Financial Performance Evaluation Research Articles

An Analysis of the Financial Performance Metrics for the Companies Listed on the Iraq Stock Exchange

Both theoretical research and analytical investigation are included in the study. To emphasize the significance of this subject in explaining the financial status of businesses, the theoretical study focused on the subject of financial analysis and performance evaluation in general and company performance evaluation in particular. This causes the investor to seek out financial information about businesses, which increases the investor's dependence on these statistics and increases the investor's trust in the businesses that it might invest in. The relevance of financial indicators in assessing a company's liquidity, capacity to pay long- and short-term obligations, and capacity to make a profit was another topic covered in this study (Tahu & Susilo, 2017). Regarding the analytical or practical component, it involved the analysis of a sample from Al-Hamra Insurance Company, an insurance provider registered on the Iraq Stock Exchange. The research arrived at the prospect of relying on the information provided by the company in its latest financial statement after applying financial indicators to the research sample through a re-analysis of its financial performance.

Non‐GAAP earnings and executive compensation: An experiment

AbstractLiterature suggests investors react to the presence, presentation and prominence of non‐GAAP earnings disclosures. We extend this literature by considering the purpose of non‐GAAP earnings disclosures and their effect on investors' judgements and decisions. We find when non‐GAAP earnings are used to determine executive compensation, investors assign a higher evaluation of financial performance and invest more capital. Consistent with attribution theory, our mediation model finds that using non‐GAAP earnings to remunerate executives strengthens the informative perception of non‐GAAP earnings disclosures, influencing their evaluation and investment decision. Contrary to prior literature, we find investors intentionally rely on non‐GAAP earnings in decision‐making.

MEASURING THE FINANCIAL PERFORMANCE OF AGRICULTURAL ECONOMIC UNITS BASED ON THEIR REPORTING OF BIOLOGICAL (AGRICULTURAL) ASSETS, IN TERMS OF IPSAS 27

This study underscores the significance of accounting for biological (agricultural) assets within the Horticulture Office of the Iraqi Ministry of Agriculture, in strict compliance with proposed International Public Sector Accounting Standards (IPSAS). Specifically, it emphasizes the importance of proving accounting operations and presenting critical financial statements, such as the statement of financial position, statement of financial performance, statement of changes in net assets/equity, and statement of cash flows, in a manner consistent with the fair value of current biological assets and the revaluation of non-current assets (perennial plants). The study also delves into the relevant accounting treatment for revaluation differences and their impact on financial statement preparation. These measures are urgently required to tackle the challenges facing the current government accounting system in Iraq, which have adversely impacted the comprehensiveness of government financial reports and compromised the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture. One of the research's salient findings is that preparing financial statements in accordance with IPSAS for the public sector can provide users with more insightful information for informed decision-making. Among the key recommendations is the need to represent financial information for events and transactions that transpire during the financial year in a transparent and accountable manner, through the adoption of IPSAS standards. This, in turn, ensures the preparation of high-quality financial reports that are rich in qualitative accounting information, thereby enhancing the evaluation of financial performance, planning, control, and strategic decision-making for the Horticulture Office of the Ministry of Agriculture.

Financial Performance Evaluation of Kweichou Moutai Based on the Comparison of Companies in Liquor Industry

The liquor industry has rebounded in recent years, especially in the high-end liquor market competition (represented by Kweichou Moutai and others) has gradually stabilized. However, many liquor companies are still facing multiple challenges due to the macro environment and industry environment. Therefore, this paper explored the financial situation of representative enterprises in the high-end liquor industry, selecting three listed high-end liquor companies as the research sample and conducting factor analysis based on their financial report data from 2019 to 2022 to rank the performance of the enterprises, focusing on the competitiveness issues of the industry leader Kweichou Moutai. According to the anlaysis, Kweichou Moutai had a significant advantage in profitability. Conversely, Moutai's growth ability was a shortcoming that needed to be focused on. This paper offers an in-depth analysis of Kweichou Moutai's weaker growth capability so as to provide a reference for each liquor company to improve its market competitiveness and the healthy development of the liquor industry.

Financial performance evaluation and forecasting of enterprises by the combination of PCA and CNN deep learning

Financial performance evaluation and forecasting of enterprises by the combination of PCA and CNN deep learning

ANALISIS SWOT ATAS STRATEGI EKSPANSI RUMAH SAKIT HM DITINJAU DARI KINERJA KEUANGAN DAN NON KEUANGAN

This study aims to evaluate the expansion strategy at HM Hospital using a SWOT analysis based on its financial and non-financial performance. The theory and concepts used are Resource Based View Theory (RBV), SWOT analysis, theory of performance, and expansion. This research uses quantitative and qualitative methods based on case study analysis of HM Hospital. The results showed that the financial performance of HM Hospital based on financial ratios was still quite good in terms of liquidity, activity, solvency and investment ratios. However, in terms of profitability, it has not achieved sustainable profits and has tended to still suffer losses in the last four years. Based on non-financial performance, HM Hospital which operates distinctive of heart and internal medicine is already good in terms of buildings, technology, organization, innovation, reputation and services that focus on middle to lower patients. HM Hospital focuses on the best cost strategy to peak.competitive advantage. Based on the evaluation of financial and non-financial performance, HM Hospital can focus on four strategies, it is ST(Strength-Threat), SW(Strength-Weakness), WO(Weakness-Opportunity) and WT (Weakness-Threat). By maximizing it, HM Hospital's future expansion strategy can be growth by opening new branches in the form of clinics or hospitals and successfully being listed on the Indonesia Stock Exchange (IDX) in 2024 with careful preparation and planning.

Strategic Financial Management: Understanding the Dynamics of Financial Strategy, Performance and Investment Decisions

This research aims to delve into the intricacies of strategic financial management, performance evaluation, and investment decision-making processes within organizations. Employing a qualitative analysis and comprehensive literature review, the study explores various dimensions of these critical areas to uncover valuable insights. The research underscores the multifaceted nature of financial strategy dynamics, emphasizing the importance of aligning financial strategies with broader organizational goals, considering risk tolerance, cost of capital, and market dynamics. Moreover, it highlights the evolving nature of financial strategies in response to industry trends, technological advancements, and regulatory requirements. Performance evaluation dynamics are examined, advocating for a holistic approach that comprehensively integrates financial and non-financial indicators to assess organizational performance. Investment decision-making processes are also scrutinized, focusing on the need for organizations to adopt flexible and adaptive strategies amidst globalization, technological disruption, and changing consumer preferences. The findings underscore the significance of strategic alignment, innovation, and risk management in driving organizational success and sustainability. Overall, this research contributes to a deeper understanding of strategic financial management practices and provides valuable insights for organizational decision-makers.

Examining Financial Strategy Management: Understanding Financial Performance, Investment Decisions, and Strategic Approaches through Qualitative Description and Literature Review

This research delves into the complexities of financial strategy management through a qualitative examination and literature review, aiming to illuminate key insights into managing financial performance, investment decisions, and strategic approaches within organizations. The primary objective of this study is to provide a comprehensive understanding of financial strategy management by synthesizing existing knowledge and identifying gaps for further exploration. The research methodology involves a qualitative description and literature review, drawing upon seminal works by renowned scholars in finance, economics, psychology, and strategic management. Findings from the literature review underscore the multifaceted nature of financial strategy management, emphasizing the significance of adopting a balanced and comprehensive approach to financial performance evaluation, integrating both quantitative metrics and qualitative insights. Moreover, the research highlights the pivotal role of investment decisions in driving organizational performance outcomes, elucidating insights from modern portfolio theory, behavioral finance, and empirical studies. Additionally, the study identifies diverse strategic approaches in financial management, ranging from Mintzberg's ten schools of strategy formulation to Porter's competitive strategy frameworks, emphasizing adaptability, innovation, and strategic flexibility in navigating dynamic business environments. The research contributes theoretical insights by enriching existing frameworks and offers practical implications for managerial practice, guiding organizations in enhancing financial management practices and achieving sustainable competitive advantage.

A FAHP AND VIKOR METHOD FOR EVALUATION OF THE FINANCIAL PERFORMANCE OF AGRICULTURE COMPANIES LISTED ON THE BELGRADE STOCK EXCHANGE

Decision-making can be improved by using different models by financial statements users for different purposes. In this paper, the FAHP model was implemented for financial performance evaluation of companies operating within the A-agriculture, forestry and fisheries sectors on the Belgrade Stock Exchange. In addition, we used the VIKOR method, for ranking companies against the results achieved. With all the constrains shown, the research presented in this paper, raises questions for insight and future development, through the possibilities of ranking the financial performance of the company.

An evaluation of financial performance of vietnam textile and apparel industry using Entropy-TOPSIS method

Vietnam is one of the world’s top five exporters of textiles and apparel. Textile and apparel companies not only account for a large amount of foreign currency revenue to the state budget, but also contribute to job creation. Therefore, it is of great importance to learn about the financial stability of this strategic economic industry and the issues it needs to address currently or in the future. This study attempts to evaluate 11 Vietnamese textile and apparel companies based on their financial performance using the entropy-TOPSIS method. Seven financial stability ratio data of these companies within the period 2016-2018 were formulated and used for ranking. The ranking shows the degree of their business’s financial stability and security. Moreover, the findings may provide company-level managers and industry management officials with insight into the industry’s financial stability. Managers can see their financial stability status among others in the industry, while officials can identify companies that need government support for funding or interest rate adjustment.

Significance of Corporate Non-Financial Information Disclosure for Sustainable Economic Growth

According to the objective of achieving "an intelligent, sustainable and inclusive growth" in the European Union (EU) 2020 agenda, the information disclosure regarding sustainability of large companies mainly aims to contribute to the potential of the single market, thus creating sustainable development and employment levels. It is very important for companies to increase their transparency for interested parties, improve their risk management and provide better results. High transparency, including the diversity of management bodies, determines the trust growth of people in companies and markets, and allows more efficient capital distribution and the possibility of making a more realistic decision (e.g., by investors) according to available information. For current challenges, such as global warming, effects of the consumption society on environment, emphasis of disparities, worsening of environmental problems and urbanization of population, related replied have been made, representing that more efforts have been made for the transition towards a green model and for meeting the sustainable development objectives. Significant steps have been taken in this direction, but greater efforts should be made. The new economic system should rely on sustainable development, which is the solution to overcome current social, environmental and economic problems. Non-financial reporting is just a tool. In order to add value, companies should use the tool to contribute more, thus being closer to the global initiatives related to the green economy and building a sustainable society. Increase of these global trends has a significant impact on business environment, leading to measures taken immediately. Therefore, the true benefits of non-financial reporting will not be noticed unless entities change their focus from strict evaluation of financial performance to non-financial elements and integrate sustainability in their business model. Meanwhile, companies should focus on reporting the aspects, which are significant for them, the interested parties and the investors, and ensure that all these aspects are communicated to the management. Analysis of the non-financial information, presented by the active entities in the field of electrical energy production in Romania between 2017-2020, showed that only six companies met the legal requirements of non-financial information disclosure, which are state-owned companies with full or majority state capital and state-owned companies/societies.

Analyzing the Relationship among Social Capital, Dynamic Capability, and Farmers' Cooperative Performance Using Lightweight Deep Learning Model: A Case Study of Liaoning Province.

The purpose of this study is to understand the relationship between social capital and the performance of Farmers' Cooperatives (Cooperatives) and explore the internal mechanism of social capital affecting the performance of Cooperatives. This work selects two dimensions: cognitive social capital (CSC) and structural social capital (SSC), as indexes to measure the social capital of Cooperatives. An analytical framework is proposed: "Social capital-Dynamic capabilities-Organizational performance." First, according to the characteristics of Cooperatives, it determines the most appropriate index values and preprocesses the original data. Statistical Product and Service Solutions (SPSS) and Analysis of Moment Structure (AMOS) 25.0 software are used for factor analysis. A financial performance evaluation model of Cooperatives based on backpropagation neural network (BPNN) is constructed. Then, based on the survey data of 212 Cooperatives in Liaoning Province, the structural equation model (SEM) is used to test the interaction path between "Social capital-Dynamic capacity-Organizational performance." The results show that SSC's standardized regression coefficients (SRCs) on Cooperatives' economic benefits and member satisfaction are 0.208 and 0.095, respectively, significant at 1%. The actual case analysis concludes that the larger the scale of the structural network embedded in Cooperatives is, the more conducive it is to obtaining extensive resources. As such, Cooperatives can absorb the advanced experience and compensate for the weakness of lack of internal resources and experience. The SRC of CSC on Cooperatives' economic benefits is 0.336, and the P value is 0.204, indicating an insignificant impact of CSC on Cooperatives' economic benefits. This work considers environmental variability, uses dynamic capacity as an independent variable, opens the "black box" between social capital and the performance of Cooperatives, and reveals the intermediate path between the two.

Kier Group Plc: business and financial performance analysis and evaluation

Kier Group Plc: business and financial performance analysis and evaluation

Research on Impact of Internet Corporate Social Responsibility on Corporate Financial Performance Based on Linear Regression Model

Since China was fully connected to the Internet, the local Internet has continued to grow along with its economic strength, and Internet companies such as artificial intelligence, e-commerce, big data, block chain and electronic payment have risen rapidly. In the process of development, Internet enterprises realize the importance of social responsibility and take the initiative to shoulder social responsibility, and make a lot of contributions to the society. The relationship between social responsibility and the financial performance of Internet companies has always been the focus of academic and research discussions. Based on the linear regression model, innovation capability was introduced to explore the boundary conditions between social responsibility and the financial performance of the companies. An empirical study was conducted using a research sample of listed Internet companies in China from 2018 to 2020. The results show that (1) social responsibility of the Internet corporate has a positive effect on short-term financial performance, (2) Internet corporate social responsibility has a positive effect on the long-term financial performance of enterprises, (3) innovation capability weakens the impact of Internet corporate social responsibility on short-term financial performance, and (4) the influence of innovation capability on the long-term financial performance of Internet companies in social responsibility. The research conclusion provides Internet enterprises with social responsibility strategies and evaluation of long-term and short-term financial performance.

Capturing the Effect of the COVID-19 Pandemic Outbreak on the Financial Performance Disparities in the Energy Sector: A Hybrid MCDM-Based Evaluation Approach

The COVID-19 pandemic has impacted the financial performance of companies in different sectors. One of the most important sectors affected is the energy sector. Therefore, this research study aims to conduct a financial performance evaluation of companies in the Saudi energy sector in 2019, 2020, and 2021. This is to capture and analyze the effect on companies before, during, and post the COVID-19 pandemic, respectively. A hybrid multicriteria decision-making (MCDM) approach is followed to achieve the objective. The financial performance evaluation of energy companies is based on four financial dimensions and 11 performance indicators. Results revealed that energy companies’ efficiency and profitability were relatively the most important dimensions, followed by leverage and liquidity. Furthermore, results revealed the relative importance of the indicators from the most to the least important. Results also revealed the effect of COVID-19 on energy companies’ financial performance, demonstrating the change over the three years. Implications include providing insights for energy companies on the financial dimensions and indicators to be maintained and monitored in the case of pandemics. Furthermore, to assist decision-makers in the energy sector in developing strategies to mitigate financial performance disparities during and post-pandemics.

Research on Performance Evaluation of Listed Companies Based on Value Creation

The goal of business operation is to create value and maximize shareholders' wealth. However, the current financial performance system still has certain defects, which cannot yet reflect the results of value creation comprehensively and make it difficult to examine the value creation ability of managers. Therefore, how to efficiently examine the value created by executives and reflect the true performance of executives will be the focus of future performance reform of enterprises. Based on the needs of value management of listed companies, this paper analyzes the key drivers affecting value creation and optimizes the financial performance evaluation system with appropriate correlation pointing indicators, hoping to guide corporate governance and improve the capital market investment and financing environment.

Stock Valuation and Financial Performance of Nickel Mining Company in Indonesia (Case Study: PT Vale Indonesia Tbk)

Indonesia is home to 22% of the world’s nickel deposits, and its restriction on nickel ore exports since 2020 has resulted in significant changes to the supply chains of vital items such as electric vehicles and the stainless steel sector. Approximately 75% of nickel is used in the manufacturing of stainless steel, the most common use of nickel. However, nickel is also essential for the fabrication of electric vehicle (EV) battery cathodes, which are required for the shift to green energy. Current EV battery demand accounts for around 7% of worldwide output, but anticipated increases in EV demand will result in an exponential increase in nickel demand. The exponential increase in nickel demand led to volatility in global nickel prices. Volatility in global nickel prices is affecting companies that operate nickel mining businesses. PT Vale Indonesia Tbk (INCO) is listed on the Indonesia Stock Exchange as one of the nickel mining firms operating in the nickel mining business (IDX). The volatility of the global nickel price is both a breath of fresh air and a problem for the firm. INCO may also participate in and benefit from the rising worldwide demand for nickel in the foreseeable future. The primary objective of this study is to evaluate the intrinsic value of a nickel mining company in order to assist investors in making decisions in the current market environment. Evaluation of financial performance over the last five years and projections for the next five years using absolute and relative valuation methodologies. The author suggests investors to purchase this stock using a risk-reward assessment suited to each investor’s circumstances and the potential return earned. Referring to the stock valuation evaluation, investors are recommended to purchase if the price of INCO falls below the range of IDR 6,051 to IDR 6,335. When the market price is inside and above the intended range, it is not advisable for an investor to purchase INCO.

Discussion on key technologies of big data in financial budget performance management in low-carbon economy

Reducing energy consumption, pollution and waste emissions are the basic elements of the concept of low-carbon economy. There is an inseparable link between low-carbon economy and financial work in enterprises. In terms of financial work, it is an indispensable element in the development of enterprises. In order to help enterprises improve their financial performance with pertinence, comparability and applicability, this paper selects clear enterprise performance evaluation indicators for analysis from the financial perspective. It aims to help enterprises save energy in a low-carbon economic environment. In this study, the performance evaluation system and financial allocation method of Anhui enterprises’ financial expenditure are studied. In the empirical analysis, 10 ordinary enterprise undergraduate colleges in Anhui Province are selected as samples. This model covers the performance evaluation scope of most financial expenditures of general enterprises in Anhui Province, and is analyzed in the process of DEA model analysis. In the process of DEA model analysis, it can better explain the input-output performance of Anhui enterprises. In this paper, financial expenditure performance evaluation indicators designed based on principal component analysis, data envelopment analysis and other analysis methods can focus on reflecting the input and output of enterprises. It can realize the standardization of evaluation results and better compare the efficiency of financial capital expenditure between enterprises. In other words, the concept of low carbon in enterprises has given a certain standard for the development of financial work. The financial department of the enterprise must fully implement the concept of low carbon during the budget period. Only in this way can we effectively promote the development of enterprises towards low-carbon and environmental protection. Finally, it will lay a solid foundation for the sustainable development of the enterprise.

Analysis on the digital transformation index system of enterprise’s low carbon business performance based on AHP-DEA

With the arrival of the low carbon era, enterprises, as the main body of the market economy, must take the road of low carbon operation whether to fulfill their social responsibilities or to seek enterprise development. However, Chinese enterprises started late to understand the low-carbon economy. So far, except for a few state-owned enterprises, some leading private enterprises and foreign-funded enterprises, they have made remarkable achievements in low-carbon emission reduction. Most enterprises in China have not realized the importance of low carbon emission reduction. In order to step out of the “high carbon” era and coordinate economic development and environmental protection, China must solve the problem of low-carbon transformation of small and medium-sized manufacturing enterprises. How to measure the degree of low carbon transformation, and how the government objectively evaluates the degree of low carbon economic development of enterprises, with a view to formulating corresponding standard incentives and punishment measures for them. It is urgent to establish a sound, reasonable and feasible low carbon operation management indicator system, and comprehensively evaluate the information related to low carbon operation of SMEs through reasonable selection of indicators. According to the connotation of low-carbon enterprises, the economic benefits of enterprises are closely combined with environmental benefits. A set of low carbon operation performance evaluation index system including economy, technology and environment has been constructed. The AHP index weight is calculated by establishing the AHP model and the Data Envelopment Analysis (DEA) index weight is calculated by establishing the DEA model. On this basis, the grey relational evaluation model based on AHP-DEA is established. Then the paper evaluates the performance of representative enterprises’ low carbon operation. Propose corresponding improvement suggestions for the problems reflected in the low carbon operation performance ranking of enterprises and the scoring of various indicators. The research results show that the algorithm has high efficiency and the accuracy of model evaluation is 95.51%. To a certain extent, this study makes up for the research results of the impact of digital transformation on corporate strategic performance, and also provides ideas for the research of corporate financial performance evaluation.

Financial performance evaluation of Chinese smart logistics enterprises

Under the background of "Industry 4.0" and "Internet +" development, the intelligent logistics system is the only way for the development and transformation of China's logistics industry. However, at present, the scientific research investment and intelligent equipment purchase and repair costs of the smart logistics transformation of logistics companies is huge, and it is difficult to maintain the balance between the production cost and profit. Therefore, how to evaluate objectively, fairly and effectively the business performance of enterprises has become an urgent problem to be solved by China's smart logistics enterprises. Based on this, this paper selects the wisdom of 18 listed companies in the logistics industry financial performance evaluation, financial indicators and the financial indicators for soft, respectively from five different dimensions to establish index system, using the entropy method of objective evaluation, finally get the enterprise financial performance evaluation, and according to the industry situation put forward the corresponding policy Suggestions.