Financial Success Research Articles

The Impact of Performance Appraisal and Training and Development on The Financial Performance of Small and Medium-Sized Enterprises (SMEs)

This study aims to measure the influence of human resource management (HRM) practices on the financial performance of small and medium enterprises (SMEs). It notably focuses on analyzing the effects of training and development programs and performance appraisal methodologies. In order to carry out this study, a quantitative methodology was employed, which entailed the use of self-administered questionnaires. A linear regression analysis was conducted on data obtained from 130 small and medium-sized enterprises (SMEs) to examine, assess, and improve the relationship between performance appraisal, training and development, and the financial performance of SMEs. The results indicate a clear and direct association between training and development, performance appraisal systems, and the financial success of small and medium-sized enterprises (SMEs). The findings highlight the critical importance of HRM practices as strategic investments rather than just administrative tasks. These findings provide useful insights for scholars and practitioners, offering a framework for implementing training and development and performance evaluation procedures to achieve financial success in small and medium-sized enterprises (SMEs), not just in Kosovo but also in similar global contexts.

IMPACT OF RECEIVABLES MANAGEMENT ON PROFITABILITY WITH REFERENCE TO TIFSCO PVT LTD

Effective receivables management is a cornerstone of financial health for any business. Accounts receivable represent money owed by customers for goods or services delivered, and efficiently collecting these outstanding payments directly impacts a company's profitability. This research project delves into the intricate relationship between receivables management strategies and a firm's bottom line. We aim to explore how practices like credit policies, collection procedures, and credit analysis techniques influence profitability metrics. The core of the investigation lies in understanding how efficiently companies convert credit sales into actual cash flow. A central focus will be on analyzing the impact of receivables management on key profitability ratios, such as return on assets and operating profit margin. We will explore how factors like the speed of collections, measured by days sales outstanding (DSO), affect a company's ability to generate profits. The research will also consider the potential trade-off between stricter credit policies that might reduce bad debts but also limit sales volume. By examining real-world examples from various industries, the project aims to establish a clear understanding of how sound receivables management practices contribute to a company's overall financial success. The findings of this research can provide valuable insights for businesses to optimize their credit and collection strategies, ultimately leading to improved profitability and a more sustainable financial position. During economic slumps, customers might face financial difficulties, leading to delays or defaults on payments, impacting a company's cash flow and profitability. Granting credit to customers with a high risk of default can lead to bad debts and erode profitability. Lengthy and cumbersome collection procedures can delay the inflow of cash and hinder a company's ability to reinvest in growth opportunities. Poor communication with customers regarding payment terms and overdue invoices can lead to misunderstandings and delays in collections

The Effect of Organizational Structure on Employee Creativity: A Study of Lafarge Africa Plc, Calabar

The main objective of the study was to conduct an analysis of Lafarge Africa Plc, located in Calabar, with a specific emphasis on employee creativity and organizational structure. The study's specific objectives were to examine the relationship between centralization and employee creativity at Lafarge Africa Plc, Calabar, the number of management levels present, and the effects of formalization on creativity at that organization. The descriptive research method was utilized for this investigation. The subjects of this study comprised 410 employees of Lafarge Africa Plc in Calabar, consisting of both managers and regular personnel. The data for this study was collected from primary sources through the utilization of a structured questionnaire. We conducted an ordinary least square regression analysis using SPSS 27.0 in order to derive significant insights from the data. The regression results, with ?1=0.750, p=0.000, and t=1.186, indicated that there is a significant and positive relationship between the number of organizational strata and employee creativity. As demonstrated by the model results (?1=0.355, p=0.000, t=4.288), there is a significant relationship between the degree of formalization and employee creativity. The regression analysis reveals that employee creativity is considerably and positively impacted by centralization (?1=0.722, p=0.000, t=11.562). Establishing a corporate environment that encourages and acknowledges innovative thinking is imperative for the company to achieve global dominance, substantial financial success, and development.

Venture Capital and Financial Performance of E-Commerce-Driven Firms in Kenya

Purpose: Businesses that rely on e-commerce for growth frequently find that their ability to obtain sufficient capital is critical to their success. Funding from venture capital firms is essential in this context. Due to insufficient capital, e-commerce-driven businesses in Kenya have continuously underperformed financially. Numerous of these businesses, such as Rupu, OLX Kenya, and ePay, encountered financial difficulties and eventually lost the ability to continue operating. This study's main objectives were to evaluate the impact of capital management support, financing options, and cost of capital on the financial performance of Kenyan e-commerce businesses. Additionally, the study sought to fully evaluate the moderating impact of regulatory structure on venture capital funding and the financial performance of Kenyan e-commerce-driven firms. The trade-off, stakeholder, financial liberalization, and agency theories all lend credence to this research. The research philosophy of positivism, which emphasizes the use of empirical data to evaluate theories and hypotheses, was applied to perform this study.
 Methodology: The study examined a population of 45 e-commerce-driven businesses that obtained venture capital financing between 2017 and 2022 using a descriptive cross-sectional survey research approach. A stratified simple random sampling design technique was employed to choose 45 e-commerce-driven businesses as a sample. Surveys were distributed to collect primary data. Important stakeholders, including investors, executives, and founders, were among the participants in the study. Descriptive statistics were employed to summarize the data, such as measures of central tendency (particularly the mean), variability (expressed by the standard deviation), and frequency distributions. Regression analysis, an inferential statistic, was also employed in the study to investigate the relationship between venture capital funding and financial success. The gathered data were coded before entering into the Statistical Package for Social Science (SPSS) program to make the analysis process easier. The analysis's final results were provided as tables.
 Findings: The findings showed that the cost of capital, financing strategies, and capital management support significantly impact Kenyan e-commerce enterprises' financial performance. The aggregate score of 3.73 in cost of capital indicated consensus among participants on the impact of venture capital on e-commerce companies' financial performance. Participants perceived a significant correlation, with a standard deviation of 1.15 reflecting varying opinions. Most agree that lower venture capital costs lead to better financial success, influencing organizations' financial decisions significantly. The study concluded that venture capital funding has a considerable impact on the financial performance of e-commerce-driven enterprises in Kenya. The report advised management to thoroughly understand the total cost of capital related to venture capital funding.
 Unique Contribution to Theory, Practice and Policy: The study on venture capital and financial performance of e-commerce-driven firms in Kenya has made significant contributions to theory, practice, and policy. It has enhanced theoretical understanding by examining the relationship between venture capital investments and the financial performance of e-commerce firms, providing insights into the dynamics of these markets. In practice, the study has offered valuable guidance to e-commerce entrepreneurs and investors by identifying factors that influence financial performance and informing strategic decision-making. Additionally, the findings have implications for policy formulation, as they highlight the importance of fostering an enabling environment for venture capital investments in the e-commerce sector to spur economic growth and innovation in Kenya.

Assessing the drivers and capabilities for faster product launch: a scale for time‐to‐market reduction in start‐ups

The acceleration of new product development (NPD) and market introduction is essential for companies to maintain competitiveness, enhance customer base, and achieve financial success. While the existing literature addresses time‐to‐market (TTM) reduction factors in a scattered manner, focusing on aspects like supplier and customer involvement, leadership, and learning, there is a noticeable gap in construct development and measurement validation for TTM reduction, particularly in start‐up contexts. Addressing this gap, our research introduces and validates a comprehensive, hierarchical scale designed to measure both the drivers and capabilities associated with TTM reduction in start‐ups. This innovative scale broadens the scope of traditional constructs, incorporating emerging dimensions such as transformational leadership, experiential learning, agile methodologies, and dynamic marketing strategies. We used our dataset and structural equation modeling (SEM) to validate the proposed scale, comparing the effect of drivers and capabilities on TTM reduction and the role of companies' age on this relationship. This approach confirms the scale's reliability and highlights its versatility. This research holds significant implications for enhancing NPD endeavors in start‐up environments. Introducing a methodologically robust scale equips managers with a powerful tool for setting realistic goals, monitoring progress, and assessing capabilities and contextual factors to refine NPD processes. Furthermore, the scale serves as a benchmarking instrument for start‐ups, aiding them in attracting investments and achieving a competitive advantage. Our study, therefore, stands as an essential contribution to the strategic management of NPD in the dynamic and evolving landscape of start‐ups.

A Reappraisal on Link between Goodwill and Financial Performance in Sport Industry of Jalandhar

This study presents a comprehensive reconsideration of the subtle relationship between goodwill and financial performance in the sports industry. Traditionally, goodwill has been linked to intangible assets like brand reputation and consumer loyalty, which are difficult to measure. The study explores how goodwill, which is continuously reflected through brand reputation, fan loyalty, functions as a critical asset in improving financial outcomes for sports companies. By evaluating multiple revenue streams like sponsorships, retail sales, broadcast rights, and match day revenues, the study illustrates the mutually beneficial for a goodwill foundation and improved financial success. Furthermore, the study explores the moderating impacts of external factors such as market dynamics, competitive success, and digital media presence, providing a more nuanced picture of how goodwill contributes to long-term financial growth in the sports industry. It investigates how intangible assets like goodwill can be translated into actual financial rewards such as larger sponsorships, bigger ticket sales, and higher television ratings. The study's findings are especially pertinent for sports business owners and industry experts who want to manage the intricacies of managing a team or event in an increasingly competitive market. This reappraisal intends to broaden the debate on sports management and provide concrete lessons for practitioners seeking to harness goodwill as a strategic asset for financial success. Key words: Goodwill, Financial Performance, Sports Industry, Brand Reputation, Fan Loyalty, Sponsorships.

Analysis of the social indicators of companies in the brazilian electric power sector: a panel data approach

The present research delves into the realm of Internal Social Indicators (ISI), aiming to scrutinize and ascertain the influence of independent variables on ISI behavior within the Brazilian electric sector. The study period spans from 2013 to 2016. To achieve the research objective, an in-depth analysis of secondary data sourced from the websites of selected companies was conducted. Specifically, sustainability reports, with a focus on social reports (BS), were examined. The findings of the proposed model reveal that companies exhibiting higher investment in ISI tend to enjoy better asset profitability and maintain lower levels of indebtedness. The practical applicability of this research lies in its relevance to human resource management. It aids in identifying companies that allocate significant resources to ISI, thereby facilitating the assessment of their relationship with economic-financial indicators—whether positive or negative. Such insights pinpoint companies that excel in this aspect, offering a distinctive factor for evaluation by actuaries, employees, and stakeholders. By shedding light on the correlation between investment in ISI and financial performance, this research equips decision-makers with valuable information for strategic planning and resource allocation. Moreover, it underscores the importance of social responsibility within the corporate landscape, emphasizing the role of companies in contributing positively to society while achieving financial success. In essence, this study serves as a bridge between social impact and financial outcomes, advocating for a holistic approach to corporate management that prioritizes both profitability and social welfare. Its implications extend beyond the Brazilian electric sector, resonating with businesses worldwide that seek to balance economic goals with ethical and social considerations.

Corporate Governance Mechanisms and Financial Performance: An Analysis of Listed Companies in Brazil

Purpose: The aim of the study was to investigate the corporate governance mechanisms and financial performance: an analysis of listed companies in Brazil. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The analysis of listed companies in Brazil found that strong corporate governance practices are associated with improved financial performance. Factors such as board independence, transparency, and shareholder rights positively influence profitability, liquidity, and market valuation. This highlights the vital role of effective corporate governance mechanisms in fostering investor confidence and driving sustainable financial success in Brazil. Unique Contribution to Theory, Practice and Policy: Agency theory, stakeholder theory & resource dependency theory may be used to anchor future studies on the corporate governance mechanisms and financial performance: an analysis of listed companies in Brazil. By emphasizing the pivotal role of board independence, transparency, and shareholder engagement, the study provides tangible guidance on governance practices that can be effectively implemented to bolster financial performance. Policymakers tasked with overseeing the corporate governance landscape in Brazil

The Balanced Scorecard Approach to measuring Cooperative Performance: Implications for Multipurpose Cooperatives in the Philippines

The Balanced Scorecard (BSC) has been studied a lot as a tool for measuring performance in corporate organizations around the world, but it hasn't been studied much in cooperatives. The goal of this research was to ascertain how multipurpose cooperatives perform using the BSC. A total of eighteen cooperatives were purposively chosen as samples for this research, where members, employees, and managers served as the respondents. The study utilized a descriptive research design whereby the researcher collected and analyzed financial statements for three years, made use of surveys to elicit responses from respondents, and conducted document analysis to further enhance the result. Results showed that the cooperatives’ financial performance obtained a "fair performance" rating using the Cooperative Development Authority's (CDA) performance standards. Members/customers received very satisfactory performance, while internal business processes and learning and growth received excellent results. This investigation revealed that despite financial performance issues, cooperatives met member expectations, provided outstanding business processes, and provided staff learning and development, contradicting Kaplan and Norton's assertion that optimal performance in all three areas leads to financial success. Weak areas were also identified along with the four BSC perspectives that need intervention, and strategies were devised to enhance and improve performance utilizing the BSC framework. It is recommended that cooperatives adopt strategies in terms of improving their performance, particularly in the identified weak areas, and meeting their objectives and goals as set by CDA. Future researchers may consider discovering cooperatives' performance in other social aspects.

An Empirical Study of the Relationship Between Digital Transformation, Corporate Social Responsibility and Financial Performance

The article investigates the impact of corporate social responsibility (CSR) and digital transformation (DT) on corporate financial performance (CFP) indicators, as well as the moderating effect of DT on the relationship between CSR and CFP indicators. The study was conducted using Stata 17.0 software based on data (5709 observations) on 558 A-share listed manufacturing companies of the Shanghai and Shenzhen Stock for 2012-2021 (excluding financial and insurance companies, ST and ST* companies, as well as companies with incomplete data). The independent variable used in the modelling process is the CSR rating report of the Hexun website, indicators of which are reconstructed by dividing them into strategic CSR (shareholder responsibility, employee responsibility, customer responsibility) and altruistic CSR (environmental responsibility and social contribution). The dependent variable is 2 CFP indicators: return on equity (ROE) and TOBIN’s Q. The DT index is used as a moderating variable, for the calculation of which the texts of companies’ annual reports were segmented using the Python programming language and standardised data on the frequency of keywords in 4 dimensions: digital technology application, Internet business model, intelligent manufacturing and contemporary information system; the weights for each dimension index was determined using the entropy approach. The control variables are corporate assets (Size), financial leverage level (Lev), current ratio (Cur), firm growth (Gro), shareholding ratio of the largest shareholder (First) and technological innovation (RD) of companies. The study also considered the year and industry factors. To study the moderating effect of DT on the relationship between CSR and CFP indicators of companies in different situations, the grouping variables chosen were the ownership type (state-owned and non-state-owned companies), the enterprise lifecycle (cash flow portfolio method was used to identify its stages) and the degree of market competition (Herfindahl-Hirschman Index). The modelling is based on a fixed-effects regression model. The study found that both CSR and DT have a positive impact on CFP, and that DT moderates the relationship between CSR and CFP, indicating that integrating digital technologies with sustainable development strategies can enhance financial benefits. The study also highlights the importance of different dimensions of corporate social responsibility. A high level of digital transformation strengthens the promotion effect of strategic social responsibility on current and future financial success of companies. Meanwhile, the promotion effect of altruistic social responsibility on current financial performance is significant. Heterogeneity analysis shows that the positive moderating effect of digital transformation on the relationship between corporate social responsibility and financial performance mainly applies to private firms, firms in the mature stage, and firms with low market competition. The article offers practical advice for businesses seeking to use digital transformation to maximise economic and social value.

An Empirical Study on Perception and Behaviour of Investors towards Equity Market Investments

Perception and Behaviour of Investors' towards the performance of equity indices in the stock market were meticulously examined in this study. By delving into their perceptions, we aim to provide valuable insights to help investors make informed decisions that lead to financial success. As part of a research study, the required data has been gathered from 415 individuals who invest in the equity market. The study aimed to investigate how investors' decision-making behavior, whether rational or irrational, affects their perceptions of movements in equity stock indices. The data was analyzed using the Structural Equation Model approach. The study revealed that the model had an excellent fit to the suggested values, indicating that investors use both rational and irrational approaches in their investment decision-making process. Although they collect complete financial information, they also use shortcuts to make investment decisions.

Technology Integration in Predicting Financial Performance: Big Data, Intellectual Capital, and Board Diversity

The relationship between technological integration, diversity on the board, and intellectual capital management and how these factors affect the financial performance of Indonesian start-ups is examined in this study. Structural Equation Modeling (SEM) using Partial Least Squares (PLS) approach is used in this work to evaluate the intricate interactions among these critical parameters using a diverse sample of 195 start-ups. A thorough knowledge of the dynamics that influence startups' financial success is facilitated by the use of descriptive statistics, measurement model assessment, and structural model analysis. The findings indicate that there are strong positive correlations between financial performance and board diversity, intellectual capital, and technological integration. Furthermore, the mechanisms involved are clarified by mediation effects. The model explains half of the variance in financial performance (R2 = 0.504) and demonstrates strong predictive relevance (Q2 = 0.354). For practitioners, politicians, and investors navigating Indonesia's competitive start-up entrepreneurship scene, the findings provide insightful information.

Enhancing SME Success: Exploring the Nexus of Marketing Capability, Product Innovation, and Financial Performance

Abstract: This study investigates the relationships between marketing capability, product innovation, and financial performance in small and medium-sized enterprises (SMEs). Data were collected from a diverse sample of 50 SMEs operating across various industry sectors in Mataram City, West Nusa Tenggara. Participants were selected using stratified sampling to ensure representation across different demographic groups. The measurement scales for marketing capability, product innovation, and financial performance were adapted from established instruments in the literature and further validated through a pilot test. The results reveal significant positive relationships between marketing capability and both product innovation and financial performance. However, the hypothesized relationship between product innovation and financial performance was not supported. These findings underscore the importance of investing in and enhancing marketing capabilities as a strategic imperative for SMEs seeking to drive innovation and achieve sustainable financial success.

The Role of Emotional Intelligence in Making Successful Financial Decisions

Emotional intelligence (EI) as the ability for self-analysis, self-motivation, and self-regulation is necessary in the process of financial activity. It ensures informed decision-making, considering consequences and perspectives. The aim is to identify the influence of emotional intelligence on the effectiveness of decision-making by financiers. The following tests were used: EQ (Emotional/Empathy Quotient) test, Melbourne Decision Making Questionnaire, the Rathus Assertiveness Schedule, the Schubert Risk Propensity Test. Statistical processing of the results included the use of descriptive analysis, ANOVA, and regression analysis. The study found that financial workers with a high level of emotional intelligence have a pronounced “vigilance” decision-making style (F=113.4, p≤0.01), high assertiveness (F=103.3, p≤0.01), and risk propensity (F=137.3, p≤0.01). It was proved that emotional intelligence explains the “vigilance” decision-making style (β=0.943, R²=0.572), risk propensity (β=0.896, R²=0.424) and explains 48% of assertiveness (β=0.945, R²=0.483). It was confirmed that emotional intelligence is a predictor of successful financial decisions, it determines high assertiveness, vigilance, and risk propensity. Such results are useful for the development of training and retraining programmes for financiers. At the same time, including the development of assertiveness and risk propensity in professional and corporate training in parallel with the development of EI will give greater chances for the success of financial decisions. The obtained results are important for the financial and economic sphere, as they prove the effectiveness of EI in decision-making. This contributes to the improvement of the system of training competitive financiers and allows to expand aspects of the study of financial success.

Data-Driven Insights from 10,000 Reviews: Fostering Sustainability through Rapid Adaptation to Guest Feedback

The present research aims to explore how customer satisfaction and discontent may influence the financial success of luxury hotels by analyzing more than 10,000 reviews from the Radisson Blu Hotel in Bucharest and financial data spanning a decade. Text mining and sentiment analysis were used in order to pinpoint crucial elements that could impact visitor experience and the way in which they might correlate with hotel revenues in the long run. Research has linked positive visitor evaluations to revenue growth, while negative feedback does not consistently lead to financial declines, suggesting that premium brands may be resilient to mild online criticism. Our research examines how customer feedback sentiment and business income are interconnected throughout time, emphasizing the significance of handling guest contentment in order to reduce resource spending and create a sustainable feedback loop between guests and businesses. Our analysis challenges the idea that negative evaluations always have a detrimental impact on financial performance and highlights the importance of long-term positive feedback in the hospitality sector. This study enhances comprehension of the influence of customer feedback on the luxury hotel business, providing valuable insights for service industry experts on utilizing reviews in the future in order to gain strategic benefits and also develop their businesses in a sustainable way.

The power of purpose: how material sustainability and stakeholder orientation drive financial success

PurposeConsidering the standards developed by the Sustainability Accounting Standards Board (SASB), this study aims to examine whether the link between material sustainability and financial performance depends on the extent to which the company is oriented toward stakeholders.Design/methodology/approachTo test the predictions, 13,942 firm-year observations from 43 different countries are used, covering the period from 2010 to 2019. Using a hand-mapping approach to match the indicators suggested by the SASB with those of the ASSET4, the authors realize that there are 170 material sustainability indicators among 466 indicators of the ASSET4. The authors use three different methods to verify if the materiality matters, including the alphas obtained from the Fama and French factor models, comparing the average abnormal returns of the portfolios and the bootstrapped Cramer technique.FindingsThe findings show that companies investing in material sustainability activities perform better than those investing in immaterial activities. Also, consistent with the theoretical foundations, the authors find that the effect of investing in material sustainability activities is more pronounced in stakeholder-oriented countries than that in shareholder-oriented countries. The results are robust to a battery of sensitivity tests.Research limitations/implicationsOwing to COVID-19 in late 2019, data from 2020 to 2022 have not been used to obtain reliable results.Practical implicationsThe results obtained in the current research provide valuable guidance for investors to make investments considering the degree of materiality of sustainability activities in different industries. It also helps managers to increase the company’s financial performance, make efficient decisions related to investment in sustainability activities and find investment strategies on the material sustainability issues in their industries.Social implicationsThis study provides a clearer understanding of investment in sustainability activities in different industries by separating material and immaterial sustainability activities in stakeholder and shareholder-oriented countries, and the results obtained can change the perspective of investors and company managers regarding investing in such activities in different countries. Investing in more materiality sustainability activities than the immateriality dimension can be new opportunities for companies to achieve predetermined goals, help retain and attract business partners or be a source of innovation for new product lines or services. Internal morale and employee engagement may increase while increasing productivity and firm performance. This discussion opens the way for future research.Originality/valueThis study provides insight into the effect of investing in material and immaterial sustainability activities in different industries on the company’s performance in shareholder and stakeholder-oriented countries.

Consumer Behaviour Moderates the Effect of Green and Social Network Marketing and Strategies on Textile Business Performance in Faisalabad, Pakistan

The purpose of the current study is to look into how marketing strategies, social network marketing, and green marketing affect the textile industry's performance in Faisalabad, Pakistan. Examining how consumer behaviour influences the relationships between green marketing, social network marketing, marketing strategies, and the business performance of the textile industry in Faisalabad, Pakistan. This study used quantitative methods, collecting data using self-structured questionnaires and SPSS analysis. The findings demonstrated a positive correlation between marketing strategies, social network marketing, and green marketing and the textile industry's financial success in Faisalabad, Pakistan. The results also showed that the relationship between the business performance of the textile sector in Faisalabad, Pakistan, and social network marketing, green marketing, and marketing strategies was positively regulated by customer behaviour. Future research on this topic will be beneficial, as will the regulatory bodies drafting regulations and implementing business performance-related policies.

Examining the bonus mechanisms’ role in real earnings management dynamics in an Indonesian manufacturing company

Real Earnings Management (REM) and financial success may have different relationships depending on how managers act. Bonus mechanisms are a significant factor that influences management behavior. The study seeks to examine the impact of bonus systems on the correlation between financial performance and REM practices in manufacturing companies in Indonesia. Moderated Regression Analysis (MRA) is employed to evaluate the influence of bonus mechanisms in moderating the association of financial performance on REM. The technique of purposive sampling was used to pick the sample. The study utilized data from manufacturing firms listed on the Indonesian Stock Exchange from 2017 to 2021, including a total of 400 observed data points. The research findings demonstrate that sales growth is the sole factor that significantly influences REM in manufacturing organizations, as indicated by a p-value below 10%. Other financial performance factors, on the other hand, with p-values for each variable above 10%, have not been shown to have a significant impact on REM. These factors include ROA, leverage, operating cash flow, and cash. The findings also demonstrate that, with a p-value for each variable above 10%, the bonus mechanism is a variable that modifies the effect of all financial performance variables on REM.

Exploring the Role of Accounting Practices and Financial Analysis: A Case Study in Perfect Zone Buraidah

This compelling case study delves into the critical role of accounting techniques and financial analysis in business management. The study explores the obstacles faced and the tactics used to overcome them by drawing on the firsthand experiences of an accountant at a startup business. The study emphasizes the importance of precise inventory management, budgeting and forecasting, financial monitoring, and sales performance analysis in attaining long-term growth and profitability. The findings emphasize the significance of combining accounting theories and practices in order to make informed decisions and achieve financial success. The study continues by underlining the importance of continuous financial planning and adaption in order to support long-term corporate growth.

The Influence of Sustainability Disclosure on Financial Performance: A Study of Indonesian Firms

This study examines the correlation between the disclosure of sustainability measures and the financial success of companies in Indonesia. The increasing importance of sustainability disclosure, which includes environmental, social, and governance factors, for firms to demonstrate their dedication to sustainable practices, has generated significant debate on its influence on financial results. This study investigates the impact of sustainability disclosures on the financial performance of companies in Indonesia, thus adding to the existing body of knowledge on this topic. The study utilizes a mixed-method approach, incorporating qualitative content analysis of data extracted from annual reports, as well as quantitative analysis derived from financial statements of publicly traded corporations. The sample consists of companies from three major industry sectors, each demonstrating different levels of quality in disclosing their sustainability practices. Accounting-based indicators like return on assets (ROA) and return on equity (ROE) are used to evaluate financial performance. The findings demonstrate a direct and favorable relationship between the caliber of sustainability disclosures and financial performance, specifically in sectors that are highly responsive to environmental concerns. Companies that have more comprehensive and transparent sustainability reporting processes in these industries generally achieve better performance compared to those with less comprehensive reporting. These conclusions have substantial ramifications for firms, investors, and policymakers. Enhancing sustainability disclosure can enhance a company’s financial performance and act as a significant factor for investment choices, providing information about a company’s dedication to sustainability and related risks. Policymakers can utilize these observations to support the implementation of improved sustainability reporting regulations, thereby fostering sustainable economic growth in Indonesia. Ultimately, the research confirms that Indonesian companies who provide detailed and reliable information on their sustainability efforts have a positive correlation with their financial performance. This emphasizes the significance of improving these practices to achieve both economic prosperity and sustainable development objectives.