Management Financial Performance Research Articles

PENGEMBANGAN USAHA PADA UMKM YU MIN BATIK & BUTIK DESA SIDOREJO KECAMATAN COMAL KABUPATEN PEMALANG

<table width="576" border="1" cellspacing="0" cellpadding="0"><tbody><tr><td width="402"><p>The Micro, Small and Medium Enterprises that are the object are the UMKM Yu Min Batik & Boutique owned by Mrs. Siti Aminah which is located in Sidorejo Village, Comal District, Pemalang Regency. This MSME operates in the field of clothing and modified batik cloth in Pemalang. The aim of implementing this activity is to develop business, good financial management and production performance. The business assistance provided includes marketing aspects. The efforts made by the accompanying team aim to promote Yu Min Batik & Boutique products through MSME activities such as bazaars and catalog content on online social media. This is due to increasingly sophisticated technological developments and seeing many entrepreneurs, especially MSMEs, promoting their businesses through online social media. The aim is to introduce and attract the interest of potential customers by understanding the individual characteristics of consumers so that the products sold will match their wishes.</p><p>The assistance method used is carrying out several programs such as making banners, making simple bookkeeping, Google maps, participating in MSME bazaar activities, making direction boards, making organizational structures, business profiles, and creating social media (Instagram). After analyzing and applying the program to Yu Min Batik products, it produced a positive impact on MSME owners. Such as introducing products through promotions on social media and placing banners, organizational structures, understanding simple bookkeeping, business profiles, and installing direction boards to fulfill product requirements to support promotions so that people have more confidence in the products they want to buy.<strong></strong></p></td></tr></tbody></table>

The impact of female board membership and firm performance on the environmental management system

This paper examines the effect of gender diversity on the Environmental Management Systems (EMS) measured as ISO 14001 adoption among Saudi-listed companies. In this study, we propose that female board members significantly influence EMS adoption by employing agency theory, stakeholder theory and resource dependency theory to predict the relationship. The final sample of this study consists of 44 firm-year observations for non-financial companies listed on the Saudi Stock Exchange with ISO 14001 certification from 2016 to 2019. The logistic regression results show that higher representation of women on boards is associated with more extensive use of EMS indicating the importance of gender diversity in enhancing corporate environmental responsibility. Moreover, companies with better financial performance are less likely to adopt comprehensive ecological management practices. This paper contributes to the existing body of knowledge by revealing how board diversity is related to financial performance and environment management systems among firms operating in emerging markets. These findings have policy implications for policymakers, business leaders and researchers engaged in sustainable development initiatives to enhance governance mechanisms.

Effects of Table Banking on Socio-Economic Empowerment of Households in Turkana County, Kenya.

Table banking is a concept that has gained popularity in the recent past in Kenya. The aim of this type of informal banking is to enhance the socio-economic status of citizens, particularly those from poor areas of the country. However, measuring and tracking changes in the levels of socio-economic empowerment of households through table banking is not well documented, although it is becoming popular, especially among women groups in Kenya. The main objective of this study was to investigate the effects of table banking on the socio-economic empowerment of households in Turkana County, Kenya. The specific objectives were: to establish the effect of table banking financial accessibility, table banking awareness, table banking group participation, table banking group credit risks management strategies on socio-economic empowerment in Turkana County. The study is guided by the theory of change by Loiseau and Walsh 2015, vulnerable group theory of financial inclusion and public good theory of financial inclusion. The study adopted descriptive survey design where questionnaires were used to get primary data. Secondary data was used to validate the primary data collection. The study involved a sample of 398 members drawn using simple random sampling method from a population of 60,500 Table banking members from Kalobeyei ward, Kakuma ward in Turkana West Subcounty in Turkana County. A total of 398 questionnaires were administered with a return rate of 97.0%. The data collected was analysed using descriptive statistics. The study relied on Pearson’s correlation, linear regression and factor analysis to draw inferences from the responses. Statistical analysis was done with the aid of statistical package of social sciences (SPSS) software version 24. The findings of the study revealed a strong, positive and statistically significant relationship between access to finance and socio-economic empowerment of households. The findings of the study also showed a fairly, strong, positive and statistically significant relationship between table banking awareness on socio-economic of households. Besides, the findings revealed a very strong, positive and statistically significant relationship between Table banking and active group participation on socio-economic empowerment of women. The results of the study also revealed a very strong, positive and statistically significant relationship between table banking credit risk management strategies and socio-economic empowerment of women. According to the findings, this study recommends continuous, operative and thorough training of all groups involved in table banking to enhance their capacity in leading the groups and enhancing financial management capability and performance. Additionally, the study recommends creating a functional system for financial access through the use of several financial products at affordable prices, this focuses on government considering increasing the avenues and mechanisms for socioeconomic empowerment of women and special interest groups, especially in the rural areas. As shown in this study, findings provide evidence of active participating of women in the table banking compared to men involvement, based on this it will also be pivotal to further research the basis of men’s involvement in table banking and how affects their contribution to socio -economic empowerment at the household level.

Good Governance, Internal Control, and Village Financial Management Performance: Examining the Moderating Effect of Tri Hita Karana in Denpasar City

The village fund program in Indonesia is planned to support the development and implementation of the Village Government. The village fund program certainly requires village officials to be able to carry out accountable financial management. Village financial management must be managed properly in accordance with the principles of good governance and implement good internal control. However, in practice, there are still some irregularities that occur in village financial management, one of which has occurred in Denpasar City, Bali Province, Indonesia. These irregularities are generally committed by individuals who do not have good ethics and morals. Therefore, it is necessary to harmonize the concept of village government management with the cultural values of local wisdom that developed in Bali, one of which is the concept of Tri Hita Karana culture. Through a strong positive culture, it can undoubtedly produce good performance and achievement for each individual and organization. This study aims to examine the ability of Tri Hita Karana to moderate the effect of good governance and internal control on village financial management performance in Denpasar City. This study uses a quantitative approach using primary data. Data collection techniques with questionnaires. This research was conducted in all villages in Denpasar City. Sample determination using nonprobability sampling method with purposive sampling technique. The data analysis technique used was Moderated Regression Analysis (MRA). The results showed that good governance and internal control had a positive effect on village financial management performance. Tri Hita Karana culture cannot moderate the effect of good governance and internal control on village financial management performance in Denpasar City. The application of the principles of good governance and internal control can improve the effectiveness and efficiency of village financial management. Although the Tri Hita Karana culture has been developing for a long time in Bali, the community has not been able to fully integrate these cultural values in formal practice activities. So that in the future it still requires improvement and better adjustment.

Bank financial sustainability evaluation: Data envelopment analysis with random forest and Shapley additive explanations

Ensuring financial sustainability is imperative for a financial institution's overall stability. To mitigate the risk of bank failure amid financial crises, effective management of financial sustainability performance becomes paramount. This study introduces a comprehensive framework for the accurate and efficient quantification, indexing, and evaluation of financial sustainability within the American banking industry. Our approach begins by conceptualizing financial sustainability as a multi-stage, multifactor structure. We construct a composite index through a three-stage network data envelopment analysis (DEA) and subsequently develop a random forest classification model to predict financial sustainability outcomes. The classification model attains an average testing recall rate of 84.34 %. Additionally, we employ SHapley Additive exPlanations (SHAP) to scrutinize the impacts of contextual variables on financial sustainability performance across various substages and the overall banking process, as well as to improve the interpretability and transparency of the classification results. SHAP results reveal the significance and effects of contextual variables, and noteworthy differences in contextual impacts emerge among different banking substages. Specifically, loans and leases, interest income, total liabilities, total assets, and market capitalization positively contribute to the deposit stage; revenue to assets positively influences the loan stage; and revenue per share positively affects the profitability stage. This study serves the managerial objective of assisting banks in capturing financial sustainability and identifying potential sources of unsustainability. By unveiling the “black box” of financial sustainability and deciphering its internal dynamics and interactions, banks can enhance their ability to monitor and control financial sustainability performance more effectively.

Agility and Resilience in Supply Chains: Investigating Their Roles in Enhancing Financial Performance

Business sectors face disruptive challenges such as cash flow problems in finance and material flow problems in supply chain and logistics processes in today’s rapidly evolving and uncertain environment. Given these challenges, effective management of resource and material flows by managers has become increasingly complex. Supply chain management is crucial for businesses to sustain competitive market positioning. This study distinctively explores the interplay between supply chain management and the financial performance of manufacturing companies, highlighting the increasingly dynamic and competitive global markets. It scrutinizes the moderating roles of supply chain agility and flexibility in this relationship, offering diverse analytical perspectives. The research methodology involved surveying white-collar employees within these companies. Factor analysis was employed to affirm the scale’s validity, and the Hayes model 3 method was utilized to test hypotheses. Our research uncovered intricate interactions between supply chain management, agility, and resilience, underscoring their collective impact on financial performance. The thesis that supply chain management has a substantial impact on financial performance was corroborated by the study’s results. The study also emphasizes the moderating impact of supply chain agility in the relationship between financial performance and supply chain management. The results of the study that supply chain resilience moderates the moderating effect of supply chain agility indicate that the interaction between supply chain resilience and supply chain agility may affect the relationship between supply chain management and financial performance if supply chain resilience enhances the resilience of organizations to external challenges. These insights suggest organizations must integrate agility, management, and resilience considerations in their supply chains to optimize performance. This study contributes a novel viewpoint to the literature, providing strategic guidance for managerial decision making.

Strengthening corporate governance and financial compliance: Enhancing accountability and transparency

In today's complex business landscape, robust corporate governance and financial compliance are essential for maintaining organizational integrity, accountability, and transparency. This review examines the key components and strategies necessary to enhance these frameworks, ensuring sustainable success and stakeholder trust. Corporate governance encompasses regulatory compliance, risk management, ethical conduct, and stakeholder engagement. Adherence to laws and regulations, such as the Sarbanes-Oxley Act (SOX) and the General Data Protection Regulation (GDPR), is foundational in minimizing legal risks and safeguarding reputation. Effective risk management involves identifying, assessing, and mitigating potential threats to an organization’s financial health and operational integrity through strong internal controls and regular audits. Promoting ethical conduct within organizations is crucial for maintaining trust and reputation. Establishing codes of conduct, ethical guidelines, and whistleblower protections fosters a culture of integrity. Transparent communication and stakeholder engagement ensure that organizational activities align with stakeholder interests and expectations. Enhancing accountability and transparency involves several key strategies. Strong board oversight and independence, characterized by diverse and skilled board members, ensure balanced and objective decision-making. Regular internal and external audits verify financial accuracy and compliance, identifying areas for improvement. Leveraging technology and data analytics is pivotal in modern compliance efforts. Technologies like blockchain, artificial intelligence (AI), and machine learning automate processes, improve accuracy, and provide real-time insights into financial performance and risk management. Transparent regulatory reporting and disclosure practices, adhering to standards such as the International Financial Reporting Standards (IFRS), further enhance stakeholder trust. Continuous training and education for employees and board members on corporate governance principles, regulatory requirements, and ethical standards are vital for fostering a culture of compliance and accountability. Strengthening corporate governance and financial compliance is fundamental for enhancing accountability and transparency. By adopting comprehensive regulatory frameworks, leveraging technology, and promoting ethical conduct, organizations can build trust, mitigate risks, and ensure sustainable growth in a dynamic business environment. Keywords: Corporate Governance, Global Corporations, Harmonization.

ANALYSIS OF THE FINANCIAL MANAGEMENT PERFORMANCE OF TATAH MOSQUE VILLAGE, BARITO KUALA REGENCY

The Tatah Mesjid Village Government is obliged to carry out reporting and accountability for the implementation of the Village APBD. The Budget Realization Report shows that the financial performance of the Tatah Mesjid Village Government, Barito Kuala Regency is running well, but the success of the budget performance that has been achieved does not necessarily fully implement the value for money principle (economic, efficient and effective) so it is necessary to measure the achievement of the Village APBD performance. This research aims to measure the financial management performance of the Tatah Mesjid Village Government, Barito Kuala Regency using the value for money concept for the 2020-2022 fiscal year. The research method uses quantitative with a descriptive approach. Data was analyzed using the concept of value for money to measure economic ratios, efficiency and effectiveness. The research results show that the financial performance of the Tatah Mesjid Village government during 2020-2022 for economic measurements consistently shows results >100% with economic criteria. The efficiency measurement for the 2021 fiscal year of 97.07% is included in the efficient criteria because it is between 90-99%, however in 2020 and 2022 the results show inefficiency because the ratio is more than 100%. Measuring the effectiveness of village funds and allocation of village funds shows effective results. However, tax and levy revenue sharing shows less effective results because the ratio is <65%.

Financing a push and pull supply chain under revenue sharing: value addition and default risk transmission mechanism

Supply chain finance (SCF) releases participants' capital constraints and facilitates their operations. SCF and transactional contracts can have synchronised effects on participants' performance. This research analyses how credit financing and bank loans with revenue-sharing contracts can help capital-constrained suppliers and retailers improve their financial and risk management performance in the push and pull supply chains. Results suggest that SCF generates greater profits than capital-constrained supply chains without SCF and well-capitalised supply chains, demonstrating a leverage effect. In a push scenario, SCF enhances the wholesale price effect and risk-sharing effect of the revenue-sharing contract, resulting in increased order quantity and profits for participants, albeit with an amplified default risk transmission effect. Conversely, in a pull scenario, SCF boosts participant profitability by strengthening the order quantity effect of the wholesale price contract, although its risk-sharing effect is weakened by the revenue-sharing contract, thereby mitigating the default risk transmission effect. When the revenue-sharing rate is low, the push model performs better in terms of profit enhancement but exhibits higher default risk transmission levels compared to the pull model, and vice versa. The findings guide participants in leveraging SCF and revenue-sharing contracts to enhance their benefits and control the default risk transmission level.

Hubungan Makroekonomi terhadap Kinerja Keuangan pada Bank Konvensional dan Bank Syariah di Jawa Timur

Macroeconomic factors can be said to have a relationship with the financial performance of banks, both conventional banks and Islamic banks. The condition of the banking sector in East Java is very vulnerable to economic shocks that occur. So it requires a very independent and good liquidity management. The existing banking sector is still very dependent on the policies made by the central bank and the government. Then if there is a financial difficulty caused by unfavorable macroeconomic conditions, then the bank's financial performance may also be disrupted. Based on the analysis of data that has been explained that macroeconomic factors such as GRDP, inflation rate, unemployment rate, BI Rate and exchange rate, which have a very large relationship to the performance of conventional banks and Islamic banks in East Java is the BI rate. This shows that the banking sector in East Java must pay special attention to the dynamics of macroeconomic factors that occur. Whereas the financial performance between Islamic banks and conventional banks shows a difference. This is because the management of bank financial performance between Islamic banks and conventional banks has a different policy.

Optimizing financial performance: The interplay between financial management and accounting information systems in Yemeni SMEs

This study aims to explore the moderating effect of accounting information systems (AIS) on the relationship between financial management (FM) and its dimensions (working capital management, financial reporting, and non-current asset management) on the financial performance (FP) of small and medium enterprises in the Republic of Yemen. The study used a quantitative model approach, with data collected via a cross-sectional questionnaire to evaluate the connections within the proposed model. The data was collected from a sample of 287 individuals from SMEs according to the cluster method and analyzed with structural equation modeling (SEM) using SmartPLS software. The results revealed that financial management (non-current asset management and financial reporting) positively and significantly affects financial performance. On the contrary, there is no effect of working capital management on financial performance. More importantly, accounting information systems do not moderate the relationship between financial management and financial performance. The results of the study provide theoretical and practical implications for SME managers on how financial management dimensions and accounting information systems work together to enhance the level of financial performance in SMEs. The interaction between financial management practices and accounting information systems can empower SMEs to make more informed financial decisions. By leveraging this interaction effectively, businesses can optimize resource allocation, investment strategies, and risk management processes.

Pengaruh Kinerja Keuangan, Asimetri Informasi, dan Manajemen Laba terhadap Harga Saham Perusahaan Perbankan yang Terdaftar di BEI Tahun 2020-2022

This study aims to analyze the effect of financial performance proxy Debt to Equity Ratio, information asymmetry, and earnings management on stock prices in banking sector companies listed on the Indonesia Stock Exchange for the period 2020-2022. The method used in this study is an explanatory method with a quantitative approach. While for the sampling technique itself using purposive sampling with a selected sample of 34 companies. For research analysis, namely using descriptive statistical analysis, classical assumption tests, multiple linear regression analysis, and hypothesis testing. From the results of the study, it can be concluded that financial performance with the Debt to Equity Ratio proxy does not have a significant partial effect on stock prices, information asymmetry has a negative and significant partial effect on stock prices, earnings management does not have a significant partial effect on stock prices, and financial performance, information asymmetry, and earnings management do not significantly affect stock prices simultaneously.

ANALISIS EFEKTIVITAS KINERJA KEUANGAN DALAM PENGELOLAAN ANGGARAN PEMERINTAH DAN BELANJA DAERAH PADA KOTA SURABAYA

This study aims to determine the effectiveness of the financial management performance of the Surabaya City Government for the 2015-2019 period. This study uses a quantitative descriptive method using an analysis of the effectiveness of regional financial performance, analysis of regional financial independence and analysis of compatibility (operational expenditure and capital expenditure). Using secondary data, the data processed is the Summary of Regional Revenue and Expenditure Budgets for the 2015-2019 Fiscal Year. The Regional Financial Independence of the Surabaya City Government has reached a very good level, which shows a pattern of delegative relations, which means that the intervention of the Central Government is no longer there because the regions are completely independent in implementing regional autonomy. The level of effectiveness of the Surabaya city government's financial management is fairly effective because from 2015 -2019 the effectiveness of the Surabaya city government's financial performance has always reached the target which is effective. However, the compatibility of the Surabaya government's financial performance has not been balanced. According to the description and calculations above, most of the funds owned by the Surabaya City Government are still prioritized for operational expenditure needs so that the capital expenditure ratio is relatively small.

Pengaruh Dimensi Budaya Nasional Hofstede terhadap Kinerja Pegawai dalam Pengelolaan Keuangan di Pemerintah Kota Kupang

The purpose of this research is to determine the influence of Hofstede's national cultural dimensions in the form of power distance, collectivism, uncertainty avoidance, feminism, and long term organization on employee performance in financial management in the Kupang City Government. This type of research is based on the characteristics of the research variables using survey research. By using a correlative associative quantitative approach (causal/cause and effect). The research results show that the variables power distance, individualism, masculinity, long term organization have a positive and significant effect on employee performance in financial management. Meanwhile, the uncertainty advoidance variable has a positive and insignificant effect on employee performance in financial management in the Kupang City Government.

Accountability and fiscal transfer: The perfect duo for enhancing the regional economy

Each region in Indonesia receives varying amounts of fiscal transfers from the central government, influenced by regional characteristics and accountability. This study examines the impact of fiscal transfers with accountability as a catalyst for the economic growth of Indonesia's regions proxied by gross regional domestic income. The independent variables are the General Allocation Fund (DAU), Special Allocation Fund (DAK), and Revenue Sharing Fund (DBH), while accountability as control variables proxied by BPK audit findings, bureaucratic reform (RB), SAKIP, and APIP scores. Data from 34 provinces over 2016-2020 (170 observations) were analyzed using a fixed effects model and Panel Corrected Standard Error regression. This research fills a gap by examining the simultaneous effects of fiscal transfers on economic growth. The findings indicate that fiscal transfers significantly impact regional economies. The DAK has the highest effect, followed by DBH and DAU. Accountability, measured by APIP, SAKIP, RB scores, and BPK audit findings, is essential for efficient use of transfer funds. BPK audit findings negatively impact the regional economy, underscoring the need for regional governments to improve accountability to optimize central government transfers and support economic growth. Thus, fiscal transfers and accountability are pivotal for enhancing regional financial management and economic performance.

Analysis of the Role of BPK RI in Promoting Organizational Capacity Development of ASEANSAI in the Period 2018-2023

The development of international audit organizations is crucial for enhancing accountability, transparency, and integration of public sector financial management globally. In Southeast Asia, the establishment of the Association of Southeast Asian Nations Supreme Audit Institutions (ASEANSAI) is significant for fostering regional cooperation in financial auditing. The Supreme Audit Agency of the Republic of Indonesia (BPK RI) plays a pivotal role as the ASEANSAI Secretariat, supporting and developing the organization's performance. As ASEANSAI matures, organizational capacity development becomes a key challenge. This study aims to analyze BPK RI's role in enhancing ASEANSAI's organizational capacity during the 2018-2023 period, utilizing Dillen et al.'s (2019) theory of transition from managerial roles to strategic experts and Walters' (2019) theory of organizational capacity development. Employing a qualitative methodology and conducting in-depth semi-structured interviews with 18 individuals from both internal and external ASEANSAI, the study identified several suboptimal aspects in the Secretariat's role and ASEANSAI's capacity development, including human resource management, financial management, and organizational performance stability. The findings suggest that these issues stem from inadequate strategic human resource development, limited financial resources, and external environmental changes such as the COVID-19 pandemic and regional socio-humanitarian issues.

Effect of internal control systems, implementation of good governance and employee competence on financial management performance

Effect of internal control systems, implementation of good governance and employee competence on financial management performance

THE EFFECT OF GOOD CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE

Companies engage in CSR and GCG activities because they believe it will improve their financial performance. Income uncertainty as an impact of pandemic makes it interesting to examine how company will operate throughout 2019-2021. This study uses data on financial dan sustainability reports from five sectors of manufacturing companies. The proportion of institutional ownership and independent commissioners, as well as the audit quality, are used to calculate GCG. The disclosed activities in SR are measured for CSR. The modified Jones model is used to measure earnings management. ROA, EPS, and Tobin's Q are used to measure financial performance. PLS method and WarpPLS v.8.0 was used to examine the hypotheses in this study. The study’s findings demonstrate that GCG significantly affect financial performance and earnings management. CSR has a substantial effect on financial performance while having no effect on earnings management. Earnings management have no significant effect on financial performance. Meanwhile, earnings management is considered unable to mediate the effect of GCG and CSR on financial performance.

Strengthening Internal Supervision in Improving APIP Capability Achievement at the TNI Inspectorate General

Evaluating APIP capability impacts improving performance and maintaining transparency and accountability standards. Increasing the value of the APIP Capability Model provides a comprehensive framework for analyzing and improving APIP capabilities on an ongoing basis. This study aims to analyze the factors that influence the Government's Internal Supervisory Apparatus (APIP) capability. Analyzing the role of management in achieving the APIP capability level, analyzing the impact of APIP's role in implementing the TNI Government Internal Control System (SPIP), analyzing the importance of APIP capacity building within the TNI, analyzing the relationship between APIP capability and TNI financial management performance, analyzing the impact of the effectiveness of implementing the Internal Audit Capability Model (IACM) in improving APIP capability in the TNI. The steps suggested are a practical analysis of the influence of APIP capability, including management commitment, SPIP improvement, competency improvement, focus on improving financial performance, and implementation of IACM throughout the TNI.

Pengaruh Literasi Keuangan, Inklusi Keuangan Dan Pengelolaan Keuangan Terhadap Kinerja Dan Keberlangsungan Teknologi Keuangan Sebagai Variabel Moderasi

A superior performance in sustainable business can be realized if there are efforts in determining strategy. DKI Jakarta is one of the provinces with a large number of UMKM which has great opportunities to improve the Indonesian economy. This research was conducted to analyze the influence of financial literacy, financial inclusion and financial management on business performance and sustainability with financial technology as a moderating variable. This research is a quantitative research with a sample of 75 UMKM which were then analyzed using the Partical Least Square (PLS) approach. The results conclude that Financial Inclusion has an influence on Business Sustainability, Financial Management has an influence on the performance of UMKM and Financial Management has a positive and significant influence on the Business Sustainability of UMKM.