Financial Performers Research Articles

COVİD-19 SALGINININ GIDA SEKTÖRÜ ÜZERİNDEKİ FİNANSAL PERFORMANS ETKİSİNİN ENTROPİ TABANLI VE PROMETHEE YÖNTEMİ İLE ANALİZİ: 2017-2020 DÖNEMİ

Bu çalışmada, Kamuyu Aydınlatma Platformu’nda (KAP) bilgileri verilen ve 2017-2020 döneminde gıda sektöründe faaliyet gösteren 17 firmanın finansal performans analizleri incelenmiştir. Bu bağlamda finansal tablolardan elde edilen likidite, finansal, varlık-sermaye yapısı, faaliyet ve karlılık oranlarından oluşturulan 16 adet finansal oran kullanılmıştır. Entropi ve PROMETHEE yöntemleri kullanılarak firmaların finansal performans analizleri gerçekleştirilmiştir. Küresel boyutta birçok alanı etkisi altına alan Covid-19 salgının gıda sektöründeki firmaların finansal performanslarının etkisi araştırılmış ve salgının başladığı 2020 yılı ile önceki dönemleri kıyaslanarak değerlendirilmesi amaçlanmıştır. Bu anlamda Çok Kriterli Karar Verme (ÇKKV) tekniği olan Entropi yöntemi ile ağırlıklandırma hesaplanmış ve elde edilen ağırlıkların diğer bir ÇKKV tekniği olan PROMETHEE yöntemi kullanarak 2017-2020 dönemi finansal performans analizleri yapılmıştır. Çalışmada Covid-19 salgınının etkisinin başladığı 2020 yılı bir önceki döneme göre bazı gıda firmalarının finansal performanslarının arttığı ve bazı firmaların ise finansal performanslarının düştüğü tespit edilmiştir. Ayrıca 2017-2020 dönemi aritmetik ortalama finansal performans sıralamasına göre en başarılı firma KRVGD gıda firması olurken, en düşük finansal performans değerine sahip firma ise TETMT firması olduğu görülmüştür. 2017, 2018, 2019 ve 2020 yıllarında sırasıyla en iyi finansal performans sıralamayı gösteren BANVT, PETUN, ULKER ve KENT firmaları iken, verilen yıllarda sırasıyla en düşük finansal performans sıralamaya sahip TETMT, VANGD, VANGD ve TETMT firmaları olduğu tespit edilmiştir.

Hospital Ownership and Financial Stability: A Matched Case Comparison of a Nonprofit Health System and a Private Equity-Owned Health System.

The long-term financial stability of hospital systems represents a "grand challenge" in health care. New ownership forms, such as private equity (PE), promise to achieve better financial performance than nonprofit or for-profit systems. In this study, we compare two systems with many similarities, but radically different ownership structures, missions, governance, and merger and acquisition (M&A) strategies. Both were nonprofit, religious systems serving low-income communities - Montefiore Health System and Caritas Christi Health Care. Montefiore's M&A strategy was to invest in local hospitals and create an integrated regional system, increasing revenues by adding primary doctors and community hospitals as feeders into the system and achieving efficiencies through effective resource allocation across specialized units. Slow and steady timing of acquisitions allowed for organizational learning and balancing of debt and equity. By 2019, it owned 11 hospitals with 40,000 employees and had strong positive financials and low reliance on debt. By contrast, in 2010, PE firm Cerberus Capital bought out Caritas (renamed Steward Health Care System) and took control of the Board of Directors, who set the system's strategic direction. Cerberus used Steward as a platform for a massive debt-driven acquisition strategy. In 2016, it sold off most of its hospitals' property for $1.25 billion, leaving hospitals saddled with long-term inflated leases; paid itself almost $500 million in dividends; and used the rest for leveraged buyouts of 27 hospitals in 9 states in 3 years. The rapid, scattershot M&A strategy was designed to create a large corporation that could be sold off in five years for financial gain - not for health care integration. Its debt load exploded, and by 2019, its financials were deeply in the red. Its Massachusetts hospitals were the worst financial performers of any system in the state. Cerberus exited Steward in 2020 in a deal that left its physicians, the new owners, holding the debt.

Influence of firms’ financial performance on disclosure of sustainability initiatives and assurance of sustainability reports

This study provides a better understanding of the possible influence of firms’ financial performance on the disclosure of sustainability initiatives and assurance of sustainability reports (Perego & Kolk, 2012). The study analyzes the use of Big4 accounting, engineering, and boutique/consultancy firms for assurance of sustainability reports. A total of 2084 sustainability reports from 42 different countries were retrieved from the Global Reporting Initiative and the corresponding financial variables were obtained from the S&P Capital IQ database. Multilevel logistic regression analysis was undertaken to investigate the issue. We hypothesize that companies with higher financial performance will be more likely to choose an assurance provider from the Big4 (Carey, Simnett, & Tanewski, 2000). While we find that higher financial performers are no different from other performers (as proxied by EVA, TEV, or ROS) when it comes to Big4, we do find that engineering firms are approximately seven times more likely to be chosen as an assurance provider, after controlling for other variables (when EVA and TEV (not ROS) is used as a proxy for financial performance). Importantly, the number of employees and being in the manufacturing industry are significantly related to choosing an engineering firm as an assurance provider when EVA or TEV is used as a proxy for financial performance, and significantly related to choosing a boutique/consultancy firm when ROS is used as a proxy for financial performance.

How Does Firm Characteristics Affect the Choices Dividend Payout? Evidence of Firms Listed in the Tunisian Stock Exchange

This article investigates the relationship between some financial criteria and dividend payout policy choices of Tunisian firms’ context. Specifically, we examine whether the determinant the firm characteristics affect the firms’ policy choices to pay dividend. Overall, this research adds to our understanding of firms’ dividend payout policy choices. It shows that the all included variables present strongest motivation to the dividends payout choice. The results also suggest that good financial performers are more likely to pay dividends more regularly. First, evidence on the relationship between the various types of financial characteristics and firms’ choice of dividend payout frequencies should be useful to investors. Second, the findings of this study provide positive effects of firm performance, total of sales, firm value, and firm growth level on the dividend payout frequencies. The analysis indicates that dividend policy is related to firm value and there is a positive association between the firm’s share pare price value and the dividend policy payout.

LEVERAGING FINANCIAL MANAGEMENT PERFORMANCE OF THE SPANISH AEROSPACE MANUFACTURING VALUE CHAIN

We study financial management performance during 2008–2013 for the Spanish aerospace manufacturing value chain and the links with managerial decisions. Data from company financial statements is analysed with Principal Component Analysis, Data Envelopment Analysis and an Artificial Neural Network. Top financial performers focus on liquidity management rather than on returns: both in the short term, by increasing levels of current assets and funding them with short-term liabilities, as well as increasing asset turnover; and in the long term, by aligning equity to non-current assets, while reducing asset and debt intensity levels. Only the manufacturing value chain is analysed, showing the potential for future research in related fields (e.g. Value chain, country). Benchmarking and forecasting financial performance yields information and enables agility and accuracy in the strategy setting process. This study makes a unique contribution because it applies the scientific method where no previous related studies have done. It offers the novelty of using a single metric while Ratio Analysis requires multiple unweighted measures. We contribute by: (a) providing a method based on publicly information to benchmark and predict financial performance, thus offering benefits for aerospace stakeholders and academia; and (b) employing a big data sample that closely represents the population.

Exploring the Nexus of Nonprofit Financial Stability and Financial Growth

Taking a unified approach to studying nonprofit financial health, this research tackles a key question that has remained unexplored in the literature: “What lies at the intersection of the two key dimensions of financial health–financial stability and financial growth?” Specifically, we identify and compare nonprofits that exhibit high levels of financial stability and growth (high financially performing) to those that exhibit low levels (low financially performing)? Overall, we find that high financial performers (HFPs) tend to be older and larger organizations (in terms of unrestricted net assets and total revenue). HFPs are also more likely to report capital assets, and report high levels of compensation. Finally, HFPs tend to contain their overhead spending by exercising efficiency by investing in talented officers (paying more than the rest), but limiting the share of officer compensation, administrative, and fundraising expenses, as a percentage of total expenses. The results of the study should be informative to stakeholders attempting to understand the profile of an organization that is successfully able to achieve both capacity growth and financial stability.

Deterring Extortive Corruption in Korea through Democratization and the Rule of Law

AbstractExtortive corruption is a particularly harmful form of graft, in which politicians threaten private property to induce bribe giving. While perceived rates of corruption in Korea sharply declined with democratization, instances of abuse of power remain, most recently at the National Intelligence Service. Employing previously classified data, this comparative analysis of industrial restructuring programmes demonstrates how democratization and a stronger rule of law created an inhospitable environment for extortive corruption. Whereas the dictator Chun Doo-hwan manipulated industrial rationalization measures to confiscate the assets of average financial performers that had withheld bribe contributions or were politically suspect, democratic checks on authority protected firms from President Kim Dae-jung's willingness to sacrifice property rights for the sake of corporate restructuring objectives. Potential victims of expropriation could appeal for support from competing veto players. An independent j...

The Effects of the Financial Crisis on the Financial Performance of Malaysian Companies

The 2007/08 financial crisis which began in the United States was not felt in Malaysia until the last quarter of 2008 where GDP stalled and then began to fall. The country has a high export to GDP ratio and in 2009 the contraction in manufacturing exports was steep. This paper investigates the effects of the crisis on the financial performance of 70 companies in the manufacturing sector over a period of 5 years from 2006 to 2010. Using factor analysis, an initial set of 21 financial ratios was reduced to just six significant ratios. Using this smaller set of representative ratios, the sample companies were cluster analyzed into 4 categories of poor, below average, above average and good financial performers. The results showed that there is a direct effect of the financial crisis on the financials of companies in the study where 46 companies categorized as good in 2006 fell to just 6 in 2010 while 7 companies in the poor category increased to 27 during the same period. Of particular concerns would be the 15 companies that fell three clusters down from good to poor performers and 15 out of 17 companies in the average categories that dropped into the poor performing category. A key finding from this study is that when a financial or economic crisis occurs, most companies’ financials would be severely and adversely impacted and if the negative economic conditions do not improve, there would be high probabilities that many companies would face liquidity and solvency issues that could eventually lead to collapse and bankruptcies. Finally, with just 6 key financial ratios, a company’s financial performance can be tracked and analyzed over a period of time resulting in the enhancement of the quality of credit evaluations as well as the minimizing of investor risks.

2012 Top Financial Performers in the Club Industry

This study uses survey research to examine the financial performance of the U.S. club industry for 2012. One hundred and ten clubs submitted financial data to this study. 24 financial ratios, together with median key financial data from the balance sheet and the statement of activities were calculated for the sample. Results provide a better understanding of the key financial characteristics of top- and low-performing clubs in 2012. Results further show that regardless of the slight upturn in the U.S. economy in 2012, the financial results for the club industry in 2012 were mixed.

The Influence of CSR Disclosure Structure on Corporate Financial Performance: Evidence from Stakeholders’ Perspectives

This study aims to understand the potential influence of CSR disclosure structure on corporate financial performance. Content analyses had been carried out on the 2009-2011 annual reports of the leading 30 public listed companies in Malaysia. For terms of methodology, sentence count was used as a unit of analysis to measure disclosure depth, while a finer-grained analysis of the CSR disclosure structure was performed to measure disclosure breadth and disclosure concentration. There was found to be a significant relationship between CSR disclosure structure and the corporate financial performance in the subsequent year. The results suggest that good financial performers are those companies that display a relatively high breadth of disclosure, while at the same time demonstrate the ability to disclose a concentrated structure of CSR disclosure to the definitive stakeholders. The findings of this study imply that it is not the volume of disclosure that matters, but the variety of items disclosed and concentration to the definitive stakeholders. On one hand, the study findings generally offer insights into the workings of successful reporting strategies for business organisations in Malaysia, while on the other hand, the study does provide inputs pertaining to the betterment of the CSR framework, for Bursa Malaysia and the relevant regulatory bodies to deliberate upon.

Net Revenue per Adjusted Discharge Continues to Drive Success

I visit approximately 80 healthcare systems per year. Many of systems have been touted as models for the future. As a strategic adviser with a particular interest the intricacies of physician engagement and managed care negotiations, I have been privy to confidential information that has led me to conclude that highperforming model health systems have one common, essential element: exceptionally high net revenue per adjusted discharge driven by high managed care rates. In addition to the confidential, proprietary data I have collected over the years, public reports support my hypothesis that high commercial rates are the essential component driving the ability of a health system to achieve consistently strong financial performance.Without high commercial reimbursement rates, health systems will not have the dollars necessary to fund innovation; successfully employ a large group of physicians; develop a high-functioning, clinically integrated network; and gain national recognition for excellence care delivery.SIGNIFICANT VARIATIONS IN MANAGED CARE RATESHealthLeaders Media (2009) reported that, 2008, the most profitable hospitals gained their financial advantage primarily from revenue generation - a function of high negotiated commercial rates and a large proportion of nongovernment patients - not from cost-cutting or efficiency. The top quartile of the most profitable hospitals reported a case-mix-index-adjusted net operating revenue per discharge that was $854 higher than for hospitals the bottom quartile ($8,924 vs. $8,070). However, the expense differential per discharge between the high and low financial performers was only $316 ($8,018 for the top quartile vs. $8,334 for the bottom quartile).The data suggest that the variation negotiated payer rates is not related to superior quality or service but rather is a function of clout. The 2011 Examination of Care Cost Trends and Cost Drivers report, released by the Massachusetts attorney general's office, notes (Office of Attorney General, 2011, p. 15):The difference prices each major health insurer pays to its lowest paid physician groups versus its highest paid physician groups exceeds 145%, and for two health insurers, exceeds 230%. Similarly, the difference payments made to the lowest paid versus highest paid hospital each major health insurer's network exceeds 170%, and for two health insurers, exceeds 300%.The report concludes that these wide disparities prices are not explained by differences quality, complexity of services, or other characteristics that might justify variations prices paid to (Office of Attorney General, 2011, p. 2).In its National Institute for Care Reform research brief Health Status and Hospital Prices Key to Regional Variation Private Care Spending, the Center for Studying System Change (2012) examined data on healthcare spending variation for UAW (United Auto Workers) union members and their dependents 19 markets. Spending per enrollee varied twofold ($4,500 vs. $9,000) communities studied even though benefits were identical. The researchers concluded that the wide range prices negotiated with hospitals explains a large share of the regional spending variation. For example, Akron, Ohio, the study reports the UAWs negotiated rates for hospital inpatient were 1 45 percent of Medicare; negotiated rates for emergency department were 169 percent of Medicare. In Cleveland, the UAW reportedly paid hospitals 30 percent more for the same provided Akron. This variation has led providers Akron to wonder whether, to maintain competitive premiums, health plans are being forced to suppress the rates for Ohio hospitals that carry little negotiating clout so that they may accept the higher rates demanded by hospitals with strong market power Cleveland.The high variation negotiated rates is further documented a second research brief by the Center for Studying System Change, which it concludes that in extreme cases, some hospitals command almost five times what Medicare pays for inpatient and more than seven times what Medicare pays for outpatient services (Ginsburg, 2010, p. …

The rational emotions of FC København: a lesson on generating profit in professional soccer

Professional team sports clubs in Scandinavia and Europe operate in a complex combination of rational economic logic and emotional irrational behaviour. With a few exceptions most clubs favour winning over profit, thus producing a range of severe financial problems as a direct consequence. This essay investigates this fact and deals with Danish soccer, its financial problems, as well as the conditions determining the financial instability of the majority of the clubs. Employing a theoretical framework that enables me to describe the financially unstable clubs as well as the financial best performers in the sports business, I explain why only a few clubs are capable of combining economic gain with sporting success. The Danish soccer club FC København is chosen to be the case and turning point in this study, as it serves as a counter example illustrating how profit and championships can actually be combined in certain logic of ‘rational emotionality’. The ‘extremity’ of the case in this respect serves as a way to expose the general rules of commercial sports.

An Analysis of Inventory Turnover in the Belgian Manufacturing Industry, Wholesale and Retail and the Financial Impact on Inventory Reduction

Various inventory studies have been published in the last decades. Some studies emphasize the importance of low inventories, other examine the evolution of inventories over time and especially focus on the impact of the just-in-time (JIT) revolution. The aim of this paper is to investigate the level of inventories held by Belgian companies at one moment in time, namely May 2004. First we examine differences in inventory ratios between manufacturing industry sectors as well as between wholesale and retail. We find empirical evidence that the type of production process is the most important driver for work in process inventory. The finished goods inventory ratio also differs significantly among industry sectors, but here the reasons for the difference are harder to distinguish. Finally we find the inventory ratio to be significantly higher in retail than in wholesale. Furthermore, we examine the financial impact of inventories in the manufacturing industry. We find that companies with very high inventory ratios have more chance to be bad financial performers. Regression analyses partially support the hypothesis of a negative relationship between inventory ratio and financial performance but significant results could not be obtained for all sectors.

Collaborative innovation throughout the extended enterprise

PurposeTo innovate, many high performing firms are collaborating beyond their organizations – with their extended networks of suppliers, customers, business partners and others. Such collaboration, however, is not easily accomplished. IBM Consulting offers a framework for managing these alliances – its ABCs of collaborative innovation – that can improve the chances of success. This paper aims to explore this framework.Design/methodology/approachIBM Consulting has recently completed a major study of innovation success and problems as perceived by top management. For example, they found that the strongest collaborators in a recent IBM study were also the strongest financial performers. This paper studies these firm's success factors.FindingsTo paper finds that to avoid the pitfalls of collaborative innovation, IBM Consulting's research and experience has determined that the key guiding principles are: alignment, boundaries and commitment, which they call the ABCs.Practical implicationsAlignment entails synchronizing the strategic vision and innovation goals with the implementation of these throughout the organization, focusing on collaboration both vertically and horizontally. Managing boundaries enables collaboration across organizations, establishing structures and processes regarding governance, operations and technology. Finally, an ongoing commitment is required to orchestrate and systematize collaboration for innovation throughout the organization and its extended enterprise over time.Originality/valueThe paper offers a useful top‐level review of the success factors for collaborative innovation.

Are the largest public retailers top financial performers? A longitudinal analysis

PurposeTo empirically study the performance of large retailers in terms of the strategic profit model and the retail performance index over time.Design/methodology/approachThis study looks at how well the largest public US retailers performed financially from 1982 to 2001. Several measures are employed, including sales and profit growth, profit margins, asset turnover, return on assets, financial leverage, and return on net worth. The performance of Wal‐Mart is broken out.FindingsAs a group, the largest public US retailers have not performed very well across a number of measures. They have not been “high performers.” Wal‐Mart has outperformed other very large retailers for virtually every financial measure. It has been a “high performer” by not losing its edge as it has grown.Research limitations/implicationsOnly public retailers were included in the study. Retailers reported financial data using different fiscal years. The federal government converted its data from SIC to NAICS codes during the time frame of the study; the data were converted based on a model from Retail Forward.Practical implicationsAs the largest firms seek to heighten their marketplace concentration, they have to be careful not to fall into a growth trap. They need to be more devoted to driving up their financial performance.Originality/valueThe paper reports the results of a comprehensive longitudinal study of the largest public retailers, and focuses on applying two under‐researched retail performance tools: the strategic profit model and the retail performance index.

IT Savvy Pays Off: How Top Performers Match IT Portfolios and Organizational Practices

Information technology is major investment for most enterprises and constitutes a portfolio of investments. Just like any other investment portfolio, the IT portfolio must be balanced to achieve alignment with business strategy and the desired combination of short and long term pay off. This portfolio balancing is the role of senior management and should be integrated into firms' IT governance processes. Top financial performers have matched particular organizational practices and competencies with IT portfolio allocations to achieve specific business goals. In short, they have more IT savvy and it pays off.

Three AWWA Members Among Top 10 Environmental Companies

This article reports on three companies that are AWWA members who are among the top 10 financial performers chosen from a group of publicly traded environmental service and water companies followed by TechKNOWLEDGy Strategic Group, a Boulder, Colorado‐based management consultancy. The article describes the model used for ranking the top performers, and gives contact information for obtaining a copy of the report.

Fortune's 50 Best Companies for Minorities: Does Diversity Pay?

This paper investigates the relationship between racial diversity and financial performance. Annually, Fortune magazine publishes a list of the 50 Best Companies for Minorities. We compare the accounting profitability of firms appearing on the list to two benchmarks: 1) A set of firms matched by industry, size, and prior performance; and 2) Value-weighted industry averages. Results indicate that the companies recognized by Fortune as minority friendly, are strong financial performers. However, superior performance cannot be linked to diversity initiatives. Fortune firms outperform benchmarks as early as three years prior to recognition. While, there is some indication of relative improvement in the years leading up to and immediately following listing, no significant difference is found between the sample and benchmarks five years after listing.

An empirical assessment of the financial performance of Malcolm Baldrige Award winners

The Malcolm Baldrige Award was created in 1987 to curtail the US loss of market share to foreign producers and to encourage a focus on management of quality and customer satisfaction. However, since its inception there has been a long‐running controversy on whether winning this award does enhance future financial performance and ultimately shareholders' wealth. Examines how Baldrige Award winners perform with respect to several accounting and financial metrics. Specifically, assesses Baldrige Award winners' financial performance relative to industry benchmarks and a control group of similar firms. The results suggest that award winners are superior financial performers and are valued higher by investors compared with similar sized firms and industry benchmarks. However, no evidence was found that winning the award causes changes in firm value in the award year and subsequent years. The results suggest that the Baldrige Award winners are examples of firms that stand out as performance leaders in their industries. Since one of the purposes of the award is to stimulate quality awareness among US firms, the Baldrige recipients may be construed as a conspicuous centerpiece of the US quality management movement.

Earnings management by firms announcing earnings after SEC filing

This study examines motivation and stock market reactions of firms announcing earnings in the Wall Street Journal (WSJ) after filing with the Security Exchange Commission (SEC). Most firms announce earnings in the WSJ before SEC filing. Firms that reverse this sequence are voluntarily delaying public earnings announcements. The authors find that these firms are not only poor financial performers but also engage in earnings managements. They are delaying their WSJ announcements to postpone announcing bad news. The authors find significant stock price reactions to both the SEC filing and the WSJ announcement. The price reaction to earnings is incomplete at the SEC filings. The market continues reacting to firms' subsequent WSJ announcements as if the SEC filing fails to communicate earnings information to some investors.