Financial Performance Research Articles

The Impact of Environmental Information Disclosure in the “Carbon Trading Pilot” Project on the Financial Performance of Listed Enterprises in China

The Impact of Environmental Information Disclosure in the “Carbon Trading Pilot” Project on the Financial Performance of Listed Enterprises in China

Capital Structure and Corporate Governance: Shaping Company Value through Dividends

Background: The dynamic interplay between corporate financial strategies, particularly capital structure and dividend policies, significantly influences firm value in the manufacturing sector.Knowledge Gap: While previous research has explored the direct relationships between capital structure and firm value, less attention has been paid to the moderating effects of dividend policy, profitability, and Good Corporate Governance (GCG) in this context. Aims: This study aims to assess the moderating roles of dividend policy, profitability, and GCG on the relationship between capital structure and firm value. Results: The findings indicate that dividend policy, profitability, and GCG significantly moderate the relationship between capital structure and firm value, suggesting that firms must balance dividend distribution with their capital structure decisions. Novelty: This research contributes to the existing literature by integrating dividend policy and GCG into the analysis of capital structure's effect on firm value, addressing previously overlooked aspects. Implications: The study underscores the importance of prudent dividend policies and robust corporate governance in enhancing firm value, offering valuable insights for managers and investors aiming to optimize financial performance in the competitive food and beverage manufacturing sector. Highlights : Moderating Effects: Dividend policy, profitability, and GCG significantly moderate the relationship between capital structure and firm value. Financial Balance: Firms must balance dividend distribution with capital structure decisions to enhance overall value. Managerial Insights: The findings provide crucial insights for managers and investors to optimize financial performance in the food and beverage sector. Keywords: capital structure, dividend policy, firm value, profitability, Good Corporate Governance

Green fund investors and ESG performance: Evidence from China

Using the ESG scores from the Bloomberg Database and the manually filtered green fund investor data, we study the influence of green fund investors on the Chinese A-shares' ESG performance. As we have found, the holding of fund investors who pay attention to sustainable development can improve the firm's ESG performance, and this improvement is more pronounced in state-owned enterprises, heavily polluting industries, and after the green policy announcement. Our findings are robust after considering the reverse causality endogeneity concern and sample selection bias. In addition, the holdings of green fund investors favor the company's status as a green index constituent and its long-term financial performance. Further, the mechanism test reveals the influencing channel of this improvement and supports that it is long-term green fund investors themselves improving the firms' ESG performance and can improve a firm's ESG performance by attracting other long-term investors and new mutual fund investors, and increasing the level of media scrutiny pressure. Our paper contributes to figuring out the impact of institutional holding on ESG development and further points out the source of this influence.

Analysis of Financial Performances for Honeywell Based on Comparison with 3M, Emerson, and Johnson Controls

Contemporarily, the advanced techniques of Iot has been widely implemented. Hence, this paper presents a comparative financial analysis for relevant industry of Honeywell International Inc., 3M Company, Emerson Electric Co., and Johnson Controls Inc., focusing on key financial metrics such as TTM P/E ratio, NTM P/E ratio, revenue growth rate, EPS growth rate, PEG, GP/A, gross profit margin, and net profit margin. The analysis reveals that Honeywell exhibits strong financial health with high profitability, stable growth, and efficient asset utilization, making it a favorable investment option. Johnson Controls, despite lower margins, shows potential for high returns, particularly due to its lower PEG ratio. Conversely, 3M and Emerson face financial challenges, with 3M showing negative growth rates and Emerson displaying a higher PEG ratio, indicating overvaluation relative to earnings growth. The study highlights the importance of leveraging IoT, AI, and machine learning technologies to drive future growth and efficiency in industrial automation. By providing a nuanced understanding of the financial health and growth prospects of these companies, these results offer valuable insights for investors and stakeholders in the industrial automation sector.

Analysis of Financial Performances for Monster Beverage: Comparison with KO, PEP and KDP

The soft drink market is a growth market with diverse products including carbonated drinks, energy drinks, sports drinks, ready-to-drink tea, etc., in which demand shifts by consumer behaviours, market innovations, as well as macro environment policies. This study analyzes the financial performance of Monster Beverage Corporation (MNST) in comparison with Coca-Cola (KO), PepsiCo (PEP), and Keurig Dr Pepper (KDP) by calculating financial metrics and making comparison analysis, and the aim is to find one stock which is worth value investing. Consequently, MNST is worth investing in on account of its outstanding financial metrics including its lower PEG ratio, higher revenue growth rate, and EPS growth rate, meanwhile, MNST stands out with its external factors such as innovation in flavour. The research fills the vacancy of value investing, especially for comparison analysis in the specific four soft drink companies, i.e., MNST, KO, PEP, and KDP. Though the research needs more predicting models, these results still can help investors make decisions in value investing.

DOES SUSTAINABILITY DISCLOSURE HAVE A MODERATING ROLE IN EXAMINING FIRM VALUE IN BANKING INDUSTRY?

This study seeks to experimentally assess the impact of financial performance on the firm value of the banking subsector and examine sustainability disclosure as a moderating variable. The study focused on banking subsector companies listed on the IDX in 2020-2022. Multiple linear regression was used to test cross-sectional data processed with Eviews 12. The test results demonstrate that profitability has a considerable beneficial impact on firm value. Meanwhile, leverage minimizes firm value because the primary banking business process involves consumer loans and receivables. Therefore, investors pay little attention to company debt. Sustainability disclosure cannot balance the relationship between financial success and firm value. The sustainability disclosures need to meet investors' expectations. Stakeholders may have differing perspectives on the relevance and influence of sustainability data on profitability and firm value.

The equity road ahead for financing non-national immunization program vaccines in China: challenges and opportunities from a qualitative study

BackgroundIn China, national immunization program (NIP) vaccines benefit from robust financial support and have achieved high coverage. Non-NIP vaccines rely on fragmented funding sources, mostly out-of-pocket payment, and face sub-optimal and inequitable coverage. Sustainable financing needs to be secured for addressing equity in non-NIP vaccine delivery. However, discussion and understanding of this issue remain limited. This study aims to analyze the current situation, comprehensively identify challenges and opportunities in non-NIP vaccine financing, and offer suggestions to enhance vaccine uptake and improve public health.MethodsBetween July and December 2023, we conducted a series of semi-structured, in-person interviews with 55 stakeholders from the Health Bureau, Centers for Disease Control and Prevention, Medical Insurance Bureau, and Finance Bureau across five provinces in China. Participants were selected through stratified sampling, and the interviews mainly included their involvement in non-NIP vaccine financing, challenges faced, and strategies for improvement to enhance financing performance. Informed consent was obtained, and thematic analysis was used to analyze the data.ResultsNon-NIP vaccine financing sources include out-of-pocket payments, government fiscal, health insurance and other external funds. These four channels differ in vaccine types covered, costs, and target populations, each with unique challenges and opportunities. High out-of-pocket costs remain a significant barrier to equitable vaccine uptake, while market competition has lowered the vaccine price and improved accessibility. Local fiscal support for free vaccination programs faces challenges related to sustainability and regional disparity, though governmental commitment to vaccination is growing. Nevertheless, centralized procurement organized by the government has lowered the price and reduced the financial burden. Despite legal restrictions on using basic health insurance for vaccinations and limited commercial insurance options, private medical savings accounts and mutual-aid mechanisms present new opportunities. Although the scope and impact of external support are limited, it has successfully increased awareness and social attention to vaccination.ConclusionRelying on individual payments as the main financing channel for non-NIP vaccines is unsustainable and inadequate for ensuring universal vaccine access. A concerted and synergistic approach is essential to ensure sufficient, sustainable resources and enhance public financial management to improve equity in the non-NIP vaccines.

Pengendalian Manajemen Sebagai Upaya Mengoptimalkan Kinerja Keuangan

Background – The debt phenomenon is very crucial in the company. Many entrepreneurs go bankrupt or fail to pay due to debts owned by the company so that debt has a big pressure on generating company profits. Aim – This research is to analyze the influence of corporate governance on financial performance and external pressure as mediating variables. Design / methodology / approach – The cumulative method used to describe relationships in research and the analysis tool is Eviews.10 software. The sample used was 720 observation data from 144 financial sector companies for five years (2018-2022). Findings – This shows that the board has a significant negative impact on external pressure. Independent directors and commissioners have a significant positive influence on external pressure. The board of directors has a significant positive influence on financial performance. Board independence has no effect on financial performance. Board and external pressures have a material negative impact on financial performance. External pressure indirectly has a negative and significant influence on financial performance among independent directors and commissioners. We also provide active and authoritative mediation between the board of directors and financial performance. Conclusion – This needs to be taken into consideration that external pressure has a strong impact on independent directors and the board of commissioners so that the resulting performance will decrease, while the board of directors will have a strong impact on improving performance because the board of directors is able to control the pressure that arises from stakeholders. Research implication – For manufacturing companies, they will be able to see which ones can provide an increase in company profits so that they will be able to maximize corporate governance in managing the company's finances. Limitations – This research only uses one sector, namely manufacturing companies. This research needs to be expanded to different sectors.

Corporate governance and financial performance: the case of English NHS hospitals

PurposeHospitals’ corporate governance (CG) mechanisms oversee critical operational issues and evaluate the outcomes. This paper investigates the impact of CG (i.e. board size, board independence, board expertise, board meetings, board gender diversity, CEO gender, and academic directors) on the financial performance of English National Health Service (NHS) hospitals and separately by hospital type (i.e. trusts and foundation trusts).Design/methodology/approachThe sample includes 128 NHS hospitals. The data were collected through document analysis and archival work from annual hospital reports from 2014 to 2018.FindingsThe findings indicate that board expertise, board meetings, board diversity, CEO gender, and academic directors significantly and negatively affect NHS hospitals’ financial performance. For NHS trusts, the results reveal that board expertise, board diversity, and CEO gender have a significant negative effect, while for NHS foundation trusts, only CEO gender has a significant negative impact.Originality/valueOverall, this study contributes to the literature on the healthcare system. It holds significant practical implications for hospital governance and has important implications for theories.

Navigating success: Exploring how entrepreneurial traits and institutional factors mediate enterprise characteristics and financial performance

ABSTRACT This study examined the dynamics between enterprise characteristics (EC) and the financial performance (FP) of 623 micro-enterprises in five highly urbanized cities across Mindanao, Philippines. Using partial least squares structural equation modeling, it also examines the mediating effects of entrepreneurial traits and perceived institutional factors after controlling for business age. The results revealed that EC significantly and positively influences FP. This suggests that micro-enterprises benefit from their enabling characteristics, such as business model, employees, and organizational culture. Entrepreneurial traits, including business acumen, grit, and environmental and social orientation, partially mediate the EC–FP relationship. Perceived institutional factors, including culture, norms, and enabling trading climate, played significant roles as partial mediators between EC and FP. Policy makers can use these insights to design programs that foster supportive institutional environments. Meanwhile, entrepreneurs should optimize key traits, leverage their enterprise-specific strengths, and adapt their business models to local culture and norms to enhance financial performance.

Research on the Measurement of Gold Green Total Factor Productivity in the Yangtze River Economic Belt under the Background of Green Finance

With the continuous growth of the economy, the contradiction between finance and the environment has become increasingly prominent, and green finance has attracted much attention due to its sustainable development function. This study integrates green financial efficiency into green total factor productivity based on the two-stage super efficiency unexpected SBM model, and constructs the financial green total factor productivity of the Yangtze River Economic Belt from 2013 to 2021. The convergence model is used to verify the convergence of productivity development. The research results indicate that, in terms of time dimension, the efficiency of green finance in the Yangtze River Economic Belt is relatively stable, the level of financial ecological performance first decreases and then increases, and the financial feedback ecological performance remains at a high level for a long time. The overall trend of financial green total factors is increasing, and financial green technology innovation is an important driving factor for the increase; In terms of convergence testing, no significant alpha convergence was found in the upper, middle, and lower reaches of the Yangtze River Economic Belt, and the regional differences did not significantly decrease. However, there was overall beta convergence, indicating a "catch-up effect" from low productivity provinces to high productivity provinces.

Digital health startups: growth financing and valuation drivers that signal strength for investors

PurposeThe study investigates the impact of various factors on the number of active investors in digital health startups. Through nine hypotheses, we examine the influence of metrics such as patents, online presence, financial aspects and company valuation on investor interest. The results reveal positive associations between these metrics and investor numbers, highlighting their role in signaling strength and attracting investment. This research enhances the understanding of investor valuation in digital health startups, emphasizing the importance of credible signals for building trust and securing funding. However, we acknowledge limitations in data analysis methods and suggest future research to explore industry signals, longitudinal trends and failed startups for comprehensive insights.Design/methodology/approachThis study delves into the design methodology and approach, aiming to fill gaps in understanding investor roles in valuing digital health ventures. We focus on deciphering factors driving valuations for these startups to secure growth financing. Using signaling theory, we investigate how entrepreneurs communicate their latent strengths to bridge information gaps, aiding investment decisions. We analyze a sample of 482 healthcare startups from the Pitchbook database using Poisson regression in SPSS.FindingsThis research sheds light on the factors driving investor interest in digital health startups. Despite the critical role of entrepreneurs in patient care innovations, the relationship between investor characteristics and funding for digital health technologies still needs exploration. We examine factors influencing investor valuation in healthcare startups and identify patents, social followers and financial disclosures as pivotal elements shaping investor interest. The findings show that all factors for active investors are significant for all variables except similar unique visitors.Originality/valueThese results significantly enhance our understanding of investor decision-making in digital health startups. They confirm the importance of various signals, like patent activity, online presence and financial performance, in attracting investor attention. We utilize unique data sources, offering insights into investors' behavior across different funding stages. In conclusion, these findings underscore investors' crucial role in the growth and funding of healthcare tech startups, emphasizing the need for robust signals to attract investment.

Sustainable Supply Chain Management for Business Competitiveness: A Systematic Literature Review

The goal of this systematic literature review (SLR) is to present a thorough examination of the connection between corporate competitiveness and sustainable supply chain management (SSCM). Based on 74 publications from reliable sources, including Science Direct, JSTOR, IEEE Xplore, Google Scholar, Scopus, and Web of Science, this review combines data to highlight important concepts, conceptual frameworks, and research findings. According to the review, supply chain strategies that incorporate sustainability principles can improve social responsibility, environmental performance, and economic viability—all of which support long-term competitiveness. The analysis reveals that among the key success factors within SSC that are related to social and environmental impacts, operational resilience and continuity, financial performance, technological innovation, technological innovation, differentiation, regulatory compliance and industry standards, customer satisfaction and loyalty, and resource efficiency and cost savings. Transparency and traceability, market and reputation benefits, risk management techniques, and circular economy ideas are some of the best ways that SSC practices boost company competitiveness. However, some of the biggest obstacles to supply chain management (SSCM) that undermine firm competitiveness are high beginning costs, complexity, supply chain interruptions, and market constraints. The review expands on our knowledge of the ways in which SSCM boosts corporate competitiveness. Discussions are held regarding conclusions, suggestions for additional study, and theoretical and practical ramifications.

Enhancing MSMEs Financial Resilience: Integrating Working Capital Management and Sustainability Reporting

This study examines the influence of sustainability reporting (SR) comprehension and working capital management (WCM) on the financial performance of small and medium-sized manufacturing enterprises (MSMEs). Furthermore, the study emphasizes WCM's impact on financial performance, which is linked to understanding SR among MSMEs actors. The study incorporates control variables in the model (e.g., age, size, ownership type, organizational culture, market orientation, entrepreneurial orientation). The sample is selected using quota sampling of MSMEs in the manufacturing sector in Palembang, Indonesia, from October to November 2023. Primary data collection is distributed online through questionnaires. The results show that understanding SR and WCM positively affect the financial performance of MSMEs. The findings deliver several contributions. Firstly, the implementation of SR of MSMEs – in the long term – would benefit the government in supporting sustainable development goals (SDGs). Secondly, it bridges the literature gap regarding the implementation of SR and WCM to examine the performance of MSMEs.

ESG systems and financial performance in industries with significant environmental impact: a comprehensive analysis

Research background and significanceAs China's economy continues its rapid expansion, the issue of environmental degradation has escalated, particularly within industries with significant environmental impact, such as steel, chemical, pharmaceutical sectors. These sectors are confronted with profound environmental and social responsibility challenges. The development of robust Environmental, Social, and Governance (ESG) systems has therefore become essential for improving environmental performance, meeting social responsibilities, and optimizing corporate governance structures. This study investigates the impact of ESG system implementation on the financial performance of enterprises within these environmentally impactful industries, offering a scientific foundation and practical guidance for corporate leaders and policymakers to facilitate green transformation and sustainable development.Methods and dataThis research integrates empirical analysis with case studies, employing a dataset of 2,376 observations from 792 listed companies within industries with significant environmental impact, spanning the period from 2019 to 2021. The data, sourced from the Wind database, were analyzed using multiple regression techniques. The findings reveal a significant positive relationship between overall ESG scores and corporate performance, measured by Return on Equity (ROE) and Return on Assets (ROA). All three ESG dimensions—environmental (E), social (S), and governance (G)—exhibit positive impacts on corporate performance. Furthermore, factors such as company size and growth rate are positively correlated with performance, whereas leverage ratio is negatively correlated. To further substantiate the empirical findings, a case study of Hunan Valin Steel Co., Ltd. was conducted.Results and conclusionsThe findings of this study demonstrate that the implementation of ESG systems substantially enhances the financial performance of enterprises within industries characterized by significant environmental impacts. Specifically, investments in environmental protection led to greater resource utilization efficiency, social responsibility initiatives foster enhanced employee productivity and customer loyalty, and strong corporate governance improves management structures and decision-making processes. The case study of Hunan Valin Steel Co., Ltd. reinforces these results, illustrating that a comprehensive ESG framework not only helps such enterprises achieve their environmental and social responsibility objectives but also markedly improves their financial outcomes. This research provides robust empirical evidence and actionable management recommendations for ESG system implementation in environmentally impactful industries, along with scientific support for informed policymaking.

Mitigating managerial short-sightedness in green technology innovation and corporate financial performance: The role of “National Team” shareholding

The potential for green technology innovation (GTI) to enhance corporate financial performance continues to be the core motivation for sustained investment by companies. However, the micro-mechanisms to enhancing financial performance have not yet received sufficient attention in the academic literature. Internal corporate governance and corporate management constitute crucial factors that affect the process in which GTI contributes to corporate technological progress, and to the enhancement of corporate financial performance. Specifically, this paper will examine the role of “National Team” shareholding in corporate governance in mitigating managerial short-sightedness in GTI. A two-way fixed effects panel OLS model will be applied for individual-time on 618 listed companies with consistent R&D activities from 2015 to 2022. The results show that corporate GTI promotes corporate financial performance via technological progress. Through the conditional process analysis, it shows that the interaction of CEO narcissism and the “National Team” shareholding proportion together moderate the relationship between corporate GTI and technological progress, with the “National Team” shareholding proportion contributing to the impact of technological progress on corporate financial performance. From a corporate governance point of view, the presence of institutional investors helps mitigate the negative impact of managerial short-sightedness in technological progress.

Does Company Size Moderation the Influence of Financial Performance and Good Corporate Governance Toward Islamic Social Reporting Disclosure?

This study aims to determine the influence of profitability, leverage, size of board commissioners, and size of Sharia supervisory board on Islamic social reporting disclosure with company size as a moderation variable in Sharia commercial banks for the 2017-2022 period. The sample was determined using the purposive sampling method. The analysis method used was moderated regression analysis (MRA). The tools used are SPSS. The results of the study partially show that profitability (ROE), leverage (DER), and size of board commissions (UDK) do not affect Islamic social reporting (ISR) disclosure.Meanwhile, the size of the Sharia Supervisory Board (UDPS) affects the disclosure of Islamic social reporting (ISR). Company Size (SIZE) is not able to moderate the influence of the variables of profitability (ROE), leverage (DER), and Size of board commissioners (UDK) on the variables of Islamic social reporting (ISR). Meanwhile, company size (SIZE) can moderate the influence of the Size of Sharia Board Commissioners (UDPS) on Islamic social reporting (ISR). Large banks will need more workers, including the Sharia Supervisory Board, so they can follow Sharia principles in carrying out their activities; the goal is to gain public trust to conduct transactions at Islamic commercial banks.

Developing a 3-statement operating and financial performance model for truck and rail infrastructure business: A case study of a model with automated retirement/reinvestment schedule

Developing a 3-statement operating and financial performance model for truck and rail infrastructure business: A case study of a model with automated retirement/reinvestment schedule

Sustainability Reporting and Financial Performance: Examine the Correlation between Sustainability Disclosures Financial Performance in Publicly Traded Companies

Sustainability reporting has increasingly gained prominence in academia and practice over the past few decades. With growing stakeholder expectations for companies to report on environmental, social, and governance issues, sustainability reporting allows companies to communicate non-financial impacts. While sustainability reporting aims to enhance accountability and transparency, questions remain regarding its influence on corporate financial performance. Some studies have found a positive correlation between sustainability reporting and financial metrics like profitability and share price, arguing reporting leads to more efficient resource management and risk mitigation. However, other research has found no significant relationship or negative impact, noting that reporting requirements incur costs that may outweigh benefits. This comprehensive review aims to provide an in-depth analysis of the existing literature on the correlation between sustainability disclosures and the financial performance of publicly traded companies. Relevant studies from various regions and sectors published between 1990 and 2023 will be reviewed. The methodologies applied, measurement variables, sample sizes, and time frames considered will be evaluated to understand the scope and limitations of each study. Key findings related to the direction and strength of the reported relationship between the two parameters will be summarized and compared. Moderating factors such as company size, industry, cultural context, and disclosure type will also be examined to determine their influence on research outcomes. The review will conclude by outlining existing knowledge gaps, inconsistencies in current empirical evidence, and areas that require further research.

Evaluating Financial Performance Based On Environmental Performance, Environmental Costs, and Environmental Disclosure

This study examines the relationship between environmental performance, environmental costs, and environmental disclosures with financial performance among companies in the basic materials and consumer non-cyclical sectors listed on the Indonesia Stock Exchange from 2021-2023. Utilizing a quantitative approach with multiple linear regression analysis, the study reveals that environmental disclosure positively impacts financial performance, while environmental performance and environmental costs show no significant effect. The findings indicate that transparent sustainability reporting enhances stakeholder confidence and company reputation, contributing to improved financial outcomes. The results align with legitimacy theory, emphasizing the importance of aligning corporate activities with societal norms to achieve long-term financial stability. Despite the increasing global emphasis on sustainability, the study underscores the need for greater public awareness and investment in environmental initiatives to realize their full financial benefits.