation) capacities of each of the ICD regions to and from the respectively connected hub-seaport were obtained from the Nigerian ports authority statistical report covering a period of two years (2018 – 2019) based upon which the annual expected revenue earnings of the operators (investment) were estimated as a product of the total annual TEU handled by each route and the price of delivering per TEU from the seaport to the ICD region. The cost of investment in developing and operating each rail-freight-corridor as determined in previous studies for the Nigerian Shippers Council for the same period were also obtained. Benefit-Cost-Ratio (BCR) and Net Present Value (NPV) tools were used to estimate the operator-benefits and profitability potentials of each rail route within the period using 10% interest rate. It was found that six of the rail routes have BCR > 1; and NPV>0; implying higher operator-benefits over costs within the period. The rail-routes from Lagos seaport to Gombe and Bauchi; Warri seaport to Aba; and Calabar seaport to Kano have BCR <1; and NPV <0; implying higher operator-costs over benefits and unprofitability of the routes within the first two years of service delivery. It was recommended that the PPP terms for rail freight corridors with BCR <1 and NPV<0, should have a higher contract period than the other routes to enable the private investor have a higher payback period to recoup the cost of investment and earn profit.

Importance of Employee Care in Corporate Social Responsibility: An AHP-Based Study from the Perspective of Corporate Commitment

The original intent of Corporate Social Responsibility (CSR) is to encourage enterprises to earn money from society and give back to society. In other words, enterprises should aim to not merely earn profits for shareholders, but also contribute to social and environmental sustainability. This study discusses the importance of corporate commitment when enterprises engage in CSR. Therefore, enterprises’ fulfillment of their CSR enables them to realize organizational development and sustainable management, in which human resource development plays a significant role. Based on a review of the literature and using the Delphi method, combined with expert interviews and consultations, this study analysed the concepts and practices concerning employee training, care, and safety, to identify relevant dimensions and criteria of corporate commitment. Using the analytic hierarchy process method (AHP), this study determined the weights of various factors. The findings will help enterprises formulate optimal strategies of corporate commitment, thus facilitating effective practices of CSR.

Trading performance and market efficiency: Evidence from algorithmic trading

In India, National Stock Exchange directly identifies algorithmic trading participation. Algorithmic traders possess intraday market timing skills. Results are not motivated by extreme short-term signals or transitory price trading. Magnitude of market timing performance in cross-sectional group of traders shows that they earn profit across all the cases, and maximize while providing liquidity. Volume-weighted-average-price decomposition analysis reports algorithmic traders earn profits through intraday market timing performance for five-minute and one-minute intervals, and it is higher compared to short-term market timing performance across all trader groups. Order imbalance and price delay regressions show that algorithmic trading significantly improves price efficiency.

Influence of Visual Merchandising on Impulse Buying Behaviour of Customers in Sports Retail Outlet in Hubli City

Visual Merchandising is the practice in the retail industry for enhancing better experience of consumers and that can be done by developing floor plans and three-dimensional displays. An impulse purchase is an unplanned decision to buy a product or service, made just before a purchase, one who tends to make such purchases is referred to as an impulse purchaser or buyer. The intention of practicing visual merchandising is aimed at bring customers to the store and earn profits. The main purpose of this research paper is to study the most influential element of visual merchandising in impulse buying behaviour of customer in Sports Retail Outlet in Hubli City. The factors considered for the study are Window Display, Floor Merchandising, Mannequin Display and Promotional Signage. A questionnaire was administered and 150 responses were collected during the study. The data collected is analysed using Factor Analysis and Regression in SPSS. The researcher found that Promotional Signage and In-store Mannequin are the major influential factors in the selected element of the visual merchandising. It was also found from the study that the Influence of Promotion likes special signs and Signage like sale-signs were significantly associated with impulse buying behaviour.

Green Investments: A Mini-Review

The purpose of this assignment is basically the familiarization of green investments which is the tool used in businesses and financial sustainable analysis. Green investment which is also known as the eco investment is such a form of socially responsible investing in which the investments are carried out in those companies which are proved helpful in producing the products that are environmentally friendly. These companies use new technology and basically earn profit in this way. With the apparentness of the environmental effect of industries, green investments took a central place not only in culture but in the financial world also. Most of the green investments are known as socially responsible investments and the socially responsible investments are known as green investments but these two are not mutually inclusive. Socially responsible investments mean to make an investment in the companies which fulfill specific ethical or moral criteria. It might include companies that have an interest in the environment. There are many sectors and areas which follow green investment. Green investment funds can be increased by firms and companies. They can also be increased by the individuals performing green investment (XM, 2019).

Capitalizing on Sustainability: Value of Going Green

We investigate how corporate environmental responsibility (CER) actions affect firm value. We adopt an event studies approach using two narrowly-decided 5-to-4 Supreme Court rulings and show that firms gain value when they are expected to increase their CER activities. The market reactions are larger for firms that are affected to a greater extent by the Court decisions. These return patterns are more pronounced among firms in regions with high levels of social trust. Firms that reduced toxic chemical emissions show positive earnings surprises, higher revenue and profitability, and greater capital inflow from institutional investors with longer horizons. In sum, we present empirical evidence consistent with the market viewing CER as leading to higher firm value.

The Complexity of Pharmaceutical Prices: An Economic Analysis

This article examines the complexity of pharmaceutical pricing. Specifically, list prices are often considerably higher than net prices. PBMs have considerable market power to obtain substantial discounts (rebates) from pharmaceutical companies which encourages higher list prices. In general the generic market work well. At issue is how much of the discounts are passed on to other stakeholders. High prices during market exclusivity or patent protection encourages R&D. Pharmaceuticals spend a large percentage of revenues on R&D, earn large profits which are somewhat overstated and take substantial risk. Many firms never make a profit. Drugs provide great value and increase the quality of life of patients. Since subscribers often change insurance companies, insurers have a shorter time horizon than pharmaceutical firms, which could lead to coverage issues. Policies to mitigate high drug prices include changes to PBM rebate practices, stricter patent approvals and reduction of barriers for generics and biosimilars.

Variance Ratio Test in Pakistani Stock Market

This study is an attempt to investigate the evidence of random walk on KSE-100, KSE-30, all-share index, KMI-30 from Pakistan stock exchange (PSX) and 40 independent firms from randomly selected for the period from January 01, 2009 to August 31, 2014 by using the conventional Lo and Mackinlay (1988). Both positive and negative autocorrelation is found in the return series of indices and individual stocks. KSE-100 shows negative autocorrelation, KSE-all and KMI-30 are positively autocorrelated. Large number of firms have found to possess negative correlation and profits are earned by mean reversion trend. For KSE-30 and for 10 other firms the null hypothesis of random walk cannot be rejected revealing unpredictability in KSE-30. Therefore, it is concluded that large investors earn profits by over-reaction and small investors by trend-chasing in the market where possible. Keywords: Variance ratio test, Pakistan stock exchange; random walk DOI : 10.7176/EJBM/11-9-11 Publication date :March 31 st 2019

The Value Uncertainty Premium

This paper investigates whether the time-series volatility of book-to-market (BM), called value uncertainty (UNC), is priced in the cross-section of equity returns. A size- adjusted value-weighted factor with a long (short) position in high-UNC (low-UNC) stocks generates an annualized alpha of 6-8%. This value uncertainty premium is driven by outperformance of high-UNC firms and is not explained by established risk factors or firm characteristics, such as price and earnings momentum, investment, profitability, or BM itself. At the aggregate level, UNC is correlated with macroeconomic fundamentals and predicts future market returns and market volatility. We provide a rational asset- pricing explanation of the uncovered UNC premium.

Impact of Hotel Attributes, Service Quality and Brand Image on Customer Satisfaction Among Diners at a Fine Dine Restaurant- Evidences from India

The hotel industry is contributing in a positive manner to the growth of the nation. With good opportunities in the field to earn profits, more players are emerging in the market. Satisfying customers is the key in making them revisit the restaurant and earn profits. This research intends to identify and test the impact of factors that lead to customer satisfaction in the hotel industry. Hotel attributes, service quality and brand image are identified as important factors and their effect on customer satisfaction among restaurant diners is explored. Questionnaire survey method was used for data collection from residents of a cosmopolitan town in India. Structural equation modelling (SEM) was used to analyse the data collected. Results indicate that the hotel attributes and service quality have a positive influence on customer satisfaction. Further analysis revealed that brand image partially mediates the relation between service quality and customer satisfaction.