Financial Managers Research Articles

Financial Statement Comparability and Managers’ Linguistic Choices in Conference Calls

Financial Statement Comparability and Managers’ Linguistic Choices in Conference Calls

Implementation of Digital Payment in Mitigation of Fraud Risk at Hotel Conrad Bali

This study aims to be a fraud risk mitigation strategy in managing payment transactions. This study is a qualitative study. Data collection by interviews, documentation studies, and observations. Data analysis techniques used in this study are data reduction, data presentation, and drawing conclusions. The results of this study indicate that digital payments in payment transactions at Conrad Bali use internet banking. Conrad Bali conducts a longitudinal risk evaluation to identify fraud and applies a clear separation of duties. Conduct routine audits of security systems and internal controls to ensure employee effectiveness. Authorization is carried out with three security procedures, namely transaction maker (account payable and paymaster), approver/checker (chief accountant, OIBH, director of finance, and general manager) and releaser (general manager and owner).

ASSERING THE IMPACT OF MACROECONOMIC INDICATORS ON CORPORATE FINANCIAL PERFORMANCE: AN EMPIRICAL ANALYSIS IN ASIA

This study investigates the impact of macroeconomic indicators, specifically GDP growth and inflation, on corporate financial performance in selected ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, and Vietnam) from 2010 to 2022. Using data sourced from the OSIRIS database and the World Bank's World Development Indicators, the analysis focuses on three key financial metrics: Return on Assets (ROA), Net Profit Margin (NPM), and Market Capitalization (MC). Employing the Generalized Least Squares (GLS) method, the study addresses heteroskedasticity and autocorrelation in panel data, incorporating control variables such as Total Assets, Current Ratio, and Interest Coverage. Results indicate that GDP growth positively correlates with ROA and NPM, underscoring the importance of economic expansion for corporate efficiency and profitability. However, GDP growth does not significantly impact Market Capitalization, highlighting potential differences in market valuation dynamics. Inflation positively affects ROA and NPM, suggesting firms effectively manage inflationary pressures but does not significantly affect Market Capitalization. The findings provide actionable insights for financial managers, investors, and policymakers. Companies should integrate macroeconomic forecasts into business planning and adopt strategies to mitigate inflationary impacts. Future research directions include sector-specific analyses, longitudinal studies, and the incorporation of additional macroeconomic variables to deepen the understanding of these relationships.

CORPORATE DIVIDEND DECISION AND FIRM VALUE IN NIGERIA

Corporate dividend decisions play a significant role in managerial decisions, and is often considered as the fulcrum of financial management decisions. While making these decisions, corporate finance is single-minded about maximizing the value of the firm. But the raging issue has been the lack of consensus on the effect of dividend policy on firm. This study therefore undertakes a comprehensive review of dividend policy theories and empirical studies on dividend policy in relation to firm value, with particular focus on Nigeria. The paper adopts the exploratory research approach using secondary data sources involving extensive review of relevant articles, theoretical and empirical studies, as well as other relevant materials. The paper established that, despite the raging theoretical controversies and contradictions of past empirical findings, there is unanimity among many researchers that corporate dividend decisions exert significant influence on firm value- a position which validates the arguments in favour of the relevance of dividends policy in determining firm value. The paper therefore recommends that finance managers of firms should aim at finding an optimal dividend policy, which is the one that maximizes the company stock price that leads to the maximization of firm value.

Influence of Supply Chain Diversification on the Performance of Large Food and Beverage Processing Companies in Nairobi City County, Kenya

The performance of food and beverage manufacturing companies has become a pressing concern due to the rising incidence of supply chain disruptions, which pose significant threats to achieving operational goals. This study investigates the influence of supply chain diversification on the performance of large food and beverage processing companies in Nairobi City County. Supply chain disruptions have been linked to severe financial repercussions, including lower stock returns and increased failure rates, necessitating innovative management strategies. Utilizing a quantitative correlational research design, the study surveyed all 46 major food and beverage companies in the region, targeting procurement, financial, operations, and supply chain managers. Data collection was conducted via questionnaires, achieving an impressive response rate of 81%, underscoring the representativeness of the findings. Statistical analysis revealed a strong positive correlation between supply chain diversification and organizational performance, with an R-squared value of 0.650, indicating that approximately 65% of performance variability could be attributed to diversification practices. Regression analysis confirmed that each unit increase in diversification significantly enhanced performance metrics. These results align with existing literature, emphasizing the need for proactive diversification strategies to mitigate risks and enhance operational efficiency. Recommendations include continuous investment in diversifying supplier bases, adopting advanced technologies such as artificial intelligence, and implementing regular training programs for staff. Furthermore, strategic partnerships with suppliers and routine assessments of risk management policies are vital for maintaining competitive advantages. This research highlights the critical role of supply chain diversification in enhancing performance in the food and beverage sector, providing insights that are essential for navigating the complexities of modern supply chains. Future research should explore comparative studies across different sectors, longitudinal impacts of diversification, and qualitative insights from industry leaders to further enrich understanding in this area. By addressing these recommendations and research avenues, food and beverage manufacturing companies can enhance their resilience and ensure sustained performance in an ever-evolving market landscape..

A systematic review of the financial issues of higher education institutions (HEIs) and possible strategies to cope with them

The field of higher education has not only been for elites since the last three decades. It has also included the general masses in it. That’s why the transformation of the socio-economic status and general awareness in the present age owes to higher education. On the other hand, challenges have also emerged and set conditions on the path to sustainability. Thus, higher education has faced problems, especially financial problems. These issues further give birth to some other issues. This study is an attempt to understand the issues caused by financial issues. The study also aimed to propose strategies to deal with these issues. Based on the systematic literature review, the problems have been categorized as lack of internet, digitalization, and online teaching; underdeveloped infrastructure for STEAM; lack of priorities; and quality issues. These findings create hurdles in achieving the quality of HEIs. To cope with these issues, clear policy and setting priorities were proposed as the top most important strategies to bring about quality and achieve HEIs’ organizational objectives. It can be concluded that HEIs need appropriate strategic and financial managers and administrators who can align their strategy with the vision and mission of the institutions.

The Role of Gender in Managing Finances among Newly Married Couples in Klang Valley, Malaysia

This study explores the couple's role in managing finances and marital satisfaction from the perspective of newly married couples. By delving into individual demographic and behavioral segments, we reveal how couples manage and plan finances to achieve financial well-being and marital satisfaction, further identifying the role of gender in household financial management. Through a phenomenological method, we conducted semi-structured interviews with seven middle-income newly married couples residing in Klang Valley. Interviews with informants took 6 months between February 2022 and July 2022. The duration of the interview is between sixty and ninety minutes. The interpretation of qualitative data was analyzed thematically using N-Vivo 13 software. The results of the study shed light on the couple's financial management practices to achieve financial well-being and marital satisfaction. The husband is the main pillar in the household's financial affairs. This study offers value in the enrichment of data that reveals couples' understanding of managing finances and plans for their future. By focusing on newly married Malay couples, we gained a deeper insight into simple strategies implemented by household financial managers, division of financial responsibilities, and course of action. Findings that reveal the understanding and behavior of middle-income newlyweds in the Klang Valley towards financial well-being can be used by policymakers, governments, and non-governmental organizations to formulate financial health policies, programs, and campaigns to educate the public about early planning towards financial well-being and enjoying marital satisfaction.

Enhancing financial management in healthcare: The impact of Activity-Based Costing and Time-Driven Activity-Based Costing methodologies in Kordan's private sector in Jordan

This study examines the effectiveness of implementing Activity-Based Costing (ABC) and Time-Driven Activity-Based Costing (TDABC) in Jordan’s private healthcare sector focusing on managing costs while maintaining quality care. A descriptive and analytical approach was adopted involving 213 individuals working in the financial affairs departments of private hospitals in Amman representing various types of institutions. The key variables of interest were the accuracy of cost measurement, expense reduction, cost allocation and various cost management approaches. The main findings indicate that implementing ABC and TDABC significantly improved cost management and cost reduction within these institutions. These systems have been effective in enhancing the accuracy of cost measurement, improving profitability, reducing unnecessary expenses, and achieving better cost allocation, thereby leading to better financial stewardship. This study underscores the critical importance of integrating these systems into healthcare financial frameworks. Moreover, it highlights the need for further training for financial managers and accountants to fully leverage these approaches and contribute to ongoing improvements in healthcare financial management. Additionally, this research presents empirical evidence from an underrepresented region where no prior studies have been conducted, thereby contributing to the existing body of knowledge and offering valuable insights for future initiatives in Jordan. The study also provides useful guidance for implementing these cost-management approaches more broadly in other regions and countries.

Requirements to the position of a financial manager in a modern commercial organization

The article is devoted to the study and identification of new competencies for the position of a financial manager, which an employee in a modern commercial organization must have, as well as the analysis of the requirements that companies impose on financial managers. It considers the role and features of the position of a financial manager in a commercial organization, determines his plays in the job hierarchy of the company. Particular attention is paid to the influence of digitalization and technologies based on artificial intelligence on the work of financial managers in a commercial organization. The article uses such research methods as analysis, synthesis, modeling, observation and comparison, as well as methods of data processing and interpretation. The relevance of the work lies in increasing the interest of financial managers in digital technologies and ways to increase the company’s profits thanks to modern tools. Scientific novelty of the study consists of identifying the relationship between the degree of use of mechanisms based on artificial intelligence in the work of a financial manager with the effectiveness of his activities. The work provides recommendations for changing the professional competencies for a candidate for the position of financial manager in a modern commercial organization. The scientific study was conducted in relation to large companies in various industries and based on analysis of the labor market and job search services.

How do aspirations work? Financial performance shortfalls and firms' green innovation

AbstractResearch on the behavioral theory of the firm (BTOF) highlights the role of performance shortfalls in managers' decision process. However, previous studies tend to ignore the heterogeneity of historical and social aspirations. This paper investigates how firms' green innovation, a typical environmental behavior, differently responds to financial performance shortfalls relative to historical and social aspirations. Based on the view of problemistic search, we argue and find that financial performance shortfalls derived from historical aspiration impair green innovation, whereas financial performance shortfalls derived from social aspiration first reduce and then promote green innovation, demonstrating a U‐shaped relationship. Moreover, we find that the two aspirations may interact to influence green innovation activities. Specifically, the negative effect of performance shortfalls (historical) is more pronounced when the financial performance is below social aspiration, whereas the U‐shaped effect is flattened if the financial performance is at or above historical aspiration. Further, we explore how the effects vary with financial constraints and manager overconfidence to distinguish the underlying mechanisms. Our study extends a nascent understanding of aspiration heterogeneity by revealing firms' different green innovation strategies in response to different aspirations.

GOVERNANÇA CORPORATIVA PARA A GESTÃO FINANCEIRA

The objective of this work is to highlight the importance of corporate governance for the financial management of business organizations. In this sense, a bibliographic research methodology was chosen. Corporate governance fosters the credibility of organizations by providing financial information that determines the decision-making processes of internal and external stakeholders. In this case, the financial manager who practices governance must demonstrate characteristics and competencies focused on ethics and transparency so that the organization's financial performance is achieved through a systemic vision correlated with the internal and external sectors of the companies, permeated by both good governance practices and the increase of investment capital. Thus, corporate governance plays an important role in contributing to organizations by minimizing risks, reducing indebtedness, and increasing the market value of companies that implement it, as it is seen as a factor of respect for those who invest their capital in a business aiming for the profitability of their investment.

GOVERNABILIDADE EMPRESARIAL PELA PERSPECTIVA FINANCEIRA ESTRATÉGICA

every company is made up of several sectors, all of unique importance. There is, however, one that stands out for reflecting a more specific nucleus, whose collection of information has an impact on the business decision-making process, that is, the financial one. The movement and administration of the measured capital are the most challenging tasks for the financial manager, so that it goes beyond mere mathematical calculations. It involves the organizational structure in its systemic view, the mapping of the market with its needs and expectations, the determination of objective criteria, regardless of the unpredictable risk factors. These are able to change the decision chain to the point of transforming business strategic planning and its corresponding way of managing. Then the administrator or the financial manager emerges as the protagonist of the corporation's leverage or setback, insofar as the manipulation of the information obtained, some of which are privileged, may assist in the exact allocation of the funds raised, the results of which may give the company notoriety. Corporate governance thus takes a macro perspective, so that financial strategies will be fundamental to mitigate eventual failures in the business endeavor.

A GOVERNANÇA CORPORATIVA E SUAS CONTRIBUIÇÕES PARA AS FINANÇAS EMPRESARIAIS: A IMPORTÂNCIA DA GOVERNANÇA CORPORATIVA E DO CHIEF FINANCIAL OFFICER (CFO) PARA AS FINANÇAS EMPRESARIAIS

This article introduce a study about the diferents teories of Corporate Governance, Business Finance Management and Administration and the boss role of Chief Financial Officer (CFO) in strategic processes that contribute to financial resourse planning in organizations. It was a literature review of qualitative way, with the objective of identify the principals concepts about the subject of course taken and its applicability to proposed work. The study provided a conceptual analysis about Global Finance, allowing to identify the tools and metods used and it practical applicability to projects that envolve investment analysis and return to companies. Report about the principals responsabilities of financial manager and administrator represented for Chief Financial Officer (CFO), and his collaboration in strategic plan of organizations. The search it was made of exploratory form provided to get importants results that evidence generated changes in finance area through of Corporate Governance.

Effect of Accounting Understanding, Information Technology Use, and Education Level on the Quality of Financial Reports with Human Resource Competency as a Moderated Variable

With human resource competency serving as a moderating element, the purpose of this study is to examine the impacts of accounting expertise, information technology utilization, and educational attainment on the quality of financial reports. This inquiry employs a quantitative methodology. A sample of 120 cooperative financial managers was given a questionnaire to complete in order to collect data in the Lamongan District. The study makes use of SmartPLS 3.0. The study's conclusion implies that an individual's level of education, accounting expertise, and use of information technology all have an impact on the caliber of financial reports. Meanwhile, the impact of accounting knowledge, information technology use, and educational attainment on the caliber of financial reporting cannot be mitigated by human resource expertise.

The Effect Of Audit Committee And Capital Structure On Financial Performance In Energy Sector Companies Listed On The Indonesia Stock Exchange

The purpose of this study is to obtain empirical evidence regarding the influence of independent variables consisting of audit committee size, audit committee independence, audit committee financial expertise and capital structure on financial performance. The companies used in this study are energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2018-2023. The number of research samples was 17 companies with a total of 102 data that met the criteria using the purposive sampling method. The results of the study obtained are that the size of the audit committee and capital structure have a positive significant effect on financial performance. Meanwhile, the variables of the independence of the audit committee and the financial expertise of the audit committee have no effect on financial performance. This study builds on previous research by adding capital structure variables as independent variables. The implication of this research that has been carried out is to provide direction for financial managers in terms of selecting competent audit committee members and paying attention to the management of the capital structure in order to achieve the company's goals. For investors, it is best to choose a company that has an effective audit committee and a balanced capital structure.

The Relationship Between Chief Financial Officer Gender and Investment Efficiency

Objective: This study aims to examine the relationship between the gender of the chief financial officer (CFO) and the efficiency of corporate investment, especially over-investment. Methods: The independent variable is the gender of the CFO and the dependent variable is over-investment. The research method is correlation type and multivariate regression using panel data with a logistic regression model approach. The data of manufacturing companies in the Tehran Stock Exchange has been collected from 2017 to 2021. Results: The findings of the research show that the presence of a female financial manager is significantly related to the reduction of the company's over-investment level, so gender plays a role in the economic decision-making and investment of companies. Conclusion: Female chief financial managers are more risk-averse compared to male chief financial managers and consider the interests of shareholders in the company’s economic decisions. Therefore, companies should pay special attention to gender diversity at the level of company managers in making decisions and economic investments.

The informational relevance of social accounting for the management of financial institutions. A case study: Banca Transilvania Financial Group

This paper analyzes the relevance of social accounting information for managing financial institutions, using Banca Transilvania Financial Group (BTFG) as a case study. It explores how social accounting data can enhance decision-making processes within these institutions. Social information from BTFG’s annual integrated reports was used to construct a social balance sheet, and financial data was collected to calculate economic value added (EVA) and social value added (SVA). Research question include: Does social accounting represent a lever for substantiating the managerial decision in financial institutions? Results show that SVA is a valuable indicator for financial institution managers, reflecting the institution’s contributions to social well-being, environmental impact, and community support. Policy implications suggest regulatory bodies should mandate the inclusion of social accounting metrics in financial reporting standards to encourage socially responsible practices, enhance transparency, and incentivize institutions achieving high SVA. This paper contributes to the literature by demonstrating the practical application of social accounting in financial institutions and highlighting the importance of SVA as a managerial tool. It aligns with existing research on integrating corporate social responsibility (CSR) metrics into financial decision-making, enhancing the understanding of combining social and economic indicators for comprehensive performance assessment The abstract covers motivation, methodology, results, policy implications, and contributions to the literature.

Intraday liquidity risk: based on microprudential and macroprudential regulatory perspective

ABSTRACT This paper addresses the effectiveness of current regulations on intraday liquidity risk through a comprehensive analysis using network structure and payment flow characteristics of China’s large-value payment system. Utilizing simulation and econometric methods, it examines the factors influencing the upper limit of liquidity levels required by payment system participants to satisfy real-time gross settlement (RTGS) and its tail distribution. The results of the study show that: (1) in a network topology, the characteristics of a node significantly affect its demand for intraday liquidity and its exposure to intraday liquidity risk; (2) microprudential regulation based only on individuals not only fails to achieve macroprudential regulatory objectives, but also fails to realize individual microprudential regulatory objectives, and at the same time, it reduces the efficiency of liquidity use; (3) reallocating intraday liquidity among participants based on systemic effects not only saves liquidity overall, but also achieves the macroprudential regulatory objective of liquidity at a high probability level. This study provides valuable theoretical and practical insights for regulators and financial managers, emphasizing the importance of effective regulation to prevent the evolution of intraday liquidity risk into systemic risk.

Unpacking the Impact of Asset Structure and Sales Growth on Capital Structure: The Moderating Influence of Profitability

This study explores the impact of asset structure and sales growth on capital structure, emphasizing the moderating influence of profitability. As firms navigate the complexities of financing decisions, understanding how these variables interact is crucial for optimizing capital structure. The findings reveal that asset structure and sales growth significantly affect capital structure, with profitability playing a critical role in moderating these relationships. Firms with substantial tangible assets are better positioned to leverage debt financing, while those demonstrating strong sales growth are viewed favorably by investors and creditors. However, the extent to which sales growth influences capital structure is contingent upon profitability; high profitability enables firms to capitalize on growth opportunities, whereas low profitability may inhibit their capacity to leverage growth potential. Empirical research supports these conclusions, indicating that asset structure, sales growth, and profitability significantly shape capital structure decisions across various industries. Ultimately, this study provides valuable insights for financial managers, highlighting the importance of balancing growth aspirations with profitability to achieve effective capital structure management. This, in turn, can lead to sustained competitive advantage, a state where a firm outperforms its competitors over a prolonged period in a dynamic economic environment.

Why Do Companies Share Buybacks? Evidence from the UK

We examine the key drivers behind management decisions on share repurchase from various theoretical perspectives, including the free cash flow theory and the signaling theory/hypothesis. Specifically, we investigate the relationship between share repurchase and three key drivers: surplus cash, undervaluation, and leverage, along with several control variables. Using a sample of UK-listed non-financial companies from 2012 to 2022, we apply logistic regression, standard OLS regression, and Tobit regression to identify the factors influencing share repurchase. Our findings reveal that firms repurchase shares to distribute cash to shareholders with surplus cash and Surplus investing cash flow. This study also finds that undervalued smaller firms with lower market-to-book ratios and lower leverage are more likely to repurchase shares. Our study highlights the key factors motivating companies’ share repurchases, such as undervaluation, surplus cash, and leverage, examined from various theoretical perspectives, including the free cash flow theory and signaling theory. Focusing on the UK context, as well as adding a new angle in regard to applying logistic regression, standard OLS regression, and Tobit regression in combination, this research contributes to the existing body of knowledge in corporate finance. The outcome of the study has plausible implications for financial managers and investors in selecting stocks. Its practical implications will help investors gain a better understanding of the factors and forces influencing share repurchase decisions.