Financial Corporate Performance Research Articles

The impact of environmental protection tax on corporate performance: A new insight from multi angles analysis

This study investigates the practical effects of adopting the environmental protection tax (EPT) policy on corporate performance in China. The analysis uses the Difference in Differences (DID) approach based on a quasi-natural experiment scenario. The findings indicate there is a negative impact of implementing the EPT policy on the financial performance of corporations, and the conclusion remains unchanged despite exhaustive robustness testing. The negative impact can be partly attributed to corporate technology innovation inputs. Meanwhile, enterprise property rights, pollution, and technical levels also substantially influence the implementation effect of the legislation. However, implementing this policy has improved corporations’ environmental performance and established its efficacy in enhancing their sustainable capabilities. This study comprehensively explores the impact of environmental control legislation on business performance, spanning financial, environmental, and social dimensions. Corresponding findings offer valuable insights into how firms react to environmental legislation and adjust to the external environment. Meanwhile, it also provides an objective reference for the comprehensive green transformation.

Influence of Green Accounting, Environmental Performance, And Share Ownership on Corporate Financial Performance with Corporate Social Responsibility as An Intervening Variable in Basic Industrial and Chemical Sector Companies Listed on the IDX, 2018 – 2022

This study aimed to examine and evaluate the impact of Green Accounting, Financial Performance, and Stock Ownership on Corporate Financial Performance (CFP) in the primary and chemical industry sectors of companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. This research also aimed to investigate the role of Corporate Social Responsibility (CSR) as an intervening variable in this relationship. The sample for this study comprised 80 companies operating in the primary and chemical industrial sectors listed on the BEI. The utilization of purposive sampling methodology chose the sample, and the analysis of the data was conducted using Eviews 9 software and Sobel calculations. This study's findings suggest that no statistically significant relationship exists between Green Accounting, Environmental Performance, Stock Ownership, and Corporate Financial Performance. The variable of interest, Corporate Social Responsibility (CSR), exerts a notable influence on the financial performance of corporations. Green Accounting and Environmental Performance variables exhibit a notable influence on Corporate Social Responsibility. However, the variable of Stock Ownership does not demonstrate a substantial impact on Corporate Social Responsibility. In addition, it can be observed that the variables of Green Accounting, Environmental Performance, and Stock Ownership do not exert independent influence on Corporate Financial Performance when mediated by Corporate Social Responsibility.

Pengaruh Environmental Performance dan Corporate Social Responsibility Disclosure Terhadap Kinerja Keuangan Pada Perusahaan Kosmetik di BEI

The purpose of this research is to test and analyze empirically influence environmental performance against the financial performance of cosmetics companies in indonesia and the influence of corporate social responsibility disclosure of financial performance cosmetics companies in Indonesia. This research use a quantitative approach. A subject in this research was cosmetics companies listed on the indonesia stock exchange period 2011-2018. Data presented in the form of descriptive statistics and produce 6 company and 36 samples. Research carried out by using multiple linear regression analysis environmental performance has a positive influence on the financial performance of corporations and CSR disclosure have a positive influence on financial performance shows that CSR is a form of transparent form of behavior and ethical was an image of corporate sustainbility .CSR can be used as a company to keep the company going concern sustainability in future.

Exploring the impact of cash flow, company size, and debt on financial performance in corporations

This paper investigates the impact of operating cash flows, company size, and debt (including both cash and operating flows) on the financial performance of Kosovo’s ten most prominent publicly traded companies. Various analytical techniques were employed for hypothesis testing, including OLS linear regression analysis, correlation analysis between variables, and statistical tests such as the T-test and Ratio test. The financial performance analysis involves utilizing Return on Assets (ROA) as the dependent variable, while the independent variables encompass operating cash flows (CFO), firm size, and financial leverage.The study’s findings reveal noteworthy insights. Although cash flow (p > 0.05) is not observed to have a significant impact, larger company size (p < 0.01) is associated with diminished financial performance. Conversely, higher debt leverage (p < 0.01) is linked to enhanced financial performance. Consequently, the results underscore the significant economic implications that firm size and financial leverage hold for the financial performance of corporations in Kosovo, as indicated by ROA.The observation that firms size plays a substantial role in financial performance aligns cohesively with established economic theory. As companies expand, they often encounter challenges related to efficient resource management.

Fintech and financial sector performance in Saudi Arabia: An empirical study

Globally, the Fintech industry has grown in importance as a means of staying ahead of changes in the financial sector. This study aims to assess the influence of Fintech on Saudi Arabia’s finan-cial corporate performance. The sample of the study is the financial service industry comprising banks and insurance companies. Data are gathered from the annual reports and DataStream for the years from 2014 to 2021. Banks and insurance companies make up the bulk of the financial ser-vices industry, which serves as a good representative sample. The associations between the in-dependent and dependent variables in five models are examined using ordinary least squares (OLS) and feasible generalized least squares (FGLS) regressions. The results reveal that Fintech has a positive impact on corporate performance. The results of additional tests are consistent with the main findings. We contributed to the literature and associated theories by shedding light on the impact of fintech on the financial sector. The findings have ramifications for a wide range of parties. Researchers can utilize the study and findings to learn more about Fintech in the context of Saudi Arabia, which stands for the Gulf region and the Arab World.

РАСКРЫТИЕ НЕФИНАНСОВОЙ ИНФОРМАЦИИ КОМПАНИЯМИ КАК ДЕЙСТВЕННЫЙ ИНСТРУМЕНТ КОРПОРАТИВНОГО УПРАВЛЕНИЯ

The sole purpose of a for-profit company is to maximize profits for shareholders. Because of this approach, the focus is on the sole financial performance of corporations, and for many years that was basically the only thing corporations had to report on, which was enshrined in statutory provisions requiring the preparation and publication of comprehensive annual financial reports and consolidated financial statements. Companies disclose information to a wide range of stakeholders, and for many of them, non-financial information is of greater interest than financial information. The article analyzes the role of non-financial information disclosure in improving the quality of corporate governance and reporting.

IMPACT OF DIVIDEND POLICY ON SHAREHOLDER’S WEALTH IN POWER GENERATION AND DISTRIBUTION FIRMS IN PAKISTAN

This article investigates the effect of dividend policy on shareholder wealth inside the energy generation and distribution corporations in Pakistan. The examination is carried out using a pattern of 12 organizations listed on the Pakistan Stock Exchange in the course of 2013-2017. The research employs both descriptive information and panel facts regression analysis to examine the relationship between dividend policy and shareholder wealth. The results endorse that dividend policy has a substantial effect on shareholder wealth in the strong technology and distribution companies in Pakistan. The findings reveal that corporations with an excessive dividend payout ratio generate better returns for their shareholders. Furthermore, the studies additionally examine the impact of other firm-particular elements, along with company size, income consistent with percentage, and rate-to-profits ratio, on shareholder wealth. The outcomes propose that those factors also have a widespread superb effect on shareholder wealth. The study has crucial implications for each investor and companies within the electricity technology and distribution area in Pakistan. The findings recommend that firms ought to adopt a dividend policy that maximizes shareholder wealth. This may be accomplished by way of preserving a high dividend payout ratio and making sure that the company-particular elements that impact shareholder wealth also are well-managed. The research also highlights the significance of understanding the specific characteristics of the power generation and distribution zone in Pakistan while developing a dividend policy. This region is noticeably regulated and challenges government rules, which may impact the financial performance of corporations in this sector. Therefore, firms running on this zone should carefully bear in mind the impact of regulatory and policy adjustments when developing their dividend policy.

Does the Covid-19 pandemic affect the financial performance of corporations? Empirical evidence from Indonesia

The purpose of this study is to empirically analyze the performance of liquidity, leverage, profitability, and activities of firms on the Indonesia Stock Exchange during the Covid-19 pandemic based on a quantitative approach. This study uses secondary data from financial reports of firms listed on the Indonesia Stock Exchange that are included in the LQ45 index, which represents the movement of the capital market based on specific criteria. The results reveal that the Covid-19 pandemic has hurt the Indonesian firm’s financial performance. The worst condition has increased the leverage ratio, and the profitability and activity ratio declined, as experienced in several emerging countries. The findings of this research can be a bunch of information for investors in making decisions that these financial ratios are sensitive to economic volatility. In addition, this finding also adds insight to the company's management, especially LQ45 companies, that the company is expected to be able to maintain its financial fundamentals of these ratios. Further research needs to be carried out on how the effects of the Covid-19 pandemic influence financial performance according to the sector type of the firm and conducted in more time series periods.

Innovation Strategies and Corporate Performance: Perspective from India

More studies indicate that businesses becomes very competitive in an emerging market when they give importance to innovative activities that build their reputation in the market environment. Essentially, the key reason for innovativeness is the desire of firms to obtain increased business corporate performance and increased competitive edge and the ultimate goal of innovation is to improve business corporate performance. Innovation strategies are critical for firms that are in pursuit of improved corporate performance and their reward is often an increase in their profits and their market share. Process of strategic innovation is strongly associated with organizational learning and refers to ability of organization to generate, accept and implement new ideas, processes, products or services. The primary goal of process innovation is to generate a notable increase in corporate performance or to drive down costs significantly. This approach can help organizations achieve major reductions in process cost, improvements in quality, service levels and other business objectives. Strategic innovation is contributor to creation of new markets and products for the market, however even after the benefits of strategic innovation has been established the impact of strategic innovation on corporate performance of Businesses has remained misunderstood. The study adopted the use of mixed method approach research design which is the application of both qualitative and quantitative approaches. The study used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. Result findings from literature-based review indicated that innovation had positive and significant influence on the corporate performance of businesses. It was recommended that innovation information should be available particularly to regulatory and advisory bodies for guidance to the Businesses on the need to craft and employ sound strategies geared towards continuously embracing innovativeness since innovation leads to improved financial corporate performance. Keywords: Sustaining innovation, Incremental innovation, Radical innovation, Process innovation, corporate performance

Customer Perception and Its Influence on the Financial Performance in the Ecuadorian Banking Environment

This study examines the relationship between customer perception and financial corporate performance in the Ecuadorian banking environment. A self-designed online questionnaire was carried out to gather information regarding customer perception factors (tangibility, trust and service guarantee, empathy, customer satisfaction, and customer loyalty), while the financial data of the Ecuadorian banks were attained from their annual financial indicator reports (financial efficiency and liquidity). A total of 243 questionnaires were recollected and 219 were considered as the final valid data. SPSS 26 was utilized for data analyses. Structural equation modeling was used to test the hypotheses. Our findings revealed that customer perception has a positive and significant (at least at the 5% level) impact on the financial performance of banks. Similarly, customer loyalty is influenced by tangibility, trust and service guarantee, empathy, and customer satisfaction. Study results are mostly consistent with the banking environment of other countries, especially Nigeria, and Scandinavian nations. Bank managers might always prioritize the customer perception of the bank due to it being considered a strong predictor of the bank’s financial performance. This study provides a complete statistical and econometrical model with tangible and intangible factors of customer perception (qualitative variables) and it includes financial records (quantitative variables). The main limitation of our study is the calculation of the customer perception index because Ecuadorian institutions do not calculate it and thus, we estimate the index in our model. For future research, the suggestion is that a corporate governance index with a customer perception component is included to improve the model.

Effect of Corporate Governance Policies in Financial Performance of Corporations in Developing Economies

The present study look upon the topic related to the importance of corporate governance rules in the corporations to improve the financial performance in the developing countries. The study carefully incorporates the importance of corporate governance in the organizational settings, by analysing diffrent factors. Background justifies the relevance of the study how the developing economy started to understand the importance of corporate governance. Aim and objectives have been carefully identified and mentioned. The research methods regarding research design, research types have been mentioned, here secondary data collection methods are being taken into the study. The study discussed the results in collective manners as possible to understand the impacts of corporate governance in the organizational settings. In this part themes have been taken into consideration to elaborately describe the related things and matters elaborately. The developing countries conditions in terms of corporate governance are being compared with developed countries also. In the present time the industries reading through some changes, hence the organizations need to follow the trends accordingly. Issues also are being identified to make certain strategies to mitigate it .In the discussion part the results are being discussed in proper way to understand the underneath meaning of study. Conclusion has been done accordingly to define the whole study bad the results. Keywords : Corporate governance, developing countries, financial performance, organizations

ESG impact on financial corporate performance and portfolio returns: evidence of Australia and Japan

Environmental, Social, and Governance investing has undergone a radical shift; companies and investors have focused on the impact of the disclosure of the practices and policies related to the environment, social responsibility, and governance in their operational strategies and investment. The purpose of this paper is to demonstrate the impact that the ESG policies have on public companies' stock returns in Australia and Japan. Accounting and market-based measures are used to determine the impact ESG practices have on stock market index returns. The annual data used is of companies from Australia's S&P/ASX Index and Japan's Nikkei 225 Index, covering the period from 2005 to 2019. Fixed effect model regression was used to test the significant relationship between companies' stock returns and ESG score, accounting, and market-based measures. Portfolios were created to analyze the risk/return relationship between companies with and without ESG across countries. The findings indicate mixed results. Australia´s non-ESG portfolios outperform the S&P500 and ESG portfolios. Japan´s portfolio has positive returns but underperforms the benchmark. Low market capitalization portfolios with and without ESG outperform the higher capitalization portfolios.

Проблемы и перспективы развития стратегического планирования корпораций в цифровом технологическом укладе

Objectives. 
 A set of theoretical, methodological and practical approaches to the development of strategic planning of corporate activities in the transition to a digital technological system.
 Methods. 
 The application of a comprehensive scientific approach is based on a combination of General scientific and special research methods: retrospective, system analysis and synthesis, comparison and generalization, and evolutionary.
 Results. 
 As the analysis of existing approaches to the definition of the digital economy has shown, there is still no consensus on the definition and content of this term, which leads to problems in identifying the elements that are included in it. The development of strategic planning in the digital economy determines the specifics of the planning process, the choice of appropriate methods and their implementation. A model of the enterprise strategic planning digitalization platform is proposed, reflecting the most significant subsystems, which can be modified taking into account the specifics of the company's actions in the external environment, as well as based on the competitive advantages of the internal environment and the relationship of the leading structural elements.
 Conclusions and Relevance. 
 Companies in the new business environment need new approaches to strategic planning that take into account current management aspects. The introduction of digital technologies will maximize the use of information technology resources in order to increase the productivity and financial performance of corporations. The process of managing the company's strategy using digital technologies allows you to conduct operational control over revenues and expenses, optimize inventory. The development of strategic planning of enterprises should be synchronized with the corresponding improvement of the regulatory framework. The identified features of the formation of indicators of companies ' competitiveness, as well as the scheme of digitalization of the platform for strategic planning of their activities can be recommended for use in the practice of corporate financial management, long- term financial planning and budgeting.

Is Deteriorating Air Quality Impacting Stock Performance in India? Air Quality Index Predicts Stock Performance

Background/objectives: This study attempts to examine a systematic relationship between air quality index (AQI) and the performance of stock markets in India. India has ranked among the bottom five countries in environmental performance index (EPI) by World Economic Forum (WEF). Previous studies in this field conducted in other parts of the world indicate a direct relation between environmental performance and market performance; however, the case of India may prove to be different considering the Indian environmental policy, environmental accountability, population, and income and development aspects. Methods: We have employed linear regression technique to ascertain the impact of AQI on stock returns. AQI data from 13 stations across India are the dependent variables. These dependent variables are each regressed individually for each stock market index from Bombay Stock Exchange (BSE) equity index, Sensex. Therefore, there are 17 models where AQI from the chosen 13 stations has been regressed with each of the industry specific index. A descriptive analysis is also performed to know the yearly averages of the AQI across stations used in the study. Findings: Our results confirm that there exists a negative association between AQI and stock returns for top-performing growth stocks. The results also indicate that there is a positive association between AQI and capital intensive industry stocks, while a negative association was observed in the case of labor-intensive industries. The findings indicate that AQI is a predictor for stock returns in India in the short term. Application: Environmental influences on stock market performance are becoming more potent than ever before as the negative externalities of pollution impact the financial performance of corporations. Keywords: Air Quality Index, Stock Performance, Environmental Policy, Indian Stock Market, Air Pollution.

ANALISIS RASIO KINERJA KEUANGAN PROFITABILITAS PT WIJAYA KARYA (PERSERO) TBK. PERIODE 2014 - 2018

In estimating the risk in the face of uncertainty , companies can use analysis as a financial report estimated future formulation of the plans . Use report analysis a finance company capable of know estimation the work of these efforts division in his company. To know the financial performance of corporations in this is done through the profitability analysis ( rentabilitas ). Through the ratio of the company capable of measuring the extent to which the company ability to obtain profit. Objectives in this research is to investigate and to identify the financial performance of pt wijaya karya ( persero ) tbk a period of 2014 until 2018. In this research data collection used through via a observation and the literature study with reference to the company financial performance data. Research methodology in the writing of this is done through which is done based on the ratio of the with of a quantitative approach . Observation data to the financial pt wijaya karya ( persero ) tbk the period 2014 until 2018 . Based on the results of the analysis can summarized in general during the past year observation data ratio in the ratio of the gpm, npm, oim roe and had fluctuations caused earnings up and down and ratio in roa was decreasing.keywords : Ratio Analysis, Financial Performance, Profitabiliy

Good Corporate Governance dan Kinerja Non Keuangan

The purpose of the research is to know the relationship between corporate governance and non financial corporate performance. The rating of corporate governance perception index (CGPI) is used by the Indonesian Intitute for Corporate Governance to meansure the corporate governance implementation, employee productivity as a business internal prespective measurement, and employee development corverage as a learning and growth perspective measurement. This research also uses control variable that are activa composition and growth opportunities. Using a multiple regression to test the hypothesis that corporate governance and non financial corporate performance are positively related. The analysis shows that there is a significant positive relationship between corporate governance index and employee productivity, but there is no significant positive between corporate governance and employee development coverage.

The Mediation Effect of Financial Leverage on the Relationship between Ownership Concentration and Financial Corporate Performance

The purpose of this paper is examining the impact of financial leverage as a mediation variable on the relationship between ownership concentration and financial corporate performance. To test the hypotheses, multiple regression analysis is used. The statistical population of this research is all listed companies in Tehran Stock Exchange. However, data were available only for 60 companies during the period of 2004-2015. The research results show that the ownership structure negatively affects the financial corporate performance. Moreover, the financial leverage explains the relationship between the ownership concentration and financial corporate performance. It is recommended to the investors and other users of financial statements to increase the quality of their portfolio decisions, by taking into account the hidden impact of financial leverage on the relationship of ownership concentration and the companies’ performance, in addition to the direct impact of ownership concentration on the companies’ performance.

Key Aspects of Corporate Activities Analysis through the Prism of Domestic Studies

Today, the corporate sector features the considerably higher risks of corporate performance with the accordingly higher standards of accountability for results, which largely depend on objectivity, timeliness and comprehensiveness of assessment of the existing and expected financial performance of corporations. This enhances the role and significance of an important analytical field, the corporate activities analysis.
 The role of economic analysis in the context of market economy and globalization can hardly be overestimated, since the analysis permeates all the operative phases of a corporation. It precedes planning of indicators for the next period, helping organize production processes in a rational and reasonable way, improve collection and processing of information on their progress in the accounting system, assess the situation, and formulate important propositions to correct deficiencies and introduce best practices.
 Financial analysis is important in the economic operation of a corporation as it enables it to seek reserves to improve its financial condition; to assess the adequacy of use of all the types of financial resources; to take timely measures to improve the solvency, liquidity and financial stability; to ensure optimal production and social development by use of reserves found through the analysis; to develop plans for financial recovery.
 Methodology and organization of the corporate activities analysis is conditional on the organization and operation specifics of corporate enterprises. The following characteristics of a corporation are covered by analysis: economic activity; technological and organizational structure; interaction of business units within a corporation; capitalization; budgeting; integration of information system for analysis; variability in the conditions of risk.
 The review of studies devoted to corporate activities analysis shows that domestic and foreign experts offer different methods for analysis of financial statements, depending on the goals and objectives of the analysis, available information, technical support, the efficiency of solutions for analytical and management tasks, experience and qualification of staff. The corporate activities analysis will be more objective when new analysis concepts are adopted, focused on the future.

The Relationship Between Corporate Social Responsibility And Corporate Financial Performance – Evidence From Empirical Studies

Socially responsible investment (SRI) has experienced strong growth in recent years. In 2012, $1 out of every $9 US assets under professional management was invested in some form of sustainable investment. Global sustainable investment assets have expanded dramatically, rising from $13.3 trillion at the outset of 2012 to reach a total of $21.4 trillion at the start of 2014. Most of the SRI assets are in Europe (63.7 percent), but the relative contribution of the United States has increased from 28.2 percent in 2012 to 30.8 percent in 2014, and over this two-year period, the fastest growing region has been the United States, followed by Canada and Europe. These three regions are also the largest regions in terms of assets, accounting for 99 percent of global SRI.With this growth one most important issues is whether it pays for organizations to concern themselves with social responsibility, and whether there are any tradeoffs to sustainable investing. Much of the present research on this question is based on the views of Friedman and Freeman. But changes in economic development, national and local security, and the growing expectations of stakeholders influence how social performance is defined, and thus corporate performance as well.The aim of this article is to examine correlations between CSR and financial corporate performance, based on empirical studies conducted by other authors in different countries. In total, the analysis comprises 53 studies and the results obtained for 16,119 companies.

Stakeholder Prioritization, Strategic Corporate Social Responsibility and Company Performance: Further Evidence

AbstractUsing KLD data on more than 900 company's performance over a nine‐year period in seven areas of corporate social responsibility (environment, community, corporate governance, diversity, employee relations, human rights, and product quality), this research note re‐tests Michelon et al. proxies for prioritization and strategic approaches to CSR. The results show that, when a company pursues CSR initiatives that are linked to stakeholder preferences and allocates resources to these initiatives in a strategic way, the positive effect of its CSR initiatives on financial corporate performance (CP) strengthen. The analysis of KLD's variance and top tiers is thus proposed as a parsimonious way to measure when companies link their CSR initiatives to salient stakeholder preferences and undertake the corporate social actions that are ultimately relevant to the company's strategy and financials. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment