Financial Performance Research Articles

Maximizing Profitability and Occupancy: An Optimal Pricing Strategy for Airbnb Hosts Using Regression Techniques and Natural Language Processing

In the competitive landscape of Airbnb hosting, optimizing pricing strategies for properties is a complex challenge that requires revenue maximization with high occupancy rates. This research aimed to introduce a solution that leverages big data and machine learning techniques to help hosts improve their property’s market performance. Our primary goal was to introduce a solution that can augment property owners’ understanding of their property’s market value within their urban context, thereby optimizing both the utilization and profitability of their listings. We employed a multi-faceted approach with diverse models, including support vector regression, XGBoost, and neural networks, to analyze the influence of factors such as location, host attributes, and guest reviews on a listing’s financial performance. To further refine our predictive models, we integrated natural language processing techniques for in-depth listing review analysis, focusing on term frequency-inverse document frequency (TF-IDF), bag-of-words, and aspect-based sentiment analysis. Integrating such techniques allowed for in-depth listing review analysis, providing nuanced insights into guest preferences and satisfaction. Our findings demonstrated that AirBnB hosts can effectively utilize both state-of-the-art and traditional machine learning algorithms to better understand customer needs and preferences, more accurately assess their listings’ market value, and focus on the importance of dynamic pricing strategies. By adopting this data-driven approach, hosts can achieve a balance between maintaining competitive pricing and ensuring high occupancy rates. This method not only enhances revenue potential but also contributes to improved guest satisfaction and the growing field of data-driven decisions in the sharing economy, specially tailored to the challenges of short-term rentals.

Risk Governance Unlocks Islamic Banks’ Dual Performance Goals

This study investigates the moderating effect of risk governance structures on the relationship between risk management—covering insolvency, financing, and operational risks—and the financial and social performance of Islamic banks in Indonesia. Using dynamic panel data regression, the analysis draws on annual report data from 11 Islamic commercial banks over the period from 2012 to 2021. The findings show that certain risk governance structures, such as the size and independence of the audit committee, the expertise of its members, the frequency of meetings, and the quality of external audits, significantly enhance the effectiveness of risk management in improving both financial and social outcomes. Moreover, unique Islamic banking structures, such as the size of the Shariah Supervisory Board and the frequency of its meetings, further strengthen these effects. These results highlight the importance of robust governance in optimizing risk management and improving the overall performance of Islamic banks, with implications for regulatory bodies and Islamic financial institutions aiming to improve governance frameworks.

Financial constraints and sustainability in bioeconomy firms

AbstractIn the current scenario, sustainability has become vitally important. This paper focuses on bioeconomy as it links the economic systems and sustainable development, promoting innovative and environmentally friendly solutions. The bioeconomy firms need financial resources that play a critical role in their ordinary activities and in the activities that contribute to sustainability. The relationship between firms' ESG (environmental, social and governance) factors and their financing decisions has received little attention. Therefore, the objective of this article was to analyse the relationship between financial constraints and ESG performance focusing on bioeconomy firms. To carry out the analyses we have used 227 European bioeconomy firms developing three machine learning models. The main findings highlight the importance of the profitability (return on equity—ROE and return on assets—ROA) and the indebtedness in characterising firms' constraints, and the impact of non‐disclosure of ESG results. The study emphasises the economic importance of ESG practices in enhancing companies' financial conditions and access to capital, by using their corporate strategy and management: non‐disclosure of ESG information is related to an increase in funding constraints for listed bio companies. Thus, improving both economic and ESG performance can enhance access to capital, guiding business decisions.

The Impact of Accounting Practices on the Financial Performance of SMES in Somalia

The Impact of Accounting Practices on the Financial Performance of SMES in Somalia

Kinerja Keuangan Bank Umum Syariah di Indonesia Pasca Pandemi COVID-19

The aim of this research is to analyze the financial performance of sharia commercial banks (BUS) after the COVID-19 pandemic through the CAR, NPF, FDR and BOPO variables on the ROA of BUS registered with the OJK 2019-2024. The method used is quantitative with a research sample of 6 BUS determined through a purposive sampling technique. The secondary data analyzed was obtained through the official OJK website. The data is then analyzed through descriptive statistics, classical assumption tests, and hypothesis testing. The empirical findings show that all CAR, FDR and BOPO variables partially have no influence on ROA from BUS, except that NPF is proven to partially have a positive influence on ROA. Simultaneously, all independent variables have an influence on BUS ROA.

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.

Greenwashing and financial performance of firms: the moderating role of internal audit quality and digital technologies

Greenwashing and financial performance of firms: the moderating role of internal audit quality and digital technologies

Analysis of Effectiveness and Efficiency to Assess the Financial Performance of the District/City Government of West Java Province for the 2020-2022 Period

Analysis of Effectiveness and Efficiency to Assess the Financial Performance of the District/City Government of West Java Province for the 2020-2022 Period

Social Media Sentiment and Gender on Peer-To-Peer Lending Performance: Machine Learning Approaches

One innovation brought about by fintech is peer-to-peer lending. However, in recent years with rapid growth, unfortunately, there are still many negative sentiments about the peer-to-peer lending industry. Especially with the advancement of technology and the internet, all information about peer-to-peer lending is easily accessible through social media. The amount of negative information about peer-to-peer lending can influence opinions or sentiments towards the performance of peer-to-peer lending platforms and invite the public to comment on social media. Additionally, the gender factor of the information provider also affects the performance of the peer-to-peer market. Based on the explanation above, there has never been any previous research conducted in Indonesia, so this study will examine how the influence of social media information sentiment and the gender factor of the information provider affects peer-to-peer lending performance. The analysis method used is logistic regression, and the data used is obtained through machine learning using the Python programming language on Google Collab from social media opinions and the gender that provides opinions on social media. Meanwhile, the financial performance of peer-to-peer lending is taken from the annual performance report of the Financial Services Authority (OJK) by default. From the results of this study, it was found that the gender of the information provider affects the financial performance of peer-to-peer lending. However, simultaneously, social media sentiment and the gender of the information provider affect the financial performance of peer-to-peer lending.

Pelatihan Digital Accounting guna Peningkatan Kinerja Keuangan UMKM

This community service program aims to improve the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in the Bandulan sub-district of Malang city through digital accounting training. This training is designed to improve understanding of basic accounting concepts and the use of accounting software to facilitate the recording of financial transactions that previously used manual recording. The training activities were carried out online and offline and were attended by 10 MSME participants, either as owners or in the finance department. The implementation method used was lectures to convey basic accounting concepts for MSMEs and practice operating digital accounting applications. The results of monitoring and evaluation showed that the value of MSME partners was at least 75 points, which means that partners can absorb the knowledge that has been carried out by the service team well. The results of this service can improve financial performance and effective and efficient management decision-making.

Company Size, Managerial Ownership, Sustainability Report on Financial Performance with Operational Efficiency as an Intervening

The aim of this research is to examine the influence of company size, managerial ownership, and Sustainability Report on the financial performance of banking companies in Indonesia, with operational efficiency as an intervening variable. The population for this study comprises banking companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Data collection was conducted using purposive sampling, resulting in a sample of 13 companies and a total of 65 observations. The analysis technique employed is panel data regression. Microsoft Excel and E-views 13 were used for data processing. The research findings indicate that, partially, company size and managerial ownership have a positive effect on operational efficiency. However, the Sustainability Report does not significantly affect operational efficiency. Furthermore, company size and operational efficiency are empirically proven to have a positive impact on financial performance. Meanwhile, managerial ownership and Sustainability Report do not significantly influence financial performance. Company size and managerial ownership, mediated by operational efficiency, positively impact financial performance, while Sustainability Report which mediated by operational efficiency, does not significantly affect financial performance.

Influence of the Budget Control System on the Company's Financial Performance

A company certainly has goals to achieve. Various things can help in achieving company goals, one of which is the budget control system. The purpose of this study was to determine the effect of the budget control system on financial performance. The type of research used is quantitative. The data source used is secondary data obtained through the documentation method. The population in this study were companies in City X. Meanwhile, the sampling technique used in this study is a non-probability sampling technique, more precisely using saturated sampling technique, namely sampling determination technique with all population members used as samples. The sample obtained was 90 companies in City X. The data analysis techniques used are validity test, reliability test, normality test, and t test and determination coefficient test for hypothesis testing. The results obtained that the budget control system has a significant effect on the company's financial performance. The better the financial control system, the better the financial performance.

The Influence of Business Model Canvas on Financial Performance of Micro, Small, and Medium Enterprises (MSMEs)

This research aimed to analyze the influence of the nine components of Business Model Canvas (BMC) on financial performance of Micro, Small, and Medium Enterprises (MSMEs) in Kudus Regency. BMC components included Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure. In addition, the data was collected from 393 MSMEs selected through purposive sampling using a quantitative method. The analysis was performed using Structural Equation Modeling (SEM) and SmartPLS 3 software. The results showed that Cost Structure had a positive and significant impact on financial performance of MSMEs out of the nine BMC components. In this context, the efficiency in cost management significantly contributed to the improvement of financial performance. Other components such as Channels, Customer Relationships, Customer Segments, Key Activities, Key Partnerships, Key Resources, Revenue Streams, and Value Propositions did not have a significant impact on financial performance. Therefore, MSMEs in Kudus Regency were expected to optimize the implementation of the components to have a greater impact on financial performance. The practical implications were that MSMEs should focus more on efficient Cost Structure management as a primary strategy to enhance financial performance.

The Mediation Effect of Customer Satisfaction in the Relationship between CSR and Financial Performance: An Empirical Study in Large Companies in Serbia

Although corporate social responsibility (CSR) can be examined from the point of view of the fundamental philosophy of business and society, many companies focus solely on profit. The main goal of this research is the investigation of the relationship between CSR and organizational financial performance, and the role of customer satisfaction in the proposed relationship. To investigate the proposed relationships, PLS–SEM analysis was performed using the statistical software Smart PLS. The sample used for this study consists of 165 large companies that operate in the Republic of Serbia, each with more than 250 employees (large organizations). The obtained results showed that in companies in Serbia, there is a positive and statistically significant relationship between CSR and customer satisfaction and a positive but statistically insignificant relationship between CSR and financial performance. Regarding the mediating role of customer satisfaction in explaining the relationship between CSR and financial performance, a positive full mediation relationship was found. Theoretical and managerial implications are also provided.

La Sustentabilidad Empresarial, los informes de sustentabilidad, los índices sustentables y el desempeño financiero

Business sustainability is of great importance today because the context of economic crisis marked by the COVID 19 pandemic has awakened organizations, where the concept of the Triple Bottom Line is exceeded to escalate to the concept of Sustainability. The objective of this work was to outline the way in which sustainability has evolved in the business field, where indexes and reports have been established that allow sizing its impact on financial performance. A documentary investigation was carried out, developing topics such as, Bases of business sustainability, ISO Standards related to the adoption of sustainable practices in companies, Socially responsible investment indices, Evolution of sustainability reports and The relationship between business sustainability and financial performance. The findings allow us to know that sustainability has permeated companies which have adopted ISO standards, as well as sustainability reports, providing information about the sustainable practices they carry out, which allows investors to make informed decisions. It was also found that empirical research has managed to establish the existence of a positive relationship between Business Sustainability and Financial Performance, thus demonstrating the importance of adopting the former to achieve financial success.

From Barista to Bytes: How Starbucks Brewed a Digital Revolution

This study examines Starbucks' digital transformation journey, analyzing its strategies, implementation, and impact on performance and competitive positioning. Using a qualitative case study approach, the article explores how Starbucks leveraged an interconnected ecosystem of mobile applications, artificial intelligence, cloud computing, and data analytics to enhance customer engagement and optimize operations. The research investigates how these technologies synergistically contribute to Starbucks' "Digital Flywheel" framework, driving personalization, streamlining operations, and creating a seamless omnichannel experience. Drawing on company reports, academic literature, and industry analyses, this study provides a comprehensive view of Starbucks' digital initiatives and their collective impact. Findings reveal that Starbucks' success stems from a holistic approach to digital transformation, encompassing technological implementation, organizational restructuring, and cultural change. The study critically examines the effectiveness of the "Digital Flywheel" framework, comparing it with similar models in digital transformation literature. While highlighting the significant impact of these initiatives on Starbucks' financial performance, customer engagement, and operational efficiency, the research also explores challenges in data privacy, technology investment costs, and potential risks associated with digital transformation. The study provides a nuanced analysis of how Starbucks navigated these challenges, offering valuable insights for practitioners. This research contributes to the growing literature on digital transformation in retail, offering a balanced perspective on both the opportunities and challenges of digital innovation. By examining Starbucks' journey, the study critically assesses how traditional retailers can adapt to the digital age, while acknowledging the variability in outcomes across different sectors.

Board Size and Corporate Performance in the Industrial Property Sector in Malaysia

This research investigates the relationship between the size of the board of directors and the financial performance of publicly listed industrial property firms in Malaysia. The study examines secondary data from annual reports, financial statements, and corporate governance disclosures, focusing on key financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The study reveals significant correlations between board size and financial performance using correlation analysis and multiple regression. The findings provide valuable insights for regulators, investors, and business leaders, emphasizing the importance of refining corporate governance standards to ensure long-term financial success in Malaysia's industrial property sector.

Climate risks, financial performance and lending growth: Evidence from the banking industry

This study examines the impact of climate-related risks, specifically physical and transition risks, on bank performance and lending growth. Using panel data from 147 international banks across 37 countries from 2011 to 2020 and climate data from the Carbon Disclosure Project, our findings show that transition risks positively impact both performance and lending growth, whereas physical risks negatively impact performance and loan growth. Consequently, the inclusion of transition risks in banks' risk frameworks has allowed them to benefit from climate-related policy changes imposed by regulatory bodies, but this does not hold true for physical risks. Although banks recognize the severe impact that physical risks may have on their businesses, they still cannot protect their performance against extreme weather events, particularly because most of these events are characterised by a high degree of uncertainty.

Pengaruh Kompetensi Karyawan, Motivasi Kerja, dan Kepuasan Kerja Terhadap Kinerja Sistem Informasi Akuntansi di LPD

The development and progress of Village Credit Institutions (LPD) can be seen through various achievements such as financial performance and operational results. A good Village Credit Institution (LPD) is recognized from its financial reporting system and services. In reality, not all (LPD) are able to use AIS wisely and accurately. The purpose of this research is to understand the influence of employee competence, work motivation, and job satisfaction on the performance of the accounting information system. The population consists of LPDs in Ubud Regency, Bali with a representation of 96 people. The data collection techniques used in this study include quantitative. The studies that have been carried out prove that employee ability has a positive effect on AIS performance, work motivation has a positive effect on the use of AIS, and job satisfaction has a positive effect on the use of AIS. We found that it had a positive impact. The magnitude of the influence of independent variables on the use of AIS is 65.4%.

The role of non-economic goals in academic spin-offs

AbstractActing as a crucial link between academia and the business world, Academic Spin-Offs (ASOs) play a key role in translating innovative technologies from academic discoveries into commercial applications. Despite their potential for technological advancements, ASOs often struggle with challenges in financial performance and growth. Traditional explanations attribute these challenges to a lack of commercial resources and competencies. However, since ASOs often demonstrate prolonged survival, such explanations may not fully explain the paradox in ASOs’ outcomes. This paper offers a novel perspective, highlighting how non-economic goals, deeply ingrained in the academic context in which ASOs originate, shape their behavior and outcomes. These goals, related to the dimensions of control, identity, and emotions, go beyond financial gains, reflecting concerns that are specific to the academic environment. Integrating the organizational goals literature with insights from academic entrepreneurship research, we present a conceptual model describing the origins and nature of these goals and explain how they can help shedding light on some paradoxes in ASOs’ development, growth, and performance events. Our model bears significant implications for the academic entrepreneurship literature and related public policy.