Improvement In Financial Performance Research Articles

The financial impact of the financial fair play policy on Spanish football

PurposeThis study aims to explore how responsible corporate behaviour, specifically self-imposed financial regulatory control, might subsequently be reflected in the financial performance of companies subject to such regulation.Design/methodology/approachIn this study, the authors aim to explore how financial compliance in the form of the Economic Control Regulation (ECR) has impacted on the financial performance of professional football clubs in Spain. To this purpose, the authors adopted a quasi-experimental before and after study design. This type of design assesses the object of study before and after a specific event in order to determine whether this event has had any effects on the object. In this case, the event was the coming into effect of the ECR in the fiscal year of 2012, and the object hypothetically affected was the clubs’ economic performance.FindingsThe authors can confirm that in general terms and for the whole set of clubs analysed, the ECR has had a strong and positive effect on financial performance.Research limitations/implicationsIn this study, the authors wish to establish a link between the idea of “compliance” and that of “responsible corporate management practice”. It is not just a matter of compliance with the law. The fact of complying with certain laws could, in general terms, or from the point of view of common sense, be qualified as “responsible behaviour”. However, under the contemporary concept of corporate responsibility, compliance with the law is a behaviour that must be taken for granted. Responsibility, therefore, would entail going beyond such expected behaviour to one that exceeds the environment's expectation of the corporate actor.Practical implicationsWhat extent improvements in financial performance have also boosted social performance. Confirming such a positive effect endorses the argument that ethical improvements in corporate culture have a general effect on business sustainability in its different aspects: economic, social, environmental and in governance.Social implicationsThe authors may foresee that the culture of compliance will spread from the finance departments to other management areas. Its connection with ethical business practice is directly linked to the more complex concept of the “citizen company”. There are suggest interesting bases on which professional football clubs might move from a traditional profit-oriented company model towards a more contemporary one oriented towards relationships of integrity with the sport's environment. This study shows that the ECR has been a starting point for the development of Spanish professional football clubs towards this type of “citizen company”.Originality/valueIt was a single-sector study whose principal value lies in the verification of whether responsible economic management (the main consequence of applying the ECR) had any effects on company profits, financial results and other important indicators. In addition to fostering responsibility, this new management model involves a special innovation, as it is based on self-regulation (i.e. on regulations not imposed by national or supranational states), designed and implemented to ensure the sector's viability.

Effect of Internal Control Systems on Financial Performance of Public Universities in Kenya

Most public Universities across the world have reported suboptimal financial performance compared to private universities. The poor financial performance can be attributed to financial management practices. The sound financial management practices require the institutions to have robust internal control systems. However, there are limited empirical research findings regarding the relationship between the internal control systems and financial performance in public universities in Kenya. The general objective of the study was to establish the effect of internal control systems on financial performance of public universities in Kenya. The study specific objective was to investigate the effect of detective controls on the financial performance of public universities in Kenya. The study was anchored on agency theory, stewardship theory, systems theory and attribution theory. The study adopted a causal research design. The target population of respondents were the deputy vice chancellors finance, registrar finance and administration, ICT personnel, finance officers and internal auditors in the 37 public universities in Kenya. The target population was 185 respondents. The study worked with a sample of 34 public universities through stratified random sampling, and the other three were used for pilot testing. Primary data was collected from sample population using semi-structured questionnaires. Secondary data was collected through evaluation of reports, organizational journals, publications and review of information from the organizations website. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS). All the questionnaires received were referenced and items in the questionnaire coded to facilitate data entry. After data cleaning which entailed checking for errors in entry, descriptive statistics and frequencies were estimated for all the variables and information presented inform of tables, graphs and pie charts. Descriptive statistics and inferential statistics were used because they enabled the researcher to meaningfully describe distribution of scores or measurements using a few indices. Inferential data analysis was done using Pearson Correlation coefficient and regression analysis. Regression analysis was conducted to empirically determine whether detective controls were significant in determining the financial performance of public universities in Kenya. Regression results indicated the goodness of fit for the regression between detective controls and financial performance was strong. From the regression model, detective controls and financial performance to a constant zero, financial performance would be 3.132. It was established that a unit increase in detective controls would cause an improvement in financial performance by a factor of 0.237. This clearly showed that there was a positive relationship between detective controls and financial performance. P-value was less than 0.05, which showed that variables covered in the study on detective controls were statistically significant to influence financial performance. The study concluded that detective controls had a positive and significant influence on the financial performance of public universities in Kenya. Keywords: Internal control Systems, Detective Controls, Financial Performance DOI: 10.7176/RJFA/12-16-09 Publication date: August 31 st 2021

Impact Investing in Disadvantaged Urban Areas

We examine whether impact investing is more effective in fostering business venture success and social impact when directed toward ventures located in vs. outside disadvantaged urban areas (i.e., areas with high crime, unemployment, and poverty). We explore this question in the context of loans made to business ventures located in French “banlieues” vs. “non-banlieues”. We find that loans issued to banlieue ventures, compared to non-banlieue ventures, yield greater improvements in financial performance, as well as greater social impact in terms of the creation of local employment opportunities, quality jobs, and jobs for minorities—all of which contribute to the social inclusion of marginalized communities and the development of sustainable cities.

The Impact of Carbon Disclosure on Financial Performance under Low Carbon Constraints

In the context of low-carbon constrained development, in order to avoid the risk brought by climate change, more and more companies choose to disclose carbon information, respond to the national policy of carbon emission reduction and focus on the sustainable development of enterprises. This paper will investigate the impact of carbon disclosure on financial performance based on the 2011–2018 CDP report, taking the Fortune 500 companies as a sample. The study finds that for carbon-intensive industries, carbon disclosure cannot significantly contribute to the improvement of financial performance in the current period, but for carbon-non-intensive industries, carbon disclosure can significantly contribute to the improvement of financial performance in the current period, and the positive impact of carbon disclosure on financial performance in the current period can be extended to the next period. Finally, based on the findings of the empirical study, this paper puts forward policy recommendations for the construction of China’s carbon disclosure system.

Modern approaches to improve the efficiency of talent management in a company with a complex structure

Subject. The article considers the issue of improving the system of talent management aimed at increasing its efficiency. It presents an overview of works dedicated to the study of the nature of talent in the context of searching effective forms for organisational talent management in a company with a complex structure. Objectives. To describe the methods used to assess the effectiveness of talent management in an organisation with a complex structure, to identify their strengths and weaknesses. Methods. The study used the method of the assessment centre to assess the impact of talent indicators on the final financial results of the organisation, and a balanced method of assessing the effectiveness of talent management. Most organisations with complex structures do not run special programmes aimed at the development of professional competencies of talented employees, which eliminates the possibility of a systematic approach to this task. Another problem is that organisations with complex structures have no system of methods of performance-based talent ranking, which would greatly facilitate the assessment of the talented employees’ performance. A discrepancy between the theory and practice explains the necessity to develop a method to evaluate the performance of talented employees’ and their contribution to the implementation of the strategy aimed at the improvement of financial and economic performance in an organisation with a complex structure. Conclusions. The process of talent management in an organisation with a complex structure will be efficient if an adapted project process method is implemented. The method involves creating individual "performance and effectiveness charts" to evaluate the performance of talented employees, which ultimately will enhance their motivation and improve the financial and economic performance of the organization. This methodology takes into account each completed project, highlighting in the final report both incurred expenses associated with the participation of the talented employee in it and the revenue derived as a result of their work.

An Assessment of Financial Performance and Service Facility Improvement after Merger and Acquisition of Financial Institutions of Nepal

Merger and acquisition are one process to integrate the two or more similar types of institutions into one institution. Basically, more banking sectors are gone in merger and acquisition in Nepal. Nepal Rastra Bank has introduced the Merger by law – 2068 BS with the objective of reducing the number of BFIs, enhancing financial stability and promoting public confidence on the banking sector, which encouraged and compelled the banking sectors to proceed the merger and acquisition process for their long-term sustainability. Considering this status, the study was conducted to identify the impact of merger and acquisition on financial performance and service quality of financial institutions of Nepal. The study was conducted covering the category A and B bank which were established after merger and acquisition process. It was a cross-sectional study conducted among the 385 employees of banking sectors. The result shows that the financial performance and service quality of both types of banks (category A and B) was significantly difference in post-merger situation because the p value of t-test was less than .05 significant level.

KAJIAN MENGENAI KEMAMPUAN MODAL SENDIRI DALAM MENJAMIN KESELURUHAN HUTANG PERUSAHAAN (Studi pada Perusahaan Bisi International Tbk Tahun 2017-2019)

This study aims to analyze the ability of its own capital owned by Bisi International Tbk to guarantee all of its debts. So the approach used is a case study. Data collection is done by documentation method and the data taken is secondary data. The data comes from the 2017- 2019 financial statements. The analysis technique in this study uses financial ratios, namely comparing total debt with own capital. The results of research and studies reveal that the company's financial condition, especially the guarantee of capital on debt, tends to be in good condition. This can be seen from the amount of each rupiah of own capital that is able to cover every rupiah of costs. This research needs to be expanded by analyzing the relationship and the influence of other components that affect the improvement of the company's financial performance.
 
 Keywords: Current Debt, Long-Term Debt, Own Capital

PENERAPAN MODEL ALTMAN Z-SCORE DALAM MENGUKUR POTENSI KEBANGKRUTAN (STUDI KASUS PADA PERUSAHAAN PERBANKAN BUMN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2018 & 2019)

Abstract: This research is a sustainability research, which uses the same non- manufacturing Altman Z-Score model, with the aim of re-examining the financial health sustainability of the four BUMN banks that the author has studied in 2017 and in 2019. The four BUMN banks are Bank Negara Indonesia (Persero) Tbk PT, Bank Rakyat Indonesia (Persero) Tbk. PT, Bank Tabungan Negara (Persero) Tbk PT, Bank Mandiri (Persero) Tbk PT. The results showed that PT. Bank BTN (Persero) Tbk has a Z-score that has improved in 2018 and 2019, compared to previous years, namely in 2014, 2015, 2016, and 2017. Currently PT. Bank BTN (Persero) Tbk., has moved from the potential financial distress into a "gray area" (improving). Meanwhile, the other three BUMN banks are consistently in the gray area category with a Z-score above 1.2 but below a Z-score of 2.9. The results of this study also show that there is a significant financial performance improvement in every BUMN banking company, but has decreased somewhat in
 2019 at Bank BNI (Persero), Tbk. PT and Bank BRI (Persero) Tbk.PT. Be expected is that with the continuous and consistent improvement in financial performance, the financial health position of BUMN Banking (Persero) Tbk can immediately move to the "safe zone".
 
 Keywords: Financial Health of BUMN Banks, Altman Z-Score Model

Strategic Performance Measurement and Balanced Scorecard Approach in Egyptian Travel Agencies: A Proposed Empirical Model

Given the changing nature of the tourism industry, Egyptian travel agencies need to sophisticated performance measurement systems. The Balanced Scorecard (BSC) is a tool that helps organizations achieve excellence in their performance and improve their financial results. This paper contributes to a deep understanding of the BSC and its application in Egyptian travel agencies. The purpose of this paper is to clarify the importance of BSC perspectives for achieving the desired financial results. Furthermore, the research shows that social responsibility contributes to financial performance improvement and achieves customer satisfaction, reputation, and competitive advantage. Three hundred questionnaire forms were collected from travel agencies managers. Besides, ten interviews were conducted with tourism experts to provide a deep understanding of the BSC perspectives application. The Statistical Package for Social Sciences (SPSS) version 26 was used for analyzing data. The final results reported that the BSC and its perspectives are applicable inEgyptian travel agenciesunknowingly. There is the direct and indirect causal effect of the learning and innovation perspective, internal processes perspective, social responsibility perspective, and customer perspective on the financial perspective. Finally, the research proposed a new model for adopting the BSC as a tool for Strategic Performance Measurement (SPM). The paper recommends that Egyptian travel agencies need to establish a dedicated team to assess the importance and benefits of adopting the BSC model. Moreovere, it needs to integrate the social responsibility perspective with other BSC perspectives for achieving the customer's satisfaction, the quality, and the competitive advantage.

THE EFFECT OF LIQUIDITY, NET INTEREST MARGIN AND GOOD CORPORATE GOVERNANCE RISK ON SHARIA BANKING FINANCIAL PERFORMANCE

This research is categorized as quantitative research. While the research design used in this research is correlation analysis, which is a type of research carried out with the aim of detecting the extent to which variations in a factor are correlated with one or more other factors based on the correlation coefficient. The research objective is to explain the effect and hypothesis testing by analyzing various data in the field. In the context of this research is to obtain facts from existing phenomena and to seek factual information about the improvement of Islamic banking financial performance. The population in this study were 11 Islamic banks in Indonesia with a 3-year observation period 2018-2020. The technique for determining the number of samples used was the saturated sample method in which the number of sample observations was 33 observation data. Data collection methods used in this study are primary data and secondary data. The results showed that Liquidity Risk has a positive and significant effect on Islamic Banking Financial Performance. Net Interest Margin has a positive and significant effect on Islamic Banking Financial Performance, Good Corporate Governance has no and significant effect on Islamic Banking Financial Performance and simultaneously Liquidity Risk, Net Interest Margin and Good Corporate Governance have a positive and significant effect on Islamic Banking Financial Performance. 
 
 JEL: G30; G10; G24
 
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Company financial performance improvement through financial literacy and intellectual capital perspective

CV. Sarindofood is one of the companies engaged in manufacturing snacks, one of which is a type of Tost and Stick products made from raw materials for industrial corn. CV. Sarindofood uses considerable capital resources, so it needs analysis, especially in the financial sector. This study aims to determine the effect of intellectual capital on corporate financial performance, financial literacy as an understanding of finance. The independent variables used in this study are human capital, structural capital, value-added capital employed, intellectual capital (VAIC). In contrast, the dependent variables include the performance of ROA, ROI, and ROE. The data in this study are the company's financial statement data CV. Sarindofood consists of a balance sheet report and cash flow for five years from 2019 to 2018. The method used in this study uses Multiple Linear Regression, VAIC, and partial t-test, and a simultaneous F-test is used as analysis tools to see each variable's effect. The results of this study indicate that Capital Employee partially has a significant impact on financial performance. Human capital partly has a significant and positive impact on financial performance. Structural capital partially has a significant and positive effect on financial performance. Whereas the value of the results simultaneously shows that the influence of Intellectual Capital on ROA has a significant effect of 60%, Intellectual Capital on RO1 has a significant effect of 69%, and Intellectual Capital on ROE has a significant effect of 55%.

Innovation and financial performance: An assessment of patenting strategies of Chinese listed firms

AbstractWe examine the impacts of explorative and collaborative innovations on financial performance within the potential‐outcome framework using the patent information of 1716 Chinese listed firms over 2009–2017. By identifying the firms' patenting strategies on the basis of their positioning in the matrix of exploitative‐explorative by solitary‐collaborative dichotomies, as opposed to the separate dichotomies used in the existing studies, we obtain evidence for the impacts that are new to the literature. Firstly, the relationships between the shares of explorative and collaborative innovations and the performance are at most U shaped and only observed in firms pursuing some specific patenting strategies. Furthermore, the thresholds that permit these firms to benefit from the improvement of financial performance through increasing the shares of explorative and collaborative innovations are at least as high as 63%. Secondly, the patenting strategies in the extremes of the exploitative‐explorative and solitary‐collaborative dichotomies, such as the solitarily exploitative patenting and the collaboratively explorative patenting, have a greater value‐enhancing potential than those falling between the extremes of the dichotomies, failing to support the proposition that firms adopting an innovation strategy balancing between exploitation and exploration have better financial performance in the long run.

Kinerja Keuangan dan Efisiensi Operasional Perusahaan Proper Peringkat Lebih dari Taat dalam Pengelolaan Lingkungan Hidup

The object of this study is the financial performance and operational efficiency of the PROPER company with data one year before and after achieving a rating that is more than obedient or achieving a green or gold rating. The analysis technique used was the T-Paired test to determine differences in average financial performance, and operational efficiency before and after achieving the Green Proper rank. The results of the research show that companies that have received the Green Proper rank, which have a high commitment to obedience and care for environmental management, there is no difference in the improvement of financial performance seen from ROS, ROA and ROE. The Green Proper company has not been able to improve its operational efficiency through the Net Income Efficiency (NIEFF), which is the contribution per worker to the company's profit. The Sales Efficiency (SALEFF) shows insignificant results.
 Keywords: Financial Performance; Operational Efficiency.

Board Gender Diversity and Performance of Listed Deposit Banks in Nigeria

Gender diversity is becoming an issue for boards of companies, regulators, and investors worldwide. Nigeria is not an exception. It is assumed that board gender diversity significantly improves corporate governance and financial performance. Recently, women in both senate and House of representative met and agreed to pursue 35% appointment in public appointments. The women eventually sent a representation to discuss this with President Mohammadu Buhari. This study's main objective is to examine the relationship between gender diversity and quoted deposit money banks' performance in Nigeria using descriptive statistics, trend, and correlation analysis. Data was collected through the websites of 13 publicly quoted banks on the Nigerian stock exchange. Gender of directors was sieved by using the biography section of Annual report, use of gender-specific pronouns 'she,' the third is the usage of address 'Mr' and 'Mrs' while the use of the first name was also used to determine the Gender. Data were analysed by using SPSS. Trend analysis of each bank's percentage of female board members between 2015 and 2019 shows an unstable trend. The rate at which the female Gender occupies the Board in the banks does not appear to have a specific pattern to make inferences. It also lacks a strong relationship between the number of female board members and banks' performance. There is a weak negative relationship between earnings per share and female board members' percentage. It can be concluded that the inclusion of women on the Board of a company does not necessarily translate into an improvement in a company's financial performance.

Carbon Emission Disclosure, Good Corporate Governance, Financial Performance, and Firm Value

This research aims to examine (1) the effect of carbon emission disclosure on firm value, (2) the effect of good corporate governance on firm value, (3) the mediating role of financial performance between carbon emission disclosure and firm value, and (4) the mediating role of financial performance between good corporate governance and firm value. The research sample includes 43 mining, agro, and manufacturing firms listed in the Indonesian Stock Exchange over the 2015-2017 period. Carbon emission disclosure is measured by an indicator of the Global Reporting Initiative Series of Environmental Aspect. Good corporate governance is measured by the corporate governance score of shareholder rights, boards of directors, outside directors, audit committee and internal auditor, and disclosure to investors. Financial performance is measured by return on assets, while firm value is measured by Tobin's Q. Data analysis uses the structural equation modeling. The result shows carbon emission disclosure and good corporate governance have no direct effect on firm value. On the other hand, financial performance mediates the effect of carbon emission disclosure and good corporate governance on firm value. It shows that higher carbon emission disclosure and good corporate governance are meaningless for the investor if they do not give any financial performance improvement.

Diagnostics of Operational Performance of the SLTB: Causal Factors and Insights for Further Improvement

Sri Lanka Transport Board (SLTB), the State-owned public bus transport provider in Sri Lanka has recorded improved financial performance during the post-2015 period, and earned net financial surplus in 2017, a rare occurrence for the persistently loss-making state-owned enterprise. This apparent performance turn-around was the seed for the present study which attempted to identify causal factors behind this improvement, its sustainability, and to assess the scope for further improvement. The study used data in the published Reports of SLTB (2009-2017) and deployed analytical techniques such as descriptive statistics and regression analysis. Results revealed that the perceived performance improvement has been driven mainly by augmented revenues earned through increased average fare per kilometre and by the reduced fixed costs owing to the implementation of a Volunteer Retirement Scheme (VRS), both are attributable to government policy initiatives more than to any managerial decisions or operational improvements. The fuel cost management, and maintaining load factors over the years, have not been satisfactory, questioning the sustainability of the reported financial performance improvement. The outcome of the study thus calls for closer attention on improving technical and operational aspects of the SLTB.

Transforming data into insight: Establishment of a pharmacy analytics and outcomes team.

The importance of a data management strategy is increasingly necessary for demonstrating value and driving performance within pharmacy departments. Data analytics capabilities often do not match the pace of data accumulation. At our organization, the establishment of an embedded pharmacy analytics and outcomes (PAO) team has been instrumental to pharmacy services in generating and demonstrating value and proactively supporting a business intelligence strategy grounded in a data-driven culture. The PAO team was established to support the operational and strategic needs of clinical, financial, and operational pharmacy services. The team is charged with implementing the vision of extending medication-use influence and data insight to drive value-based patient care outcomes while decreasing waste, optimizing therapeutic decisions, and achieving medication management standardization across the continuum of healthcare. The PAO team is composed of 3 pharmacist full-time equivalents (FTEs), 5 business analyst FTEs, 1 biostatistician FTE, 0.2 pharmacy intern FTE, and 1 pharmacy manager FTE. Pharmacy services leaders believe it is necessary to have a mix of both clinical and analytical skill sets, given the clinical nature of the data managed by team and complexities of the medication-use process. Pharmacy reporting and analytics should require the same depth of scrutiny and overview as any other step in the medication-use process where pharmacists are held accountable. For our organization, it was critical to establish pharmacist-level oversight into every portion of the analytics process where medication data are involved. This structure has led to measurable improvements in patient outcomes, operational efficiency, and financial performance.

Determinants of Companies’ Financial Performance Following M&A Transactions in Poland

Purpose: This study identifies and analyzes the factors that impact the financial performance of companies after a merger and acquisition transaction. Methodology: As many as 130 Polish market observations were analyzed with an OLS regression model to verify the research hypotheses. Results: The results reveal that the company’s size, performance before the transaction, and its international nature translated into improvement of post-transaction financial performance. Moreover, industry diversification transactions and CEO changes in acquiring a company had a negative impact on the company’s financial performance after the transaction. Originality: This investigation is the first study devoted to the Polish market in the research field of M&A determinants with the use of such a large sample.

Performance of the Polish Insurance Sector in the Second Decade of the 21st Century

The study analyzes the performance of the Polish insurance sector between 2010 and 2019. The analysis was based on source materials from the Statistical Yearbook published by Statistics Poland (GUS), reports of the Polish Financial Supervision Authority (KNF) and the Polish Chamber of Insurance (PIU). The main indicators describing the performance of the insurance market, including its concentration, number of policies, market structure, competitiveness, consumer behavior, and the financial performance of insurance companies were identified and analyzed.
 The strengths and weaknesses of the Polish private insurance market in the last ten years were determined. The main weakness was a considerable decrease in the sale of life insurance (branch I) policies, which was manifested by a steady decrease in gross premium, a continued decline in insurance density and penetration rate, deteriorating financial performance, and a decrease in the number of branch I insurance companies. Considerably better results were reported in the non-life insurance segment (branch II), where gross earned premium continued to improve and increased by around 64% over the analyzed decade. The non-life sector was also characterized by a steady improvement in density (increase of PLN 436), penetration rate (increase of 0.07%) and financial performance (net technical result increased by PLN 4.2 billion, net profit increased by PLN 1.5 billion).

Методы оценки экономической эффективности НИОКР и особенности их применения

Valuation of research and development projects (R&D) is crucial for technological development, financial and operational performance improvement of companies. However, R&D valuation methods are not fully and in detail disclosed in publications, a single concept for assessing the effectiveness of R&D has not yet been developed. The cause of this scientific and practical problem is that scientific developments are carried out in conditions of increased risk and uncertainty, often aimed at solving strategic, long-term tasks, which does not allow at the initial stage to reliably evaluate their final effect of innovations. The object of research in the article are methods for assessing the economic efficiency of R&D. The aim of the article is to formulate an approach to R&D valuation method selection based on applicability criteria developed by the authors. In the course of the study, a review of existing methods for assessing effectiveness was conducted, their advantages and disadvantages were identified, and the feasibility of using a specific assessment method based on the specifics of scientific development was analyzed. There were considered R&D economic efficiency valuation models (discounted cash flows, Monte-Carlo simulations, real option valuation, decision tree analysis, relief from royalty method) as well as methods for determining discount rates used in these methods. When applying various valuation methods, the discount rate may vary due to differences in risk accounting approaches. There were also considered examples of alternative methods for R&D efficiency valuation such as grading system and integral efficiency index. The theoretical result is a review of R&D valuation methods and generalization of the information. The practical result of the work is the description of approach for selection of optimal R&D economic efficiency valuation method and possible implementation of the described approach in practice.