Financial Performance Measures Research Articles

The impact of digitalisation on professional football clubs

In the current digital economy, every sort of organization today must invest in dig-italization in order to remain competitive, to enhance business operations, and to increase profitability. Even within professional football clubs, the use of new tech-nologies has become essential, both from a sports point of view, to improve play-ers' performance and team results, and, from an economic point of view, to im-prove company management and increase revenues. The objective of this study, which employs a quantitative research approach, is to identify the sporting, economic, and financial performance measures on which the digitalization of these sectors has a significant impact. Digitalisation was analysed from the perspective of intellectual capital, a general indicator of digitalization was created and calculated for each of the 20 Serie A clubs. It was then associated with the key economic, financial, and sporting performance factors. The analysis showed a significant positive correlation with the following variables: i) final placement; ii) number of goals scored in the season; iii) turnover; iv) annual costs of players and coaches; and v) annual costs of players and coaches plus their depreciation. These results provide insight into how digitalisation is pivotal for professional football clubs and may prove useful for managers and board mem-bers of such clubs, academic researchers and practitioners.

The impact of enterprise risk management on financial performance: Evidence from the GCC Islamic banks

Enterprise Risk Management (ERM) is a contemporary trend that has gained momentum in recent years. ERM is a comprehensive approach to risk management that considers both operational and strategic risks that affect business objectives and success. The present research investigates the impact of ERM on the financial performance (FP) of listed Islamic banks in the Gulf Cooperation Council (GCC) countries. This study takes a quantitative approach, employing secondary data collection methods and content analysis. The study analyses a sample of 221 yearly observations from 23 listed Islamic banks in the GCC from 2011–2020. The ERM implementation and FP measures were derived from previous studies. The study discovered that ERM implementation is associated with an increase in accounting performance but not with changes in market performance for Islamic banks. Our study confirms that Islamic banks perform better in the short term after implementing ERM controls but have no impact on long-term value creation. This study provides valuable insight on the benefits of enhancing GCC Islamic banks' ERM implementation decision-making processes. Finally, the empirical findings can assist managers, policymakers, and regulators in improving bank performance by implementing best practices of ERM in GCC Islamic banks and countries with similar socioeconomic environments.

The role of impartial administration in financial sector performance: A comparative study of Latin America and Sub-Saharan African countries

Abstract Emerging nations are often distressed if their current administration and governance do not align with social and national needs. Among these worries, there is the fear of public funds misconduct and corruption in the nation’s major institutions. Indeed, inadequate administration results in embezzlement of funds, tax evasion, and low bureaucratic quality in all sectors. This study was undertaken to address the role of impartial administration specifically in the financial sector. The research considered a sample size composed of 12 countries from Latin America and Sub-Saharan Africa in the period of 2000 to 2021. The net interest margin was considered a proxy for financial performance measurement. Additionally, an ordinary least squares and quantile regression was performed to record the effect of the variables on financial sector performance. Within this context, the findings exhibited different outcomes for these regions. For instance, in the Latin America region, the results revealed that public sector theft, bureaucratic quality, corruption level, local government index, and inflation have a negative impact on the performance of the financial sector while impartial public administration demonstrated a positive impact on financial performance. On the other hand, the Sub-Saharan African region demonstrated that bureaucratic quality, local government index, and inflation have a significant and positive impact on financial performance, whereas executive embezzlement and theft, corruption level, and government final expenditures were shown to negatively influence financial performance. Finally, the study’s findings provides insights into the policies and strategies to implement in order to support the financial framework.

Improving financial performance through corporate governance management: empirical evidence from listed service firms in Nigeria

This study focused on corporate governance and financial performance of parastatals in Nigeria. Five (5) banks were selected which are First Bank Plc, United Bank of Africa Plc, Guarantee Trust Bank Plc, Zenith Bank Plc and Fidelity Bank Plc. The data obtained to test and validate the hypotheses were from secondary sources concerning the variables of interest. However, the data generated are as follows; 2015 – 2022 (8 years) financial statements of five sampled banks which provided information about the variables tested and discussed. The data analysis revealed that measures of financial performance (ROA, BOD & BS), recorded means and standard deviations of 0.021966, 13.8, 13.8 and 0.0136177, 2.988868, 2.988868 respectively. The low standard deviation recorded by each of the measures of financial performance suggests that the return on asset of the respective sampled banks, members of their board of directors and board size have proximity with their respective average values. The respective minimum values recorded for ROA, BOD and BS are 0.0025847, 2 and 2; whereas the maximum values were 0.0561668, 19 and 19 respectively. This implies that the minimum of all the measures is not below 0.0561668 and the maximum did not exceed 19. It is concluded that Board composition which entails Board of Directors and Board Size has no significant effect of the financial performance of firms. The study recommended that efforts to improve corporate governance should focus on the value of the stock ownership of board members, since it is positively related to both future operating performance and to the probability of disciplinary management turnover in poorly performing banks.

The influence of information technology (IT) on firm profitability and stock returns

This research study examines the impact of information technology on firm profitability and stock returns. Using a comprehensive dataset of firms across various industries, this research employs rigorous statistical analysis techniques to investigate the relationship between IT investments, firm profitability metrics, and stock returns. The study focuses at how IT investments affect financial performance measures including return on assets (ROA) and return on equity (ROE), with P-values of 0.34 and 0.12, respectively. Furthermore, the study investigates the influence of IT on stock returns, taking into account market capitalization, industry trends, and macroeconomic variables. This study's conclusions center on the beneficial association between IT investments and corporate profitability. The T-value for the IT investment has risen to 6.5. The analysis reveals that firms that strategically leverage IT investments tend to experience higher profitability metrics. Additionally, the research demonstrates the impact of IT on stock returns, highlighting the significance of IT as a driver of firm value and investor confidence. Moreover, this study delves into the mechanisms through which IT investments contribute to firm profitability and stock returns. It investigates the mediating role of factors such as process innovation, customer relationship management, and supply chain optimization, which facilitate the translation of IT investments into improved financial performance. The implications of this research are significant for both practitioners and policymakers. The findings provide valuable insights for firms seeking to enhance their profitability and create shareholder value through strategic IT investments. Additionally, policymakers can use these findings to formulate policies and initiatives that promote the adoption and effective utilization of IT in businesses across various sectors

Pengaruh Kinerja Keuangan Terhadap Penerimaan Dana Insentif Daerah Pada Pemerintah Provinsi Di Indonesia

This study aims to prove empirically the effect of financial performance on the receipt of Regional Incentive Funds in provincial governments in Indonesia. Measurement of financial performance uses the Regional Financial Independence Ratio and the Regional Expenditure Efficiency Ratio. The research method used is quantitative method with sample selection using purposive sampling technique in order to obtain 30 provincial governments as research samples within 3 years. The data analysis method used is multiple linear analysis using IBM SPSS Statistics 26. The results of this panel research are that simultaneously the Independence Ratio and the Efficiency Ratio have a positive effect on Regional Incentive Funds. Partially, the Regional Financial Independence Ratio which compares Regional Original Income to total regional income has a positive and significant effect on Regional Incentive Funds. The Regional Expenditure Effectiveness Ratio which compares the realization of regional expenditures to the regional expenditure budget partially has a positive and significant effect on Regional Incentive Funds.

Evaluation of the Effect of Financial Performance on Dividend Payout of Deposit Money Banks in Nigeria

This study evaluates the effects of financial performance measures on the dividend payout of deposit money banks in Nigeria The specific objectives are to determine the effect of earnings per share on dividend per share of deposit money banks in Nigeria, to examine the effect of return on assets on the dividend per share of deposit money banks in Nigeria, to assess the effect of return on equity on dividend per share of deposit money banks in Nigeria and to evaluate the effect of profit for the year on dividend per share of deposit money bank in Nigeria from 2011 to 2020. The proxies for the independent variables, Financial performance, are earnings per share, return on assets, return on equity and profit for the year while the proxy for dividend payout is dividend per. The study adopted ex post factor research design. Secondary data were obtained from the annual audited reports of the banks from 2011 to 2020. Correlation coefficient was used to determine the strength of association among the variables while multiple regression analysis was used to analyze the data obtained. The finding of the study revealed that earnings per share and return on assets had significant positive effects on dividend per share; return on equity had insignificant positive effect on dividend per share while profit for the year had significant negative effect on dividend per share of deposit money banks in Nigeria. The researcher concluded that financial performance measures had significant positive effect on dividend per share except for profit for the year that had negative and significant effect on dividend per share of deposit money banks in Nigeria. It was recommended among others that Management should improve on their Earnings Per Share (EPS), Return on Assets (ROA) and Return on Equity (ROE) as they are of importance in determining the dividend payout of deposit money banks in Nigeria. Banks’ management to design an optimum dividend policy that will enhance per

Application of Dupont-factor analysis to financial performance and market measurement of the southeast Asian hotel industry

The study aimed to explore the critical factors impacting the sustainability and growth of the hotel business in the Southeast Asian market. The study covered observations from the second quarter of 2010 to the first quarter of 2022 quarterly reports of 28 listed hotels out of 85 listed in the Southeast Asia markets. By adopting the Dupont equation’s overall business activities measurement, the study tested industrial growth, instability, and market performance in terms relevant to the operating, investing, and financing activities of hotel companies. It was found that fundamental business activities do explain the growth of the hotel industry, with leverage most significantly impacting industrial growth. Industrial instability and market measurement present weak relevance and irrelevance to fundamental accounting measurements of hotel business activities, respectively.

Analysis of Financial Performance Assessment Using the Economic Value Added (EVA) Method (Study at Bank Muamalat Indonesia 2019-2021)

Evaluation and measurement of financial performance can be assessed using financial ratios. However, management performance and achievements as measured by financial ratios are considered to be less representative of the actual state of the company. So another approach is needed, one of which is the Economic Value Added (EVA) approach. The EVA method can complement the lack of financial ratios and is more accurate in measuring performance and calculating the added value created by the company. This study aims to determine the financial performance of PT Bank Muamalat Indonesia Tbk during 2019-2021 and to analyze financial performance using theEconomic Value Added (EVAs). The type of data used is secondary data that is qualitative in nature taken from the annual report of PT Bank Muamalat Indonesia Tbk for the 2019-2021 period using the documentation data collection method. Based on analysis and calculation sEconomic Value Added (EVA) PT Bank Muamalat Indonesia Tbk in 2019-2021 shows a positive EVA value or (EVA > 0), which means that the financial performance of Bank Muamalat is in good health so that the bank is able to generate added value or profit generated sufficient to cover its operational costs so that the financial performance the company is in an advantageous position.

COMPARING VALUE - BASED AND TRADITIONAL MEASURING TOOLS. EVIDENCE FROM PAKISTAN

This paper's primary goal is to evaluate the assertion that value-based measures are preferable to traditional accounting based financial-performance measures, such as profit after tax (PAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE), and return on investment (ROI), in the non-financial sector of Pakistan, while also providing empirical evidence to support the claim. Additionally, it evaluates and tests the informational value of different performance measures and how they relate to stock return. The sample of 97 non-financial Pakistani companies included in this study was obtained from the Pakistan Stock Exchange (PSX) between 2016 and 2021. The information richness of value-based measurements and conventional performance measures in explaining shareholders' returns is investigated using a variety of regression models. Relative information content tests shows that traditional accounting-based measures such as EPS, ROE and ROA performed better than value based measures in explaining the returns of Pakistan non-financial companies. Incremental information content of value based measures doesn’t have any contribution to information content above traditional performance measures. The claim of superiority of value based measures over accounting-based measures in association with shareholder returns is proved invalid in Pakistan non-financial companies. According to the study's findings, value-based financial performance indicators are not any better at explaining stock returns of Pakistani non-financial enterprises than traditional accounting-based financial performance measures. Panel data are tested using the Hausman's test for fixed and random effects, the variance inflation factor (VIF) test for multicollinearity, and the Durbin-Watson test for autocorrelation in order to ensure substantial results.

Analisis Rasio Keuangan untuk Menilai Kinerja Keuangan Pada Pt Summarecon Agung Tbk

This study discusses the Analysis of Liquidity, Solvency, and Profitability Ratios to assess the Financial Performance of PT. Summarecon Agung Tbk. The purpose of this research is to know and analyze the financial performance at PT. Summarecon Agung Tbk. using the liquidity, solvency and profitability ratio method for the 2018-2022 period. The data analysis technique used is descriptive quantitative through measurement of financial performance measured by 3 ratio analysis, namely: 1) Liquidity ratios (Current Ratio and Quick Ratio), 2) Solvability ratios (Debt to Asset Ratio and Debt to Equity Ratio), and 3 ) Profitability Ratios (Return On Assets and Return On Equity). Based on the results of the study it can be concluded that the assessment of the financial performance of PT. Summarecon Agung Tbk. In terms of the liquidity ratio in terms of the Current Ratio from 2018-2022 is quite good and in terms of the Quick Ratio from 2018- 2022 the company's condition is not good. Assessment of financial performance in terms of solvency ratios in terms of the Debt to Asset Ratio and Debt to Equity Ratio from 2018- 2022 The company's condition is not good because it is above the company's industry standards. And the assessment of financial performance in terms of profitability ratios in terms of Return On Assets and Return On Equity from 2018-2022 is very poor.

Characteristics and Performance of Family Businesses in Wuse Market, Abuja, FCT Nigeria

The unprecedented uncertainties in the Nigerian business environment is negatively impacting business operations and performance. Yet, literature on the association between business characteristics and the financial and non-financial performance of family trading businesses in the Nigerian context is overtly and seemingly scant. Again, family trading businesses are prevalent in Wuse market; one of the largest markets in Abuja, FCT. Taken together, this study seeks to investigate the effects of business characteristics on the financial and non-financial performance of family trading businesses in the market. A cross-sectional survey research design, and criterion and systematic sampling techniques were adopted to collect data from 211 founder/CEOs and the descendant/CEOs of family trading businesses in the market via questionnaire. The generated data were subjected to linear regression analysis. The results showed positive and significant effects. The study concludes that the computation of the overall performance of the businesses based on financial and non-financial performance measures show higher overall performance than when they are computed using financial performance measures alone. Education of the founder/CEOs and descendant/CEOs on how to keep financial records of business transactions, collect the non-financial data based on the non-financial performance measures, and how to use same for the computation of non-financial performance were recommended. The researcher advocates a replication of the study in other contexts using an expanded scope and qualitative or triangulation method.

A Study of Financial Performance Measurement of Small Finance Banks in India Using the CAMEL Model

A Study of Financial Performance Measurement of Small Finance Banks in India Using the CAMEL Model

ANALISIS PERBANDINGAN KINERJA KEUANGAN PERUSAHAAN SEBELUM DAN SESUDAH MELAKUKAN AKUISISI

This study aims to analyze the comparative financial performance of companies listed on the Indonesia Stock Exchange (IDX) that made acquisitions in 2019, two years before and two years after the acquisition. Performance comparison are measured using financial ratios, including ROA, TATO, and DER. This research is quantitative research with sampling techniques using purposive sampling techniques. The data analysis method uses descriptive statistical analysis, data normality test, and paired sample t-test hypothesis testing. Based on the results of research on the entire company, it shows that the ROA, TATO, and DER ratios have no significant difference between before and after the acquisition. The results of this study are used so that companies can pay more attention to the condition of their financial performance between before and after the acquisition so that the company can achieve the expected acquisition objectives, namely generating better synergies in the future. In addition, this financial performance measurement can provide a source of information for investors, related to the condition of the company's financial performance between before and after the acquisition, so that it can provide a consideration for investors when investing in companies that make acquisitions.

Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya

The management of liquidity risk in commercial banks determines the banks' financial performance, which predominantly influences the quality of the loan portfolio and the nature of credit administration programs as a whole. By ensuring that liquidity risk is effectively managed, the primary objective of liquidity risk management is to generate a high-quality, stable, large, and growing flow of net interest income for banks. This objective is achieved by ensuring that banks can meet the needs of their customers. This study determined the effect of liquidity risk management on the financial performance of Kenyan commercial banks. The investigation was founded on the theory of liquidity management shiftability. The paradigm of Positivism served as the philosophical foundation for the investigation. The study incorporated both explanatory and longitudinal research designs into its methodology. The study's target population consisted of 32 Commercial Banks in Kenya. The study utilized panel data consisting of time series and cross-sectional data spanning a decade from 2010 to 2019. Using Eviews, descriptive and inferential statistics were used to analyze the collected data, which was then presented in tables and figures. The study found out that Liquidity risk management had an insignificant negative relationship with ROE (F=0.583912, p<0.05) and ROA (F=2.770410, p<0.05). Arising from the study findings, it is observed that liquidity risk management has a negative effect on financial performance measure either in ROA or ROE, it is recommended that commercial banks should keep this parameter as minimum as possible so as not involve in loss making undertakings.

Impacts of Board Quality on Financial Performance in Conventional and Participatory Banks During and after the Covid-19 Crisis: Evidence from Emerging and Developing Countries

Going back to the governance literature, we found two equates on the correlation between the bank board and financial performance (FP). Firstly, we noticed that, in previous studies, the impacts of board quality on the financial performance of conventional and participatory (Islamic) banks were mixed, unstable, and sometimes contradictory. Secondly, we noticed a total absence of comparative studies showing the importance of the impact of the board composition quality on the financial performance of conventional and Islamic banks during and after the covid-19 crisis. To clarify the ambiguity, in this study, we compared in depth the impact of the board of directors (BOD) on the FP in two cited bank types. FP measures and board quality determinants are collected from 30 countries. The data concern 112 banks of each type that have published their reports regularly. Panel regressions were used to solve the ambiguity of the board quality’s impact on the FP of conventional and participatory banks in the agency theory framework during the period (2019-2022), giving us 448 observations in each sub-sample. Empirical results showed that the BOD negatively affects the FP of conventional banks (CBs), while that of participatory banks (PBs) has an ambiguous impact on their FP.

Demystifying the essentials of entrepreneurial orientation and competence for small retailers: evidence from India

PurposeEnvironmental dynamics affect all sectors, and retailing is no exception. Scholarships reveal that, in such turbulent times, entrepreneurial characteristics are essential for business. In academic research, entrepreneurial characteristics like entrepreneurial orientation (EO) and entrepreneurial competence (EC) are seldom evaluated for retailers. This study aims to decode the impact of small retailers’ EO and EC on firm business performance (BP). It also traces the mediation effect of EC in the relationship between EO and BP.Design/methodology/approachThe study executed among 740 small retailers is a pioneering work to trace EO’s efficacy via EC on the retailer’s BP. The present research is a primal work in the Indian context. This work redesigns the EC scale to suit the retail context and evaluate its mediation role in the EO and BP relationship.FindingsExamining the mediation model through structural equation modelling (SEM) adds empirical evidence to entrepreneurial value creation (EVC) theory and throws light on the indispensable qualities required for small business retailers. The outcomes of the SEM model portray that there is an association between the EO, EC and BP.Research limitations/implicationsThis study, though carried out methodically, it is constrained by the ensuing intricacies. The investigation was limited to the small- and medium-retailers engaged in retailing with a floor space from 500 to 5,000 square feet. All three constructs used in the study are measured using the self-reported perceptual scale, which infuses the subjectivity in the data. Exploring the EO and EC of widely dispersed retailers, examining the entrepreneurial character of large-format independent retailers and evaluating financial performance measures through retailers will add value to the study in future.Originality/valueThe study verified the central role of EC in the intangible resource-reward relationship. Among the five pillars of EVC theory, the role of intention and external finance are not considered in this work. The present work explored the EO and EC of existing retailers, and hence intention is excluded. The study concentrates on small retailers, and the role of external financing is not explored. Mishra and Zachary (2014b) opined that the EVC process should be studied in different context and listed out several prepositions. Considering the role of intention and external financing and studying several prepositions spelt out in the theory in varying contexts will throw more lights on the EVC process.

Financial Performance Information System Using Economic Value Added Method

In the current era of globalization, information is needed in a management organization. Most companies prefer computerized information systems because they simplify performance management. The rapid development of today's technology is also very useful and supports all aspects of life, especially in managing accounting and financial information systems, becoming a financial analysis of a company as a benchmark in assessing company performance. At the place where this research was carried out, there was no financial data to measure financial management performance. Become a reference in evaluating financial reports to assess financial performance in this study. Responding to these problems, it can be formulated to design a financial performance information system by applying the web-based EVA (Economic Value Added) method to assess whether a company's financial performance measurement influences growth or decline for decision makers related to financial management. and investors and provide results to company stakeholders as an evaluation value of financial management. The end result of this research is the EVA value for the company is Rp. 4,267,398,060. And this value can be used as an evaluation of management at the research site.

Do companies that generate profits make economic value added?

This paper focuses on determining the differences between economic value added (EVA), net operating profit after tax (NOPAT), earnings before interest and taxes (EBITDA), and net income or loss for non-financial business entities operating in the Republic of Croatia in the period 2002–2021. The main objective of this paper is to determine whether non-financial activities create economic value added, and rank them according to selected indicators based on EVA. Research results indicate that there were only 27 out of 309 cases where EVA was positive, indicating that only the information and communication sector generated, on average, positive EVA during this twenty-year period. Positive EVA was generated in certain years in companies conducting human health and social work activities, education, mining, and quarrying, as well as in wholesale and retail trade activities, but the average EVA for this twenty-year period in these sectors was negative. At the same time, net income was achieved in 246 cases, and NOPAT in 285. Meanwhile, EBITDA was positive in all cases, demonstrating an obvious discrepancy between EVA and other financial performance measures. Correlation analysis results indicate that there is a statistically significant moderate correlation between EVA and net income/loss, although the correlation is generally stronger between EVA and EBITDA-based indicators. According to research results, the answer to the question in the title of this paper is negative, emphasizing the possibilities of intensive introduction of EVA as a financial performance indicator.

Analysis of Financial Ratios and The Economic Value Added (EVA) Method As a Measurement of Financial Performance to Assess the Health of Banks (Case Study of Banks Registered on The Idx For The 2014-2018 Period)

The study aim to determine how the banking financial performance based on the Financial Ratios and Economic Value Added (EVA) methods for the 2014-2018 period. The type of research is descriptive quantitative approach using secondary data obtained from idx.co.ix. The study took samples of banking companies listed on the BEI. The sampling methoos is nonprobability, and the sampling technique used purposiv sampling and 17 samples are obtained. The result of the study showed that the liquidity ratio which waas posited wot a long to deposit ratio from three years in a row showed good value. Solvability ratio calculation result which are proxied by the primary ratio show the results above the primary ratio value. The result of the calculation of probability ratios which are proxied by returnon asset and return on equity then to fluctuate. The result of the calculation of ecomonic value added produce economic added value for shareholders.