Financial Performance Of Companies Research Articles

Impact of Corporate Social Responsibility and Profitability in Financial Performance Moderated by Amanah Concept

Purpose – This study aims to fill a gap in the literature by examining the impact of CSR, measured through Zakat, and the effect of profitability on the financial performance of companies in Saudi Arabia, as well as the role of the concept of Amanah as a moderating variable. Methodology/approach – This study employs a quantitative method using secondary data from financial reports of banks listed on Tadawul from 2019 to 2023. The sample was selected based on the consistency of reports and the absence of losses in the last three years. Data analysis was conducted through multiple linear regression with panel data using Eviews version 11. Findings – The research findings indicate that CSR and the concept of Amanah have a significant impact on the financial performance of Islamic banks, whereas profitability does not have a significant effect. The concept of Amanah also acts as a moderating variable that strengthens the influence of CSR and profitability on financial performance. Novelty/value – This study makes a significant contribution by demonstrating that the concept of Amanah plays a key role in enhancing the financial performance of Islamic banks, alongside CSR. The findings support the Sharia Enterprise theory and introduce a new approach to measuring the performance of Islamic banks by placing greater emphasis on the concept of Amanah.

Does Dividend Payment Generate a Market Signal to Investors?

In perfect market theory, the information will provide signals that are reflected in stock price movements. In the context of dividend payments, these theories are still debatable. Dividend payments will please shareholders as prosperity increases. But not sharing profits can also give a positive signal. The purpose of this study is to see if dividend payment able to give a positive signal on rising stock prices. The research will also look at whether profitability, leverage, asset growth, and interest rates also signal rising stock prices. Logistic regression analysis is applied to answer the research objectives. Purposive sampling is based on retail companies that specialize in the category of supermarkets and minimarkets that have been listed on the Indonesia Stock Exchange for the period 2013 to 2022. The results of this research conclude that dividend payments give a positive signal on rising stock prices. The chance of a stock price increase is 4.7 times compared to a company that does not pay dividends. Interest rates also inform investors to be careful in making investment decisions. Investors are only willing to bear additional risk if the expected profit is above the risk premium. Information on the company's financial performance such as profitability, leverage, and asset growth is not significant on the increase in stock price. This means that it does not provide signals for investors.

Did Australia's brief period of carbon pricing impact corporate environmental, financial or social performance?

This study utilizes transaction cost and legitimacy theories to examine whether a carbon tax affects listed companies' environmental, financial and social performance within the context of Australia's National Greenhouse Energy Reporting (NGER) Act. We use a base sample of 346 listed company-year observations for 2012–2017 and employ the System Generalized Method of Moments (GMM) to deal with bias arising from endogenous explanatory variables in our analysis. We find that the short period of implementation of a carbon tax in Australia was not successful in improving the carbon emissions of the high polluters subject to the tax in our sample. High polluters subject to the tax experienced a positive impact on financial performance and social performance. However, many entities beyond listed companies were subject to the tax, and the period of the tax saw a reduction in total emissions. We conjecture that industry assistance and free carbon credits granted to companies explain these results.

Analysis of the Influence of Legal Policy on the Financial Performance of Companies in the Manufacturing Sector: Case Study Using the Anova Method

This study aims to evaluate the effect of legal policy implementation on the financial performance of companies in the manufacturing sector using a quantitative research design with case studies. The population in this study are manufacturing companies in Indonesia. Sample selection using purposive sampling. The data used are primary data and secondary data by distributing questionnaires using the ANOVA test. The results showed a significant difference in the company's financial performance between the period before and after the implementation of the legal policy, with a p-value of 0.032 (p<0.05). This shows that legal policy has a real impact on the financial performance of companies in the manufacturing sector so that a stable legal framework is needed to encourage optimal financial performance.

Determinans Sustainability Report, Leverage and Tax Avoidance on Financial Performance with CEO Narcissism as Moderation Variable

Financial performance analysis is the process of critically reviewing finances which involves reviewing data, calculating, measuring and providing financial solutions. Sustainability reports, leverage, tax avoidance and CEO marcissism are among the factors that influence a company's financial performance. This study examines the impact of tax avoidance, leverage, and sustainability reports on financial performance using CEO narcissism as a moderating factor. With a population of 89 companies in the metals and minerals industry, the subjects of this study are manufacturing companies listed on the Indonesia Stock Exchange. Secondary data sources and quantitative techniques are used in this research methodology. Using SmartPLS version 3, the Partial Least Squares (PLS) approach was used in the data processing procedure. The results show that although the tax avoidance variable has no influence and the CEO narcissism variable cannot mitigate the relationship between tax avoidance and financial success, the sustainability report and leverage variables have a great influence on financial performance. This research is aimed at companies operating in the metal and mineral manufacturing industry to reveal the environmental, social and economic role of society as well as the attractiveness of external parties, namely investors.

A Bibliometric Analysis: The Influence of Service Profit Chain (SPC) on the Hospitality Industry

In the hospitality industry, the service-profit chain establishes relationships between profitability, customer loyalty, employee satisfaction, loyalty, and productivity. It shows that focusing on employee engagement and customer satisfaction might boost a company's financial performance. This relates to how well the company supports and assists its employees. Several studies have empirically investigated the relationship between practices in the service profit chain and their impact on the tourism and hospitality industries. The service profit chain is based on the premise that market leadership requires an emphasis on managing value drivers that are the most important determinants of success: employee retention, employee satisfaction, and employee productivity, which have the greatest impact on success and provide the most benefit to customers. Bibliometric studies that organize production in this field, however, are still scarce. The study's goal is to analyze the influence of service profit chain practices in hospitality industry using VOSviewer software that is related to marketing. This will be achieved by analyzing articles published on the SCOPUS platform to determine state-of-the-art trends and other relevant indicators. Researcher obtained a sample of 57 materials for analysis. The author processed the data and used the VOSviewer software to graphically illustrate the results. The study examines country-wise productivity, most productive source titles, most-cited sources on the topic, top-most keyword occurrences, and yearly productivity research output trends in this area. The study findings indicate that the United States, China, Australia, Germany, India, Egypt, Malaysia, and Brazil are the most productive countries in the field of research output on the topic. The investigation also reveals that the top-most source title on the topic is “International Journal of Contemporary Hospitality Management,” and frequently used keywords are "articles,” “customer satisfaction,” and “service profit chain." On this topic, the USA is the leading country. However, research on the service profit chain and hospitality in Asia has shown that South Korea and China are the most successful countries in this field. Only the SCOPUS database contains the study's findings. The study's findings are useful for academicians, researchers, and policymakers looking for answers to the topic.

How does adopting sustainable supply chain quality management improve corporate financial performance? A transaction cost perspective

This article examines the impact of adopting SSCQM on the financial performance of companies, based on transaction theory. The main objective of this study is to assess how reducing transactional costs through SSCQM, or within its framework, can improve the financial performance of Moroccan companies. The methodology is based on quantitative analysis, using an econometric model (GLM-Gamma) to test the association between SSCQM adoption and financial performance. The results of the study show that various SSCQM-related practices positively affect companies’ financial performance. Managing sourcing costs significantly improves profit margins. Contracts focusing on quality and sustainability, and minimizing the risk of non-compliance, also boost financial performance. However, the ability to adapt and respond to regulatory changes shows no significant impact. Optimizing production processes and investing in green technologies are proving to be profitable strategies, with significant improvements in financial performance. Customer engagement and transparency and traceability of operations also have a positive impact. These results suggest that SSCQM practices, such as the adoption of green technologies and transparency policies, are beneficial for companies’ financial performance. The originality of the study lies in its approach, which links transaction theory to sustainable supply chain management, an angle little explored in existing literature. The study confirms that SSCQM is an effective strategy for improving corporate financial health by minimizing transactional costs. It recommends integrating SSCQM into companies’ management strategies to boost their competitiveness, financial performance and sustainability.

Analysis of Financial Performance Before and After Going Public (Case Study of Companies Listed in 2020 on the Indonesian Stock Exchange)

This study aims to test and analyze the company's financial performance in terms of liquidity, activity, profitability and solvency aspects before and after going public and being listed on the IDX. A population of 51 companies listed on the IDX in 2020, a total of 22 companies were used as samples in this study. The sampling technique used is the purposive sampling method. The data used in this research was obtained from visits to www.idx.co.id and the company's main website. The collected data was then run using the SPSS version 26 program. The research found that the current ratio and net profit margin, two measures of a company's financial health, changed significantly between the pre-IPO and post-IPO periods. Financial metrics such as total asset turnover and debt-to-equity ratio did not change between the pre- and post-IPO periods for the company.

Sustainable Marketing: Integrating Green Marketing Practices into Marketing Strategy

This study aims to explore the impact of Green Marketing practices on the financial performance of companies in Indonesia, focusing on variables such as Environmental Practices, Consumer Knowledge, and Company Commitment. The research method used involves quantitative analysis by collecting data through questionnaires distributed to managers and staff in the banking sector. The data obtained were then analyzed using descriptive and inferential statistical techniques, including validity, reliability, and direct effect hypothesis testing. The results of the study indicate that Company Commitment has the most significant influence on Financial Impact, followed by Environmental Practices. Although Consumer Knowledge does not show a significant direct effect, the application of digital technology and funding of green projects generally contribute positively to financial results. This study also identified that the integration of environmentally friendly practices can improve operational efficiency and brand reputation, as well as meet the demands of consumers who are increasingly concerned about environmental issues. These findings provide strategic guidance for companies to optimize sustainable marketing practices and achieve long-term benefits.

Pengaruh Green Accounting, Intellectual Capital terhadap Kinerja Keuangan Perusahaan Sektor Kesehatan di Indonesia

This study's primary goal is to examine how intellectual capital and green accounting affect the financial performance of health sector businesses. The value added intellectual coefficient (VAIC) is used to quantify intellectual capital, and environmental expenses and eco-friendly products are used to measure green accounting. The analyzed data consists of secondary data from the annual reports of healthcare companies listed on the Indonesia Stock Exchange (IDX) for the period from 2019 to 2022. Multiple linear regression method was employed in the data analysis. The study's conclusions suggest that while green products and environmental cost have no effect on a company's financial performance, intellectual capital has a favorable effect on the financial performance of businesses in the health sector. These results underscore the importance of effective management of intellectual capital to enhance financial success in the healthcare sector.

INDCOMP: A Shiny App for Open Data Repository of the Performance of an Indonesian Company Listed at the Indonesia Stock Exchange

Investors, practitioners, and stock researchers highly need data related to financial performance to predict a company's financial health condition, which is used as a basis to consider investing in it. The Indonesia Stock Exchange (IDX) website provides reports on the company's financial performance. Unfortunately, the company’s financial data found on the IDX website are in PDF format, and researchers must download them one by one, which takes a long time. This study presents a website-based application, named Indonesia Company Performance (INDCOMP), built using the R programming language and involving various R packages and frameworks to assist investors, practitioners, and stock researchers in studying the financial performance of companies. This application can help users quickly access the financial performance data of various companies, present financial performance data in data tables, and perform data visualizations as well as statistical analyses.

Improving Financial Performance through Financial Risk and Intellectual Capital

This research aims to analyze the influence of financial risk and intellectual capital on financial performance and the influence of financial risk and intellectual capital on financial performance. This research method is explanatory research and causality research design. The population in this research is all manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2021. The data analysis technique uses path analysis with two substructure equations and testing classical assumptions. This research method is descriptive analysis research. Research data uses secondary data obtained from information in the annual reports of each manufacturing company on the Indonesia Stock Exchange during the research period with data analysis techniques using path analysis. This research shows that financial risk significantly and negatively affects the company's financial performance. The use of capital originating from debt has a negative impact. The company experienced a reduction in its profit target because it had an obligation to pay interest on debt. The greater the use of leverage, the more significant the reduction in the rate of return on its capital. Intellectual capital significantly and positively affects a company's financial performance. Intellectual capital efficiency is substantially and positively related to a company's financial performance. In the future, it is hoped that the company's financial performance will be achieved through effective risk management policies and maximum utilization of intellectual capital, which will impact increasing company value.

Analysis of the Impact of the Implementation of PSAK 73 on Leases on Financial Performance in Transportation & Logistics sub-sector companies listed on the Indonesia Stock Exchange in 2020-2022 with DER as a Moderating Variable

Growing business and economic activities cause the level of industrial competition to be more competitive. This study aims to analyze the impact of the implementation of PSAK 73 on leases on the financial performance of companies in the transportation & logistics sub-sector listed on the Indonesia Stock Exchange during the period of 2017 - 2022. PSAK 73 was introduced as an accounting standard that regulates the recognition, measurement, and disclosure of rental transactions, which can affect a company's financial statements. The research used is quantitative with a descriptive analysis method by looking at the impact of the implementation of PSAK 73 on the financial performance of companies in the transportation & logistics sub-sector. The data used is sourced from the company's published financial statements listed on the Indonesia Stock Exchange. The results of this study are expected to provide a better understanding of the impact of the implementation of PSAK 73 on the financial performance of companies in the transportation & logistics sub-sector, as well as provide input for practitioners and regulators in facing the implementation of new accounting standards. The results of this study concluded that liability recognition has an effect on financial performance, asset recognition has no effect on financial performance, equity recognition has no effect on financial performance, debt to equity ratio strengthens liability recognition to financial performance, debt to equity ratio strengthens asset recognition Debt to Equity Ratio weakens Equity Recognition to Financial Performance.

Pengaruh Komite Audit, Biaya Lingkungan, Modal Intelektual, Likuiditas, dan Pertumbuhan Perusahaan terhadap Kinerja Keuangan Perusahaan

This study aims to determine the effect of audit committees, environmental costs, intellectual capital, liquidity and company growth on company financial performance in food and beverage sector companies listed on the Indonesia Stock Exchange for the 2019-2023 period totaling 126 companies. The data used in this study were obtained from financial report data and annual reports. The population in this study were food and beverage sector companies listed on the Indonesia Stock Exchange. The sampling technique used was the purposive sampling method and 160 sample data were obtained from 32 companies. The analysis technique used in this study is multiple linear regression analysis using IBM SPSS Statistics. The results of this study indicate that environmental costs and company growth have a positive and significant effect on the company's financial performance, while the audit committee, intellectual capital, liquidity do not affect the company's financial performance.

Materiality and stakeholder engagement in sustainability reporting: does it matter?

Materiality analysis and stakeholder engagement are crucial processes in sustainability reports which aim to identify material issues and prioritize them based on stakeholder interests. Subjectivity in the process of determining materiality and stakeholder engagement can affect the quality of sustainability reports because management can determine the information to be published and eliminate negative information related to sustainability. This research aims to investigate the influence of board of directors’ activity, presence of independence commissioners, company financial performance, and size on materiality disclosure and stakeholder engagement in mining companies in Indonesia. Content analysis and multiple regression analysis were carried out on 70 sustainability reports. The research results show that the involvement of the board of directors and the quantity of board members have a positive and significant effect, while the presence of independence commissioners and company size do not have a significant effect on materiality and stakeholder disclosure. It is noteworthy that disclosing materiality in sustainability reports is a crucial aspect of business practices, irrespective of the company’s financial status or size. This research contributes to the disclosure of materiality and stakeholder involvement in the reporting of companies operating in Indonesia from the perspective of stakeholder theory and legitimacy theory.

An Analysis of the Walt Disney Company (DIS) Financial Performance and Comparison with Competitors

The Walt Disney Company (DIS) is a giant in the entertainment industry with a diversified investment portfolio, including theme parks and streaming services such as Disney+. This article provides an in-depth analysis of DIS's liquidity, solvency, profitability, and valuation, and compares it with major competitors such as Sony, Comcast, and Netflix. DIS has demonstrated good liquidity and debt paying ability, thanks to diversified sources of income and prudent financial management. Compared to competitors such as Netflix, although its profitability indicators are robust, there is room for improvement. Valuation indicators indicate that, the pricing of DIS's stock price is relatively reasonable, but investors should be aware of the risk of overvaluation. DIS's strategies include expanding streaming services, maximizing theme park revenue, and embracing digital transformation. Although DIS offers the potential for stable growth, investors must be wary of industry disruption and constantly changing consumer preferences. In this rapidly developing entertainment industry, the position of DIS cannot be ignored, and investors also need to carefully weigh risk and return. This paper adopts fundamental analysis to inform investors insights of the risks and opportunities of DIS.

Characteristics of creative accounting: A Multifaceted Literature Analysis

Creative accounting has become a widespread practice in financial reporting. It involves manipulating financial data to paint a more positive picture of a company's financial performance or position. This paper aims to provide a comprehensive exploration of creative accounting. It will delve into its underlying factors, characteristics, different forms, and associated Implications. By reviewing existing literature, we will examine the complex relationship between creative accounting and factors such as ethics, quality of disclosure, internal control, and ownership structure. The discussion will shed light on the double-edged nature of creative accounting, acknowledging its potential for innovation in accounting practices while also recognizing its negative consequences for stakeholders when used unethically. Various forms of creative accounting, including earnings management, income smoothing, and big bath accounting, will be examined in detail, with a focus on their impact on financial reporting transparency and stakeholder perceptions. Additionally, this paper will discuss the precautions associated with creative accounting, emphasizing the need for careful consideration in financial decision-making and the importance of

PENGARUH PENGUNGKAPAN ENVIRONMENTAL COST DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP PROFITABILITAS PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI DASAR DAN KIMIA YANG TERDAFTAR PADA BURSA EFEK INDONESIA PERIODE TAHUN 2018-2022

This study aims to evaluate the impact of environmental cost disclosure and corporate social responsibility (CSR) on the profitability of manufacturing companies in the basic and chemical industries listed on the Indonesia Stock Exchange (IDX) during the period 2018-2022. Utilizing a quantitative approach with data analysis through Eviews software, the research explores the effects of these variables on company profitability. The findings reveal that environmental cost disclosure does not have a significant effect on company profitability. The level of environmental cost allocation does not influence market reactions or investor interest in the company. Conversely, CSR has a positive impact on profitability. CSR is seen as providing a positive signal to investors as it demonstrates the company’s responsibility towards its operational impacts. Simultaneously, the independent variables, namely environmental cost disclosure and CSR, significantly affect profitability, indicating that while environmental cost disclosure does not have a direct impact, CSR plays a crucial role in enhancing company profitability and attracting investor attention. This study aims to provide insights into how environmental cost disclosure and CSR affect company financial performance and how companies can leverage this information for strategic advantages in the capital market.

DETERMINANTS OF TAX AVOIDANCE IN LQ45 COMPANIES WITH COMPANY SIZE AS A MODERATION

This research investigates the determinants of tax avoidance with company size as a moderation. Regarding the increase in environmental social governance (ESG) investment since 2013 in Indonesia, this research uses eight LQ45 companies for 2013-2023. This research uses Moderated Regression Analysis. The results show that profitability, financial distress, and asset turnover significantly influence tax avoidance. In contrast, company size and ESG do not influence tax avoidance. Although company size can moderate profitability on tax avoidance, it cannot moderate financial distress, asset turnover, and ESG on tax avoidance. This research contributes to expanding understanding regarding tax avoidance through agency theory and legitimacy in providing academic literature. This research implies that a company's financial performance can reduce tax avoidance efforts in line with fulfilling stakeholder (principal) expectations regarding increasing profits.

Board gender diversity in innovative SMEs: an investigation across industrial sectors

PurposeInvestigating the drivers that contribute to the success of small and medium-sized enterprises (SMEs) is crucial for ensuring the overall growth and sustainability of a country. The purpose of this research is to investigate the role of gender diversity on the Board of Directors of innovative SMEs to understand whether the presence of women on boards can improve the performance of such organizations devoted to introducing technological advancements in the product market.Design/methodology/approachThe study adopts a quantitative approach, using a sample of 2,264 Italian innovative SMEs. These companies were selected from non-financial sectors and collected from Analisi informatizzata delle Aziende Italiane (AIDA), a database provided by Bureau van Dijk. An unbalanced panel data involving a period from 2016 to 2021 was used with a total of 12,173 observations.FindingsOur findings suggest that female representation has a negative effect on a company's financial performance. Moreover, the moderation effect of sector growth opportunities confirms this negative influence since in sectors characterized by high growth opportunities, the presence of women on boards was found to have a negative outcome.Originality/valueThe main contribution of the work lies in offering a comprehensive and thorough examination of the business category of innovative SMEs. Specifically, it extends previous research through a focus on board gender diversity of innovative SMEs by examining the impact of the presence of women in their boardrooms on firm performance outcomes. Furthermore, it provides an analysis of this effect, considering both high-growth and low-growth sectors.