Financial Profitability Research Articles

IMPACTS OF DIGITAL TRANSFORMATION ON FINANCIAL PERFORMANCE: EVIDENCE FROM VIETNAM

Today, with the Industrial Revolution 4.0, digital transformation is taking place strongly in many different fields. Digital transformation can bring a competitive advantage to enterprises. However, enterprises also spend a lot of money to implement digital transformation. Therefore, whether or not digital transformation increases company performance is always of concern to company leaders. This paper aims to analyse the impact of Digital Transformation on Financial Performance, including Revenue, Profit and ROA in Vietnam. Digital Transformation is represented by the variables Cloud Computing, Big Data Analytics, Artificial Intelligence, and the Internet of Things. We used Google Forms to survey 314 leaders of enterprises in Vietnam. Then, we used descriptive statistics, correlation and regression analysis to analyse the data. Research results show that Cloud Computing, Big Data Analytics, and Artificial Intelligence positively impact financial performance. Enterprises that apply digital transformation have better financial performance than other enterprises. In contrast, there is no connection between the Internet of Things and financial performance. In addition, Firm type and Firm size also affect financial performance. FDI enterprises have higher performance than others, and more giant-sized enterprises have higher performance than others.

The Effect of Financial Leverage, Profitability and Dividend Policy on Firm Value

This research provides valuable insights into the factors influencing company value within the manufacturing sector, specifically the cement subsector in Indonesia. Financial leverage, profitability, and dividend policy are key variables examined, as they significantly impact a company's financial health and market perception. Financial leverage reflects a company’s reliance on debt financing relative to equity, and the study shows that higher leverage can positively affect company value if managed effectively, thereby increasing returns for shareholders. Profitability, often measured through indicators such as Return on Assets (ROA) or Return on Equity (ROE), also plays a significant role in enhancing company value, as it reflects efficient resource management and attracts investor interest. Additionally, a consistent dividend policy reinforces the company’s reputation and draws investors, contributing positively to company value in the stock market. The findings emphasize that cement subsector companies with balanced leverage, solid profitability, and a consistent dividend policy tend to perform better in terms of company value, providing essential insights for stakeholders in optimizing strategies to maximize company value.

The role of consumer-based brand equity on the prolongation of trademarks

AbstractTrademarks are an integral part of a firm’s brand equity. While extant research looked at the outcomes of trademarks, e.g., a firm’s financial valuation, profitability, and productivity, limited knowledge exists regarding the factors influencing a company’s decision to prolong or terminate trademarks. For the first time, the presented research investigates the effects of consumer-based brand equity (CBBE) dimensions on the decision to prolong or terminate trademarks and how trademark characteristics and the level of regulation in a product category moderate these effects. Utilizing a unique dataset covering 25 countries and 56 product categories from 2001 to 2019, tracking 1,446 trademarks, this research establishes empirical evidence for CBBE’s critical role in trademark prolongations. The CBBE dimension relevant stature (reflecting brand knowledge, esteem, and relevance) positively affects trademark prolongation, whereas the CBBE dimension energized differentiation (reflecting brand uniqueness) negatively impacts trademark prolongation. Specifically, brand-association trademarks and trademark age attenuate the negative effect of energized differentiation on trademark prolongation. Moreover, low levels of regulation reduce the probability of trademark prolongation for brands scoring high on knowledge, esteem, and relevance. Vice versa, low levels of regulation increase the probability of trademark prolongation for highly differentiated brands. These results translate into important managerial implications.

A Study of Cultural Diversity and Ethical Climate towards Employee Selection in Higher Education Institutions

This study investigates the critical role of employee selection processes in organisational success, focusing on the impact of cultural diversity (CD) and ethical climate (EC) within Higher Education Institutions (HEIs) in Northern Malaysia. Employing a quantitative methodology and a descriptive research design, data were collected from academic staff through a structured questionnaire. The analysis using SPSS software reveals strong positive correlations among employee selection, CD, and EC. The Kaiser-Meyer-Olkin (KMO) measure and Bartlett’s Test of Sphericity confirm the data's suitability for factor analysis, while Cronbach’s alpha coefficients indicate robust internal consistency. The findings underscore the importance of aligning employee selection processes with organisational strategies and values to attract competent employees. Additionally, effective management of CD enhances financial performance, competitive advantage, and profitability. An EC significantly promotes ethical behaviour, job satisfaction, and organisational performance. The study highlights practical implications for integrating diversity and ethical considerations into selection strategies, providing valuable insights for human resource management and organisational behaviour. The research emphasises the need for a holistic approach to talent acquisition by demonstrating how selection practices influence organisational outcomes. This approach fosters inclusivity and ethical leadership, ultimately contributing to long-term organisational success. These findings comprehensively understand employee selection, CD, and EC dynamics in enhancing institutional effectiveness and achieving strategic goals in HEI settings.

Harnessing network power: Weaponised interdependence in global tax policy

AbstractFor decades, global tax policy has grappled with the challenge of mobile capital, failing to harness the regulatory potential of network power. This oversight has allowed tax havens to flourish, and multinational corporations and wealthy elites to circumvent state authority, undermining national fiscal policies and democratic capacity to meet grand societal challenges, such as climate change and inequality. But recent regulatory innovations pave a different way forward. This article spotlights the dynamics of ‘weaponized interdependence’, suggesting a critical role for strategically targeting global corporate and financial networks in reinvigorating action against tax havens, tax avoidance and tax evasion. Identifying and exploiting network chokepoints – financial institutions, corporate subsidiaries and expert intermediaries – can empower states to reassert their sovereignty and counterbalance the structural advantages of global capital. This approach helps us understand how and why recent regulatory measures have effectively countered financial secrecy, profit shifting and sanctions evasion, repairing public finances and restoring democratic integrity. In an age where weaponised interdependence is predominantly linked to national security, this recasting of global tax policy highlights a progressive path for using network power to develop effective global economic frameworks, strengthen democratic capacity and address contemporary challenges.

The Influence of Financial Distress, Earnings Management, and Financial Performance on Firm Value with Good Corporate Governance as a Moderating Variable

This study examines the influence of financial distress, earnings management, and profitability on firm value, with good corporate governance (institutional ownership) as a moderating variable. Focusing on infrastructure sector companies listed on the Indonesia Stock Exchange from 2019 to 2023, this research employs Tobin's Q to measure firm value, the Altman Z-Score for financial distress, the modified Jones model for earnings management, and Return on Assets (ROA) for profitability. The findings reveal that profitability positively and significantly affects firm value, while financial distress and earnings management show no significant impact. Additionally, institutional ownership does not moderate the effects of financial distress and earnings management on firm value, though it successfully moderates the relationship between profitability and firm value. These results underscore the importance of profitability and good corporate governance in enhancing firm value, with implications for investor decision-making and corporate strategy in Indonesia’s infrastructure sector.

Institutional investment in addictive industries: an important commercial determinant of health.

The production of addictive commodities is subject to a range of commercial determinants. There has nevertheless been a gap in understanding how investments into addictive commodities may function as commercial determinants. Institutional investors can yield important financial power with their investment decisions. Many investors apply responsible investment (RI) policies to address environmental, social, and governance concerns. Negative screening is used to exclude certain sectors or companies from investment portfolios, mainly for ethical concerns. Negative screening also affects investment into tobacco and other addictive industries. This article investigates RI policies toward addictive industries among institutional investors that are signatories of the Tobacco-Free Finance Pledge (TFFP; N = 161). The TFFP is an initiative created in 2021 to de-normalize tobacco-related investments. The mixed-method study uses descriptive statistics to quantify the extent and scope of exclusion policies as well as institutional and geographical profiles of investors, and a qualitative analysis of the justifications for these exclusion policies. Some TFFP signatories apply negative screening to other addictive industries (gambling: 35%; alcohol: 24%; cannabis 12% of signatories). There are important differences in the applied exclusion thresholds, with only 47% of TFFP signatories applying a zero-tolerance policy to tobacco. Thresholds are higher for other addictive industries. Signatories also differ in terms of their geographical and investor profiles. Justifications pertaining to compliance with international standards and reputational risks were the most common. Addictive industries, such as tobacco, alcohol, gambling, and recreational cannabis, are increasingly excluded by investors. However, different understandings of RI influence how sector exclusions are implemented. Divesting from tobacco and other addictive industries is a crucial step toward a public health approach that prioritizes population health over financial profits. Prominent institutional investors are influential opinion leaders who can change the behavior of other investors and de-normalize controversial industries and reduce or prevent harm.

Influence of Industrial Relations with Ukhuwwah (brotherhood), ‘Adl (justice) and Ihsan (benevolence) among Islamic Universities

The existence of industrial relations with the industrialization drivers has been argued with the persistent competition among different entities, including workers, capitalists, bureaucrats, and authorities, to reduce operating costs while maximizing financial profits. While industrial relations have been relevant through the human resource management of organizations, from the perspectives of Islam, three core values, ukhuwwah (brotherhood), ‘adl (justice), and Ihsan (benevolence) are essential in establishing a harmonious and ethical relationship between employers and employees, which serves as a solid foundation for creating a positive work environment. This study used the grounded theory method through focused group discussion to explore the integration of Islamic values into the industrial relations of Islamic universities. It focuses on insights from participants who emphasized the significance of promoting positive human relationships, incorporating Islamic teachings, and maintaining a balance between procedural work and community-building activities. The study's findings suggest that incorporating these principles can establish a cohesive and morally upright work environment that is advantageous for both employees and organizations. Suggestions for the industrial relations unit, top management, board of governors, and the government involve cultivating strong unity through team-building, maintaining fairness with clear and open policies, and promoting excellence by supporting professional growth and empathetic work conditions.

Farmers’ Perception and Financial Profitability of Mustard Production in Bangladesh

The study was undertaken to assess farmers’ perception and explore the factors affecting farmers’ decision to adopt mustard production along with estimate financial profitability and identify potentials and problems of mustard production. Based on stratified random sampling, 120 farmers were interviewed using a structured questionnaire to collect primary data from different villages of Ullahpara upazila under Sirajganj district of Bangladesh. A combination of descriptive statistics, mathematical and statistical technique was used to analyze the data and to achieve the objectives. The study depicts that the highest number of the respondents (35%) belong to the 31-45 age group. Seventy two percent respondents were small farmers having land less than 1.0 hectare and they allocated 34% of their farm area for mustard production. Financial profitability analysis shows that mustard production was profitable on both variable cost and total cost basis and its benefit cost ratio (BCR) was more than one. In case of farmers perception, it was revealed that short duration crop, consumers’ preferences, product price, extension services and sharing of work among household members were the main driving factors for mustard production. Applying dichotomous logistic regression model, four factors namely, farmers’ age, number of family members, experience and farm size were found as significant determinants of adoption of mustard production. Large domestic market, limited use of high-yielding varieties, growing demand for mustard oil and attack of pests and diseases were found as important strength, weakness, opportunities and threats of mustard production, respectively. Finally, the study recommends that there are ample opportunities to enhance mustard production by ensuring access to quality seeds, adopting new technologies, securing fair prices, providing input subsidies, and improving institutional credit facilities with favorable terms and conditions. Bangladesh J. Nuclear Agric, 38(1): 65-80, 2024

Linking Environmental Management Systems to Firm Performance: Empirical Evidence from an Emerging Economy

This study aims to determine how environmental performance and customer satisfaction affect the relationship between environmental management systems and company performance. For this purpose, we have collected and analyzed data from 243 textile companies in Pakistan, using partial least squares structural equation modelling. Our empirical results indicate that environmental management systems have a positive and significant impact on business success, customer satisfaction and environmental performance. The findings also show that environmental performance and customer satisfaction mediate the relationship between environmental management systems and business performance in a complementary manner. Our findings show that environmental performance and customer happiness are essential for textile companies to benefit from environmental management systems. The results suggest that Pakistani textile companies should make better use of environmental management systems as valuable tools for addressing stakeholders' concerns and for boosting financial profits.

Exploring the Sustainability Performance of Circular Business Models in the Built Environment

Abstract The Circular Economy (CE) emerged in the last decade as an imperative path to transition towards more sustainable practices and go beyond carbon neutrality. Applying CE principle in the built environment has been investigated and recent research advocated for positive impacts if the sector embraces the paradigm shift and moves away from linear towards more circularity. Similarly, the literature regarding Circular Business Models (CBMs) has witnessed substantial growth as the latter holds the promise of providing a blueprint on how to make a financial profit while applying CE principles. Nonetheless, a gap remains in understanding the actual impact of CBMs in the built environment from a sustainability perspective. This paper will explore current literature regarding the environmental, economic, and social impacts of CBMs in the built environment to address this gap and provide a clearer understanding of the dynamics of circularity and sustainability. This exploratory research will provide valuable insights into the effectiveness of CBMs in fostering sustainability within the built environment.

Analisis Semiotika Pesan Moral Iklan Layanan Masyarakat Perilaku Konsumtif di Kanal Youtube Bagas Dwi Rizqi

Social marketing is a form of marketing created to address various social issues in society. Basically, social marketing has the same principles as commercial marketing in general. Both are forms of persuasive communication programs, where commercial marketing aims to gain financial profits, while social marketing aims to shape changes in behavior, both individuals, groups and social order. Researchers will further explore the moral message content of Consumer Behavior Public Service Advertisements contained in Bagas Dwi Rizqi Hidayat's YouTube content in a content analysis review. The theories used are mass media theory, analysis theory, moral messages, messages, morals, public service advertising theory, advertising, consumer behavior, factors causing consumer behavior, social media, YouTube, semiotic theory, Roland Barthes semiotics. The type of research taken by researchers is descriptive qualitative. The research data collection stage is carrying out the process of observation, documentation and literature research, data reduction results, formulating the problem, presenting the data, which is analyzed by the researcher until the stage of drawing conclusions. The author took five scenes to fulfill the needs of research conducted by researchers based on Roland Barthes' semiotic analysis which emphasizes the search for meaning of denotation, connotation and myth. Based on the results of this research, the researcher concluded that the Public Service Advertisement "Consumptive Behavior" directly describes events in society, especially the behavior of Indonesian people in shopping to the point of ignoring their own needs.

Weed management strategies for grain legumes in different regions of Morocco

This study examines weed management in legume crops in Morocco. Faced with the challenges of climate change, financial profitability, and herbicide resistance, farmers are adopting a range of strategies, from plowing to herbicide use to agroecological practices. A survey of 244 farmers was conducted in different regions of Morocco. The results show that crop rotation is the most common weed management practice (81.15%), followed by herbicide use (59.43%) and manual weeding (35.25%). Major challenges include weed diversity (81.16%) and weed control budget constraints (84.84%). Farmers’ observations suggest that larger plots are associated with higher weed frequency, underlining the importance of adjusting herbicide application according to field size. In summary, Moroccan farmers are adopting an integrated approach, combining plowing, crop rotations, and herbicides for effective weed management, while facing complex challenges. It is essential to promote innovative and sustainable farming practices, guided by the results of this study, with an emphasis on developing weed-resistant legume varieties. In addition, raising farmers’ awareness of best practices, including the judicious use of herbicides, is crucial for sustainable agriculture in Morocco.

Implementasi Dana Corporate Social Responsibility (CSR) terhadap Kesejahteraan Masyarakat dan Kelestarian Lingkungan

PT. Bumi Daya Agrotamas aims to put pressure on the world of work to be better in carrying out all its production activities so that companies not only think about achieving maximum financial profits but also participate in preserving the environment around which the company is established... these impacts can be in the form of beneficial impacts and detrimental impacts. For companies, the various impacts are that companies oriented towards the economic aspect (profit) are also required to have a responsibility, both to the social aspect and to the environmental aspect. Based on the research background above, the author is interested in conducting research with the title "implementation of PT corporate social responsibility (CSR) funds. Bumi Daya Agrotamas towards community welfare and environmental sustainability. This research was conducted to analyze the implementation of PT's corporate social responsibility (CSR) funds. Bumi Daya Agrotamas towards community welfare and environmental sustainability. This research uses qualitative with descriptive research type, data collection techniques are observation, interviews and documentation. The data obtained was analyzed using a qualitative analysis model. The results of the research show that the implementation of corporate social responsibility (CSR) funds impacts community welfare and environmental sustainability in PT case study. Bumi Daya Agrotamaskota Subulussalam. There are still many things lacking in being able to provide maximum results for the community and good cooperation between the company and the assisted community so there is still something that needs to be improved by the PT. Bumi Daya Agrotamas so that in the future there will be no social jealousy towards the PT and also here, openness is needed by the PT. Bumi Daya Agrotamas to the community so that the closeness becomes more positive and nothing undesirable happens in the future. Furthermore, corporate social responsibility (CSR) is a form of company activity in managing business to produce positive actions in the community to create a quality community.

Feasibility Analysis on Tempe Industrial Home (Case in Tempe Yayan Industrial Home, Lebaksiuh Village, Ciawi District, Kuningan Regency)

This study aims to evaluate the financial viability of tempeh home industry businesses by analyzing how production costs affect profitability. The design used in this study is a quantitative descriptive method with a technical survey approach. The data collection techniques include observation, interviews, and questionnaires (questionnaires). The results of this study are as follows: (1) Total production BEP and BEP business price of Tempe Yayan's home industry business in Lebaksiuh Village, Ciawi District, Kuningan Regency, were analyzed. (2) The R/C ratio analysis was used to analyze the profit and loss of the home industry. (3) The total profit of this home industry was calculated as a function of production costs, BEP price, and total profit. (4) Based on the results of the research and discussion conducted regarding the Profit and Loss Analysis of the Tempe YaYan Home Industry Business, future research could focus on a comparative analysis of financial performance and profitability across different tempay home industry ventures in various regions. The research would provide a broader understanding of best practices and challenges faced by similar businesses, offering valuable insights for both entrepreneurs and policymakers. (5) The research could explore the impact of government support and interventions on the growth and success of home industry enterprises, particularly in terms of capital access, production efficiency, and marketing effectiveness.

The Influence of Non-performing Financing and Financing To Deposit Ratio on Profitability in Sharia Commercial Banks in Indonesia

Islamic banks must also play an active role in building dynamics in society, one of which is financial profitability (ROA) and Non-performing Financing (NPF). Return on Assets (ROA) is a company's financial ratio that is related to profitability, measuring the company's ability to generate profits. Furthermore, if the NPF value of sharia banking decreases, it will increase the performance of sharia banks. This research aims to determine the effect of Non Performing Financing (NPF) and Financing To Deposit Ratio (FDR) on profitability at Sharia Commercial Banks in Indonesia. Panel data regression analysis is regression analysis based on panel data to observe the relationship between the dependent variable and the independent variable. The analytical method used in this research is the panel data analysis method using the classical assumption test (Ordinary Least Square) with the aim of carrying out the classical assumption test so that the estimator parameter values ​​are valid and unbiased. The research results found that NPF partially had no effect on the profitability of Sharia Commercial Banks in Indonesia, while FDR partially had an effect on the profitability of Sharia Commercial Banks in Indonesia.

PENGARUH NON PERFOMING LOAN (NPL) TERHADAP RETURN ON ASSET (ROA) PADA BANK MANDIRI,TBK

This research aims to find out the influence of Non-Performing Loans (NPL) on ROA at Bank Mandiri. Correlational quantitative research is the research method used. Financial reports, profit and loss statements, balance sheets and cash flow reports for the years 2013–2022 are the research samples. For this particular case, purposive sampling was used. The relationship between the NPL variable and ROA was tested using simple linear regression, correlation coefficient, coefficient of determination, and two-square t-test. Analysis was carried out using SPSS v.22 software. In line with the high level of non-performing loans faced by banks. This is because the higher NPL level indicates that banks are not managing their credit optimally and are not providing adequate protection to their customers. As a result, the absence of principal and interest payments on credit facilities causes the bank's return on assets to decline along with the increase in the non-performing loan ratio

The Effect of Audit Opinion, Financial Distress, and Profitability on Audit Report Lag (Empirical Study of Non-Banking State-Owned Companies Listed on The Indonesian Stock Exchange In 2018-2022)

This study aims to ascertain and present actual data on the impact of financial crisis, profitability, and audit opinion on the delay of audit reports. Non-banking state-owned companies listed in 2018-2022 on the Indonesia Stock Exchange are the subject of this study. The sample size was selected through purposive sampling which resulted in 100 observation data. By using secondary data, this research is quantitative in nature. Panel data regression using the EViews 12 application is the selected data analysis technique. The study's conclusions show that audit report latency is influenced concurrently by audit opinion, financial difficulty, and profitability. Audit report latency is significantly impacted positively by financial difficulty, while it is significantly impacted negatively by audit opinion and profitability

An effective imaging based diagnosis of Solar Photovoltaic System and performance parameters for smart solar power grid

Another of the most attractive power generation sources for residential, corporate, and commercial operations is energy production. Due to this compelling qualities, photovoltaic systems (PV) electricity production have increasingly attracted the attention of researchers and professionals. Nonetheless, the greatest obstacle in generating energy from the sun is the predictable discontinuous output power from photovoltaic (PV) systems, which is largely caused by climate. The power differential of a photovoltaic panels may considerably reduce the financial profit of large scale solar fields. For everyday proper management of electricity supply production, distribution, and storing as well as for judgement on the electricity market, results were consistent prediction of the electricity output of solar PV systems is essential. The 5 subjects mentioned in this article are: The varied faults which might occur in PV panels; internet Photovoltaic panels monitoring; Use of machine learning approaches in Photovoltaic module damage detection; Advantages of fault diagnosis in PV panels and the various motion sensors used for this purpose are discussed. Recommendation for future possible research paths are given in view of the evaluated research.

Dataset of an actual motor vehicle insurance portfolio

AbstractAdvanced analytics plays a vital role in enhancing various aspects of business operations within the insurance sector by providing valuable insights that drive informed decision-making, primarily through effective database utilization. However, open access databases in the insurance industry are exceedingly rare, as they are the basis of the business, encapsulating all the risk structure of the company. This makes it challenging for researchers and practitioners to access comprehensive insurance datasets for analysis and assessing new approaches. This paper introduces an extensive database specifically tailored for non-life motor insurance, containing 105,555 rows and encompassing a wide array of 30 variables. The dataset comprises important date-related information, such as effective date, date of birth of the insured, and renewal date, essential for policy management and risk assessment. Additionally, it includes relevant economic variables, such as premiums and claim costs, for assessments of products’ financial profitability. Moreover, the database features an array of risk-related variables, such as vehicle size, economic value, power, and weight, which significantly contribute to understanding risk dynamics. By leveraging the statistical analysis of this rich database, researchers could identify novel risk profiles, reveal variables that influence insured claims behaviour, and contribute to the advancement of educational and research initiatives in the dynamic fields of economics and actuarial sciences. The availability of this comprehensive database opens new opportunities for research and teaching and empowers insurance professionals to enhance their risk assessment and decision-making processes.