Financial Performance Research Articles

Can the MD&A Tone of Listed Firms’ Annual Reports Predict Their Future Performance? Empirical Evidence Based on Machine Learning Text Analysis*

AbstractBased on a sample of listed companies in China's A‐share market between 2009 and 2019, we analyze the tone of the Management's Discussion and Analysis (MD&A) section of 15 743 annual reports through machine learning. The MD&A tone displays a significantly positive association with the firm's future financial performance, proving that the textual tone of MD&A includes forward‐looking aspects regarding management's intentions for the company's prospects, and investors can use it to forecast the firm's future performance. Additionally, higher levels of internal control quality, stronger analyst following, and higher holdings by institutional investors can enhance the correlation between the MD&A tone and the company's future performance.

The impact of IFRS introduction by listed Moroccan companies on financial performance: The mediating role of the cost of capital

This study aims to examine the direct and indirect impact of IFRS adoption on the financial performance of Moroccan companies listed on the Moroccan financial market. The analyses are based on data drawn from the financial statements of 21 Moroccan companies listed on the Casablanca Stock Exchange. By measuring financial performance using three stock market measures, namely the Mariss ratio, the Price Earnings Ratio, and the Tobin Q ratio, and using the structural equation method with SPSS AMOS software, the results indicate that before the introduction of the cost of capital variable, IFRS significantly affect financial performance, with an estimated coefficient of 0.395 significant at the 5% threshold. By introducing the cost of capital variable, the results show that the direct and significant relationship between IFRS and performance disappears, recording an estimated coefficient of 0.241 with a non-significant probability level of 0.243. On the other hand, the results show that the estimated coefficients for the indirect effect of IFRS on financial performance are negative, i.e., a coefficient of –0.099 estimating the direct effect of IFRS on the cost of capital and a coefficient of –2.621 estimating the direct effect of the cost of capital on financial performance, significant at the 1% and 5% thresholds, respectively. This confirms the hypothesis that the transition to IFRS indirectly and totally influences financial performance via the cost of capital variable.

The effect of CSR on corporate financial performance, considering the role of female representation in the retail industry

AbstractThe aim of this study is to examine relationships between CSR and corporate financial performance, considering the role of board diversity in retail industry in the UK. The theories examined include Friedman's theory and Stakeholder theory, which have conflicting ideas on whose needs a company should serve. Quantitative methodology is utilized to capture sample data comprising 10 years of financial data. Data were collected on companies listed on the FTSE 100 during 2012–2021 that were operating in the UK retail sector. This study uses regression analysis to test the hypothesis that analyses the relationship between CSR, gender diversity, and financial performance. There is no significant relationship between gender diversity and financial performance. The number of female directors on the board does not impact financial performance, so the regression analysis does not allow us to reject the null hypothesis. Instead, past performance, sales growth, and leverage impact financial performance.

The impact of innovation and differentiation strategy on financial performance with emphasis on the role of risk management and intellectual capital

Purpose The purpose of this study is to investigate the impact of innovation and differentiation strategy on financial performance with a focus on the role of risk management and intellectual capital of companies listed on the Tehran Stock Exchange. Design/methodology/approach In this research, differentiation and innovation strategy criteria are the independent variables, performance criteria are the dependent variables and risk management effectiveness and intellectual capital are the moderating variables. The statistical population of this research includes all the companies listed in the Tehran Stock Exchange during the 10-year period, and 127 companies were selected as a statistical sample using the systematic elimination method. The research model fitting and hypothesis testing were carried out using structural equation modeling and SPSS, Smart PLS software. Findings The results of the hypothesis testing showed a positive and significant relationship between the innovation and differentiation strategy and the firm performance. In addition, effective management of risk and intellectual capital also had a significant and positive impact on this relationship. Research limitations/implications Given that this research was conducted at the Tehran Stock Exchange, it was difficult for the researchers to collect data. Also, since the Tehran Stock Exchange is a new market, a lot of research needs to be done in different areas of this market to identify the existing problems and shortcomings and to provide reasons for its growth and development. Practical implications According to the results of the research on the impact of intellectual capital and risk management on corporate performance and the impact of strategy on this relationship, this paper can expect to see an improvement in corporate performance and an increase in shareholder wealth as a result of applying the results of this research. Social implications Considering that corporate strategy, intellectual capital criteria and risk management to increase the financial performance of companies have informational content; therefore, according to the results of this research, an increase in the performance of listed companies is expected, and naturally, this increase in performance will lead to the prosperity of the economic sector, increase in job creation and as a result, improve the quality of social life. Originality/value In the Tehran Stock Exchange, by properly evaluating the financial performance criteria of companies and identifying the factors that increase intellectual capital and risk management, they provide the means to improve knowledge in this area of research.

COMPARATIVE ANALYSIS OF CORPORATE GOVERNANCE PRACTICES: A SYSTEMATIC LITERATURE REVIEW OF INDIA AND GCC NATIONS

This systematic literature review aims to review the effect of corporate governance on the firm’s financial performance and relationship between corporate governance mechanisms, government regulation and firm financial performance across different regions. The review therefore integrates conclusions from several related papers to establish how good governance practices improve sustainability, profitability, and investor satisfaction of firms. Applying the analytic approach studying the reaction of the corporate boards indicating that their diverse and actively participating in the strategic decision making has a positive impact to the increase of the financial performance and the betterment of their corporate health. In the similar vein, this study defines how strong regulatory measures that align them to the hubs and local fiscal and culture settings influences transparency and accountability to fuel financial performance. This study also reveals the new implementation problems and constraints of the governance practice including differential application of the laws and rules, and dynamic requirements for the local and global business environments for the models of the governance. The results accentuate the importance and continuous need for governance changes and serve as a platform for further research, especially focusing on digital governance and ESG factors. This research will therefore fit into this existing body of knowledge by showing how corporate governance is an imperative prerequisite for sustainable business success and stakeholder trust.

Banking Financial Performance as Influenced by Credit Risk, Liquidity and Bank Size In Conventional Banks Listed On The Indonesian Stock Exchange For The Period 2014 - 2023

This study aims to empirically examine the impact of credit risk, liquidity, and bank size on the financial performance of conventional banks listed on the Indonesia Stock Exchange (IDX) during the period 2014-2023, with a particular focus on the COVID-19 pandemic period. The research variables used include the Non-Performing Loan (NPL) ratio, Loan to Deposit Ratio (LDR), and bank size, while Return on Assets (ROA) is used as a financial performance indicator. This study uses the purposive sampling method to select a sample from 138 banks listed on the IDX, resulting in 9 banks that meet the established criteria. Data analysis was conducted using panel data regression with the Fixed Effect Generalized Least Square (GLS) model to address the issues of autocorrelation and heteroskedasticity found in classical assumptions. The research results show that credit risk (NPL) has a significant negative impact on ROA, while bank size and liquidity (LDR) have a significant positive impact on ROA during the pandemic. These findings highlight the importance of managing credit and liquidity risks as well as optimizing bank size to improve financial performance amid the challenging economic conditions caused by the pandemic. This study also suggests that the financial performance of banks can be more stable if supported by appropriate risk management strategies and good operational efficiency. The limitations of this study include a sample restricted to conventional banks in Indonesia and the specific conditions during the COVID-19 pandemic, which may affect the generalization of the results.

Analisis laporan keuangan dalam menilai kinerja keuangan pada Marketing Office CitraLand Winangun Manado

Financial reports are very helpful and very important for companies to know how a company's financial performance is in the current year and previous years. This research aims to analyze financial performance using the profit and loss report at the CitraLand Winangun Manado Marketing Office from 2021-2023. The type of research that will be used in this research is descriptive with a quantitative approach using primary data sources and secondary data. The research results based on liquidity ratios are not good enough because in fulfilling its obligations the company experiences several obstacles on the side of the company's current liabilities and for trend analysis it is also not good enough because in fulfilling its obligations the company experiences several obstacles such as the income generated is not enough to cover existing expenses but to Trend analysis can be said to be good because in the following year it has increased and the activity ratio from the first to the third year has decreased but it is also quite good because the fixed asset turnover has increased every year, while the solvency ratio, profitability ratio and trend analysis can be said to be good every year. year because the decrease in profit only occurred in the first year and the following year there was an increase.

Techno-Economic Analysis of BAU-STR Dryer for Rice Drying: An Approach to Accelerate Adoption

Postharvest food loss and waste offset worldwide agricultural productivity and food security. Insufficient drying and storage are the prominent drivers of food loss and waste in underdeveloped countries. Mechanical grain drying systems have distinct benefits over sun drying but are inaccessible to underserved communities due to high capital costs and energy demand. This study evaluated the techno-economic and financial performance of a half-ton-capacity BAU-STR dryer. The moisture extraction rate, drying rate, drying efficiency, and energy consumption were used as technical performance indicators. In contrast, the net present value (NPV), internal rate of return (IRR), benefit–cost ratio (BCR), and payback period were considered economic performance indicators. The technical performance analysis results revealed that the moisture content of rice was reduced from 19.5% to 13.5 ± 0.15% in 4.0 h with an average drying rate of 1.5%/h and a drying efficiency of 75.1%. The financial performance analysis resulted in a drying cost, NPV, IRR, BCR, and PBP of USD 0.96 per 100 kg of grain, USD 3018, 135%, 3.0, and 0.73 yr., respectively, when the annual use was 240 h. If the yearly use of the dryer increased from 240 to 720 h, a higher NPV, IRR, and BCR, as well as a lower payback period and drying cost, could be achieved. Adopting a BAU-STR dryer for drying grain (rice and corn) among underserved communities could play a key role in postharvest food loss and waste.

Evaluating the Financial Performance of Retail Oil Distribution Companies in India: A Comparative Study of Public and Private Sectors

This study examines the financial performance of public and private sector retail oil distribution companies in India from 2013 to 2023. The research focuses on two hypotheses: first, that private sector companies (RIL and Nayara Energy) demonstrate superior profitability metrics (ROCE, ROA, ROE) compared to public sector counterparts (BPCL, HPCL, IOCL) due to operational flexibility and market-driven strategies; and second, public sector companies exhibit lower financial leverage (Debt-Equity Ratio) reflecting conservative financial management and government oversight. Statistical tools such as ANOVA were employed to analyse ten years of financial data, revealing significant differences in profitability metrics favouring private-sector companies, and lower financial leverage among public-sector entities. These findings provide investors, policymakers, and stakeholders valuable insights in understanding sectoral dynamics and making informed decisions. The study contributes to the existing literature by illustrating distinct financial strategies and performance trends within India's retail oil distribution sector, crucial for strategic planning and regulatory frameworks in the energy industry.

Institutional investors’ impact on sustainability disclosure: exploring the moderating role of financial performance

Purpose This paper aims to investigate the relationship between institutional investors and sustainability disclosure, specifically examining the impact of financial performance as a moderator variable on the relationship between institutional investors and sustainability disclosure. Design/methodology/approach This paper used a panel data set of 51 firms from the industrial sector listed in the Amman Stock Exchange, with a total of 459 observations during 2013–2021. Multiple regression models were used to test the direct and moderating relationships. Findings The findings of this paper indicate that institutional investors exhibit varying attitudes toward sustainability disclosure. Institutional investors have a positive and significant impact on firm sustainability disclosure. Furthermore, the relationship between institutional investors and sustainability disclosure is significantly influenced by financial performance. Social implications The study’s findings encourage regulators to enhance firms’ awareness of sustainability disclosures by balancing the economic, social and environmental pillars. This can be achieved by conserving natural resources, protecting the environment and promoting social justice for future generations. Originality/value The paper’s insights can be valuable for policymakers’ sustainable practices by encouraging institutional investors to support sustainability activities actively.

The economic and financial performance of biogas production: a retrospective analysis of the French case

Purpose While numerous studies have focused on the economic impact of technical changes made to anaerobic digestion plants, there is limited understanding of the overall economic and financial performance of the biogas production units. This study aims to analyse the economic and financial performance of the biogas production sector over a 5-year period using various accounting indicators. Design/methodology/approach The research is based on an examination of financial data of French biogas units over a five-year period (2015–2019). Following a research protocol detailed in the study, 334 units were studied: 192 projects run by farmers, 83 projects run by industrial companies and 59 run by a mixed partnership (farmers, local authorities, and industry). Findings This study reveals that biogas production is performing well both economically and financially, but the performance varies depending on the type of producer: farmers better perform from an economic point of view, while industrialists are looking for financial profitability. Farmers exploit their competitive advantage based on waste disposal. Industrialists offset this disadvantage by a better ability to raise funds to negotiate payment terms and interest rates. Originality/value The originality of the study lies in its business approach. It completes the energy efficiency one which is more usual in energy sector management publications. Additionally, the study spans a five-year period, providing a longitudinal perspective of companies’ economic and financial performance. Furthermore, the data is sourced from reliable government sources.

The Influence of Minangkabau Indigenous Values on Entrepreneurial Orientation and Business Performance in Padang, Indonesia

This study investigates the relationship between Minangkabau indigenous values, entrepreneurial orientation (EO), and business performance among entrepreneurs in Padang, Indonesia. Minangkabau culture, with its matrilineal system and emphasis on community and entrepreneurship, provides a unique context to explore how cultural values influence business practices. A quantitative survey was conducted with 300 entrepreneurs in Padang, measuring their adherence to Minangkabau values, EO dimensions (innovativeness, proactiveness, and risk-taking), and business performance (financial and non-financial). Data were analyzed using structural equation modeling (SEM). The findings reveal that Minangkabau values significantly influence EO, with a strong positive relationship between these values and the dimensions of innovativeness and proactiveness. Furthermore, EO was found to be a significant predictor of both financial and non-financial business performance. In conclusion, this study highlights the importance of cultural values in shaping entrepreneurial behavior and business success. The findings suggest that Minangkabau values foster an entrepreneurial spirit that drives business performance in Padang. This research contributes to the understanding of culture's role in entrepreneurship and provides valuable insights for entrepreneurs, policymakers, and researchers in Indonesia and other culturally rich contexts.

ENHANCING BUSINESS SUSTAINABILITY THROUGH CSR: A CASE STUDY OF "BETTER LIVING IN MALAHING” IN THE PERSPECTIVE OF CARROLL'S PYRAMID

This study examines PT PKT's CSR initiative, "Better Living in Malahing," in relation to business sustainability and its alignment with the Sustainable Development Goals (SDGs). The research underscores the critical role of economic responsibility and profitability in sustaining both social and environmental goals. Using a qualitative case study approach, the study delves into the implementation of the CSR program based on Carroll's Pyramid of responsibilities, encompassing economic, legal, ethical, and philanthropic dimensions. Data collection methods include in-depth interviews, observations, and document analysis. Findings reveal that the program significantly improved the quality of life for coastal communities in Bontang while simultaneously bolstering the company's reputation. Moreover, a strong correlation between corporate social responsibility and sustainable financial performance is identified. The conclusion emphasizes that integrating CSR into core business strategies is crucial for long-term sustainability. This research contributes by illustrating the necessity of well-structured, enduring CSR initiatives in supporting economic, social, and environmental dimensions of corporate operations.

Do ESG Practices Promote Financial Performance? Comparison of English, Chinese, and Korean Papers Through Bibliometric and Meta-Analysis

Companies engaged in ESG practices to enhance financial performance and demonstrate a commitment to sustainable development. However, the relationship between ESG and financial performance remained unclear, as prior studies were replete with contradictory paradoxes. This study aimed to comprehensively analyze the evolution of ESG practices and their impact on financial performance by comparing English, Chinese, and Korean papers. This study employed a mixed-methods approach and conducted a bibliometric analysis on 2659 ESG-related papers to unveil temporal trends and conduct a meta-analysis. Stratifying by language, linguistic and cultural nuances influencing the relationship were identified. The bibliometric analysis revealed a significant turning point in ESG research around 2019, marked by a surge in publications across languages. Keyword co-occurrence networks highlighted distinct focal points, with financial performance appearing in all the research themes. The meta-analysis indicated a low overall positive correlation between ESG and financial performance. However, Chinese and Korean papers demonstrated a moderate correlation, while English papers showed no significant correlation. This study informed scholarly, managerial, and policy discourse on sustainable business practices, contributing to the evolving ESG landscape.

Financial Performance Evaluation using Financial Distress models with reference to Dabur India Ltd

The global FMCG business is expected to reach close to $15000 billion by 2025 in the current era of e-commerce. Accordingly, FMCG is identified as the fourth-largest sector in India. One of the top businesses in India is Dabur India Ltd. As a result, we tried to evaluate the financial patterns and performance during the previous ten years. The main objective of this study is to assess the financial positions with respect to profitability, solvency, liquidity, etc. For the study, the ratio analysis techniques are employed and Financial Distress of Dabur India Ltd is analysed by Altman's Z-Score Model and Zmijewski Model. The study's overall conclusion unequivocally shows that Dabur is benefiting from positive financial performance across the board. This could assist Dabur India in maintaining a strong market share and a leading position in the FMCG industry.

Analysis of Moderation and Co-Moderation Effects on Waste Information Disclosure and Financial Performance Connection: A Way to Ensure Sustainable Business for SMEs

ABSTRACT Financial and Environmental, Social and Governance (ESG) performance of sustainable businesses from environmentally sensitive industries and their impact on society has traditionally focused on large companies but has increased in importance for SMEs. To investigate and follow the strengthening of the relationship between waste information disclosure and financial performance, this paper examines the moderation and co-moderation effects of productivity, environmentally sensitive status industry, and board size on firms in Romania. Results revealed that increased board size and a higher degree of waste information disclosure are associated with decreased profitability ratios. When economic productivity grows, a higher degree of waste information disclosure enhances the financial performance of companies.

Analisis kinerja keuangan menggunakan metode economic value added dan market value added pada perusahaan sub sektor perdagangan ritel barang primer yang terdaftar di Bursa Efek Indonesia

Financial performance analysis is a method of verifying that a company has properly and correctly applied the principles of financial implementation. This study will determine the financial performance of primary goods retail trade sub-sector companies listed on the Indonesia Stock Exchange for the 2019-2023 period using the economic value added and market value added methods. This research is qualitative descriptive. The research was conducted on retail trading companies of primary goods listed on the IDX during the research period and has published financial statements during the research period. The data was obtained by the documentation method. The results of the research from the five primary goods retail trading companies studied showed a volatile but positive EVA result (EVA>0), while MVA results were consistently positive (MVA>0). Only DAYA and RANC companies in 2019 and MIDI companies in 2023 had a negative MVA (MVA<0).

Camel Financial Indicators and Performance of Tier Three Commercial Banks in Kenya

Camel Financial Indicators and Performance of Tier Three Commercial Banks in Kenya

Effect of Strategic Plan on Financial Performance of Commercial Banks in Rwanda A Case of BPR Bank Rwanda PLC Headquarter. Period: 2018-2022

Effect of Strategic Plan on Financial Performance of Commercial Banks in Rwanda A Case of BPR Bank Rwanda PLC Headquarter. Period: 2018-2022

The Influence of Entrepreneurial Spirit of Business Actors on MSME Performance During the Covid-19 Pandemic in Palopo City with Digital Marketing as an Intervening Variable

The study examined the influence of the entrepreneurial spirit of business actors on performance. Micro, Small and Medium Enterprisesduring the covid-19 pandemic in Palopo City with digital marketing as an intervening variable. The type of research is quantitative research with a structural equation model approach. The results of the study showed that no direction of the relationship between the entrepreneurial spirit of MSME entrepreneurs (Ƹ) and the financial performance of MSME entrepreneurs (ῃ2) in Palopo City during the covid-19 pandemic, there was a real relationship or significant influence of the entrepreneurial spirit of MSME entrepreneurs (Ƹ) on digital marketing (ῃ1) during the covid-19 pandemic. there is a relationship and real or significant influence of digital marketing (ῃ1) on the performance of MSMEs (ῃ2), there is an indication, when the spirit or entrepreneurial spirit expressed in hard work activities, innovation expressed by the application of creative ideas, and creativity in the form of statements of the ability to apply something new in entrepreneurship, as well as the basis of belief in success during the Covid-19 pandemic which if quantified by 1 then marketing efforts with dropshipper or reseller activities, namely a statement of the entrepreneur's initial understanding to understand various factors in digital marketing through copywriting, namely a statement that states arousing curiosity and interest for prospective consumers and existing consumers and thematic pacebook pages and Instagram, namely statements about efforts to attract potential buyers and buyers quickly, then the performance of MSMEs in Palopo City has increased by 0.850 or 85%. Digital marketing is able to mediate the entrepreneurial spirit of MSME business actors towards the performance of MSMEs in Palopo City during the Covid-19 pandemic.