Asset Growth Research Articles

Investment aid as a growth and performance factor

Evaluation of state support, its fairness and eligibility of criteria are quite common topics frequently investigated and discussed. Slovakia and similar after-transition countries use more or less direct aid to businesses in order to attract the attention of foreign investors or to support domestic ones. Following study focuses on effects of such aid in Slovakia, uses median values of financial indicators for description of the sample of supported businesses, indexes for analysis of dynamics in results and sources and Pearson’s correlation coefficients for expressing common relations between the size of aid and generated effects. Analysis revealed that companies benefiting from aid experienced initial growth in assets, sales, and profitability but these effects later faded. The correlation between the size of aid and financial ratios was rather insignificant, only in the case of sales, share of personnel cost and depreciation on added value confirmed positive and statistically significant correlation. Regional distribution of aid proved that the least developed regions received significantly less financial contribution, and incentives are not fully motivational in order to transfer investments to such regions.

Pengaruh Profitabilitas, Likuiditas, Ukuran Perusahaan Dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan

The value of the company will be reflected through the company's shares. This study aims to test the profitability variables measured by return on assets (ROA), liquidity measured by current ratio (CR), company size measured by firm size (FS), and company growth measured by assets growth (AG) on the company's value. The sampling technique was purposive sampling. The data used are consumer non-cyclical companies listed on the IDX for the 2019-2023 period. Consumer non-cyclical companies are part of the manufacturing industry. Consumer non-cyclical companies are engaged in basic necessities, cigarettes and beauty. The data was processed using Eviews 12 and Microsoft Excel software. It is hoped that this research can provide considerations in decision making regarding variables that can increase company value. The conclusion of this study is that profitability has a significant positive effect on company value. Variable liquidity, company size and growth have no significant effect on company value.

The relationship between dividend policy and bank size: Evidence from Jordan

The growing need to comprehend how dividend policy affects bank size, particularly in emerging markets like Jordan, makes this study relevant. Bank size, often measured by total assets, is a key indicator of financial strength and stability. This study aims to examine the relationship between various measures of dividend policy – dividend per share, dividend yield, and dividend per share to earnings per share ratio – and bank size in Jordanian banks, using earnings per share as a control variable.The study employs ordinary least squares regression analysis to investigate the relationship between these variables over a sample of Jordanian banks. Three regression models were constructed to evaluate the impact of each dividend measure on bank size. The results indicate a significant positive relationship between dividend per share and bank size, and between the dividends per share to earnings per share ratio and bank size. The results show that approximately 43.9% of the variance in bank size is explained by the Dividends per share and Earnings per share, and a significant positive correlation is observed between total assets (bank size) and dividend per share, with a coefficient of 53%. Dividend yield, however, showed no significant impact on bank size.The results support that Jordanian banks with a sound dividend policy on dividend per share and its continuity with earnings exhibit higher asset growth. In this respect, bank growth appears to be highly dependent on a prudent dividend policy even from an emerging markets perspective.

MATHEMATICAL MODELING AND ANALYSIS OF BANK CAPITAL ADEQUACY DYNAMICS

Maintaining adequate capitalization is paramount for banks to ensure financial stability and regulatory compliance. This paper employs the Differential Transform Method (DTM) to solve a proposed dynamic model of bank capital adequacy, focusing on the relationship between a bank’s capital and its risk-weighted assets (RWAs). Three settings of RWAs growth, namely constant, linearly increasing, and exponentially increasing, are explored, with their respective parameter setups embedded. The effectiveness of the DTM is validated through comparisons of the obtained solutions with their corresponding exact solutions, demonstrating its ability to accurately simulate capital adequacy dynamics under varying RWAs growth patterns. The equilibrium analysis reveals that the steady-state level of capital adequacy is directly proportional to the bank’s assets, emphasizing the importance of asset growth for financial stability. Stability analysis indicates that a positive decay rate is crucial for resilience against perturbations. These findings underscore the application of mathematical modeling using DTM in aiding banks’ capital management strategies amidst evolving financial landscapes, ensuring they maintain adequate capital levels and respond effectively to economic shocks.

Pengaruh Ukuran Perusahaan, Pertumbuhan Aset, Keberwujudan Aset, Leverage, Dewan Direksi, dan Beban Penjualan Terhadap Kinerja Keuangan

This research aims to determine the results of the analysis of the influence of company size, asset growth, asset tangibility, leverage, board of directors, and sales expenses on the financial performance of companies operating in the food and beverage consumption industry sector that have been listed on the Indonesia Stock Exchange in the specified time period. starting from 2021-2023. By using a quantitative approach, this research succeeded in analyzing secondary data originating from 38 companies operating in the food and beverage consumption industry sector which have been declared to meet certain criteria. The results obtained from multiple linear regression analysis state that simultaneously, the six independent variables produce a significant influence on financial performance. Partially, company size and board of directors have a negative and significant influence on financial performance. Meanwhile, asset growth and asset tangibility have a positive and insignificant influence on financial performance. Leverage has an insignificant negative influence on financial performance. Meanwhile, sales expenses have a positive and significant influence on financial performance. The results obtained in this research reveal that operational strategies and resource management must be prioritized in order to achieve optimal financial performance in the consumption industry sector which operates in the food and beverage sector. It is hoped that carrying out this research can contribute to the literature regarding factors that can influence the financial performance of the food and beverage sector in Indonesia.

School Budget Management Training at SMP Katholik Don Bosco Semboro Tanggul – Jember

Objective: This study aims to enhance financial and administrative management at SMP Katholik Don Bosco Semboro Jember, an educational institution that has experienced significant growth in assets and scale. This growth necessitates the adoption of efficient and accountable financial practices to establish robust and credible organizational governance. Method: The method employed includes a structured approach of training sessions, continuous assistance, and activity evaluations. Each session is designed to address gaps in financial and administrative management, focusing on budget discipline, financial planning, and accurate record-keeping. A training module was also provided to aid in participants' understanding of the material. Results: The activities were well-received by the school's finance and administrative staff, resulting in improvements in budget planning, transparent financial reporting, and streamlined administrative processes. Adherence to applicable financial standards further enhanced accountability and efficiency in the school's financial management. Novelty: The novelty of this study lies in its comprehensive, practice-oriented training model tailored specifically for educational institutions. This model offers a replicable framework for similar foundations seeking to strengthen their financial governance. The outputs include a training module and an improved financial management framework adapted to the needs of SMP Katholik Don Bosco Semboro Jember, providing long-term benefits for the foundation’s financial accountability and organizational credibility.

Dampak Penggunaan Quick Response Code Indonesia Standard Bagi Kinerja UMKM Nasabah KUR PT. Pegadaian Cabang Wonosobo

This study aims to analyze the impact of using the Quick Response Code Indonesia Standard on the Performance of MSMEs that are customers of the KUR at PT. Pegadaian Wonosobo Branch. Utilizing a quantitative approach, this research collected data through survey using non-probability sampling techniques to obtain a representative sample of the population of MSME in Wonosobo and Banjarnegara Regency who use QRIS. The QRIS variable indicators include ease of use, understanding, satisfaction, and security, while the MSME performance indicators encompass profitability, number of customers, sales volume, and asset growth. Data analysis was conducted using SmartPLS 4 software to test the hypotheses and research model. The results indicate that the use of Quick Response Code Indonesia Standard has a positive and significant impact on improving MSME performance, with a coefficient value of 0.839, a t-statistic of 19.085 and p-value of 0.000. these findings suggest that the implementation of QRIS facilitates more efficient and secure transaction processes and contributes to increase profitability, customer number, sales and assets of MSMEs that are KUR customers.

Asset pricing in African frontier equity markets

This paper undertakes a horse races style comparison of the efficacy of a range of multifactor asset pricing models in explaining the cross section of stock returns in African securities markets. Valuation factors used include size, book-to-market value, momentum, operating profit, asset growth or investment, liquidity and investor protection. Using monthly returns of 375 blue chip firms from 8 African equity markets over 23 years, we undertake a horse-race style comparison of various classes of augmented CAPM models. We show that both the Fama & French (2015) five factor and Fama & French (2018) six factor framework yield the highest explanatory power. Analysis of costs of equity and optimized portfolio opportunity set simulations reveal substantial differences arising and borne by practitioners from the contrasting application of different asset pricing models underscoring the timely importance of our study.

Environmental, social, and governance investing and sustainability of pension funds: Evidence from the Organisation for Economic Cooperation and Development countries

Various stakeholders have pressed pension funds (PFs) to refocus their investment strategies on environmental, social and governance (ESG) principles; however, limited attention has been devoted to the impact of sustainable investing on PF assets. Using data from the Organisation for Economic Cooperation and Development (OECD) countries from 1999 to 2022 and using the generalised method of moment estimation, we find that the growth of pension assets in countries with high sustainability scores has slowed since the sustainable development goals were adopted. The impact is more pronounced in the European Union (EU) countries. This finding is noteworthy because EU countries are known for their leadership in sustainable development. Capital market returns are the primary channel through which sustainable investing contributes to reduced pension asset growth. Our findings provide policymakers with important information about the unintended costs of addressing climate risk through exclusionary PF policies. In OECD countries with low fertility rates and ageing populations, the cost exacerbates the sustainability challenges that PFs face.

Managerial ability and firm growth: intellectual capital components

PurposeThis study analyses the way various components of intellectual capital (IC), namely, human capital (HC), structural capital (SC), relational capital (RC) and innovation capital (INNC), act as mediators in the relationship between managerial ability (MA) and a firm’s ability to achieve growth.Design/methodology/approachThis study employs data envelopment analysis to quantify the MA of 825 Taiwanese listed electronics companies from 2017 to 2022. The proxies of firm growth are return on asset growth, operating income growth and total asset growth. This study then utilises a three-step mediation analysis methodology to examine the relationships between MA, IC and firm growth.FindingsFindings indicate that HC, SC, RC and INNC mediate the link between MA and firm growth. This suggests that competent managers can capitalise on the potential benefits of these investments to achieve firm growth.Practical implicationsCompetent managers can utilise different IC investments to grow the financial performance and strength of their businesses. Managers should continually scan, secure opportunities and adjust their investments in knowledge assets in accordance with the dynamic capabilities view. That is, managers, in general, and operations managers, in particular, can implement guidelines that prioritise IC investments in the future to expedite firms’ development.Originality/valueThis study extends the existing frameworks that study investment variables as mediators between MA and firm outcomes. Most particularly, this study adopts four components of IC for measurement. Moreover, firm performance is measured using dynamic growth indicators rather than static measures.

Are measures of corporate financial constraints universal? Evidence from Brazil

Financial constraints are a major impediment to economic growth. However, virtually all measures are calibrated with U.S. data and it is therefore not clear whether they work in other jurisdictions. Using data from Brazil during 1996–2022, we test how informative the KZ and SA indices are. We estimate panel regression models of corporate asset growth, market-to-book ratio, payout ratio and ROA on these indices. We find both indices exhibit the expected signs and are significantly related to these corporate outcomes. Finally, our models exhibit a better fit when we use data from the post-IFRS adoption period of Brazilian firms.

Factors afffecting on the growth assets of sharia life insurance companies in Indonesia

Purpose - The objective of this research is to present a summary and examination of the impact of investment returns, claims, and premiums on asset growth in Indonesian sharia life insurance firms from 2018 to 2022.Method - This study uses quantitative methods. The study's population consists of sharia life insurance companies that are registered with the OJK, and its sample consists of seven such companies that provide complete financial reports through 2022. Panel data analysis is the data analysis technique employed in this study, and the Common Effect Model (CEM) was selected using eviws 10.Result - This study provides evidence that premiums and claims have a detrimental effect on Indonesian Islamicic life insurance businesses' asset growth. Low premiums and high claims inhibit asset growth. On the other hand, investment returns have a positive effect, because Islamicic insurance companies gain opportunities for asset growth from investments in various sectors. Therefore, claim management and optimization of investment returns are very important to encourage the growth of company assets.Implication - These findings have implications from the results of this investigation, which show that a company is better and can be considered healthy if its assets are larger.Originality - This study is the first to employ profit-sharing finance as an intervening variable.

A BRIEF ANALYSIS OF THE BANKING INDUSTRY IN INDIA

This research paper explores the evolution and current dynamics of the Indian banking sector, focusing on the role of digital transformation and the performance of public, private, and foreign banks. Focusing mainly on the decadal data from 2013 to 2023, the study analyzes the growth of bank assets, the Credit-Deposit (C-D) ratio, and the penetration rate of online banking. The findings demonstrate that the banking sector in India has undergone significant changes, with technological advancements driving increased efficiency and customer reach. Public sector banks faced challenges due to non-performing assets (NPAs), while private sector banks showed robust asset growth, recovering quickly from the economic impact of the COVID-19 pandemic. Foreign banks also displayed resilience, with steady growth in assets. The research highlights the critical role of digital banking in modern banking services, contributing to financial inclusion and economic growth. KEY WORDS: public, private, foreign, assets, Credit-Deposit ratio, online banking

New findings on the asset growth anomaly: The joint effect of profitability and financing constraints

In previous studies, the asset growth anomaly is found to be driven by less profitable firms or firms with losses. However, we provide contrary evidence that the risk-adjusted return on the low-minus-high asset growth portfolio is statistically and economically significant among more profitable firms, when controlling for financing constraints. In fact, the asset growth effect is most pronounced in firms with both high profitability and high financing constraints. We present a theoretical framework demonstrating that these results are consistent with q-theory, supporting the hypothesis that the discount-rate channel underlies the asset growth effect. In our analysis, we employ the most up-to-date, machine-learning-based indices developed by Linn and Weagley (2023), to enhance accuracy of measuring financing constraints.

How Political Connections and Financial Constraints Affect Total Asset Growth Anomaly Before and During the Covid-19 Pandemic?

Our research addresses the gap in investigating how political connections and financial constraints affect asset growth anomalies before and during the Covid-19 pandemic. Our sample includes listed non-financial firms in the Vietnam stock market from 2008 to December 2020. We employ Fama and MacBeth regressions and portfolio sorting methodology to analyze a sample with 34,441 monthly observations, including 478 firms. Our findings indicate a negative relationship between asset growth and subsequent stock returns in all periods. While the asset growth anomaly existed in the Vietnam stock market before the pandemic, it disappeared during the pandemic. The average raw return difference between stocks in the highest and lowest asset growth terciles was −0.26% per month before the pandemic. Our robustness tests show that asset growth anomaly exists in firms with political connections during the pandemic. In addition, the asset growth anomaly only persists in larger firms before the pandemic. Our findings support agency and pecking order theory, behavior, and rational explanations. Finally, this study contributes practical implications for managers and individual investors to prevent adverse impacts of asset growth anomalies.

The Impact of Tax Incentives on the Growth of Small and Medium-Sized Enterprises: A Comparative Study Based on Industry

Tax incentive policies have been widely used as a crucial tool to promote the development of Small and Medium-sized Enterprises (SMEs), but their effectiveness varies across different industries and policy types. This study utilizes a comprehensive panel dataset from 2015 to 2023 to investigate the impact of Value-Added Tax (VAT) and income tax incentives on the growth of SMEs in China. Through fixed effects model analysis, we find that both VAT and income tax incentives significantly enhance SMEs' sales revenue and total asset growth. However, the magnitude of these effects differs substantially across industries, with high-tech and information technology service industries benefiting the most. Our industry comparison analysis reveals that the effectiveness of tax incentives is closely related to industry-specific characteristics, such as research and development (R&D) intensity and capital requirements. These findings provide key empirical evidence for optimizing SME tax policies and suggest that a more nuanced, industry-specific approach to tax incentives is needed. This study not only contributes to the literature on SME growth and tax policy effectiveness but also offers important insights for policymakers to refine SME support systems in the context of rapid technological change and economic transformation.

Assessing the impact of human activities on ecosystem asset dynamics in the Yellow River Basin from 2001 to 2020.

The intensification of human activities in the Yellow River Basin has significantly altered its ecosystems, challenging the sustainability of the region's ecosystem assets. This study constructs an ecosystem asset index for the period from 2001 to 2020, integrating it with human footprint maps to analyze the temporal and spatial dynamics of ecosystem assets and human activities within the basin, as well as their interrelationships. Our findings reveal significant improvement of ecosystem assets, mainly attributed to the conversion of farmland back into natural habitats, resulting in a 15,994km2 increase in ecological land use. Notably, 45.88% of the basin has experienced concurrent growth in both human activities and ecosystem assets, with ecosystem assets expanding at a faster rate (22.61%) than human activities (17.25%). Areas with high-quality ecosystem assets are expanding, in contrast to areas with intense human activities, which are facing increased fragmentation. Despite a global escalation in threats from human activities to ecosystem assets, the local threat level within the Yellow River Basin has slightly diminished, indicating a trend towards stabilization. Results highlight the critical importance of integrating spatial and quality considerations into restoration efforts to enhance the overall condition of ecosystem assets, especially under increasing human pressures. Our work assesses the impact of human activities on the dynamics of ecosystem assets in the Yellow River Basin from 2001 to 2020, offering valuable insights for quality development in the region, may provide a scientific basis for general watershed ecological protection and sustainable management in a region heavily influenced by human activity but on a path to recovery.

The Role of Commercial Bank Loans in Enhancing Financial Performance of Small and Medium-sized Enterprises in Morogoro Municipality, Tanzania

Purpose: This study investigates the role of commercial bank loans on the performance of small and medium-sized enterprises (SMEs) in Morogoro Municipality, Tanzania. It examines how commercial bank loans affect SME financial performance, providing a comprehensive understanding of how financial support from banks influences SME growth and sustainability. Design/Methodology/Approach: The study adopted a quantitative approach. It utilized cross-section data collected from a sample of 92 SMEs in Morogoro municipality. The collected data were descriptively analyzed using SPSS version 25. This analysis aimed to evaluate loan accessibility, determinants of loan choice, and the effect of commercial bank loans on key financial metrics such as profitability, cash flow management, and business growth. Findings: The study reveals that although many SMEs perceive commercial bank loans as easily accessible, others encounter significant barriers, including high interest rates and stringent collateral requirements. The study also reveals that commercial bank loans have mixed effects on SME performance. While they positively impact revenue generation and asset growth, their effects on profitability and business expansion are inconsistent. Originality/Value: This study contributes to the existing literature by providing nuanced insights into the role of commercial bank loans in SME performance within a Tanzanian context. It highlights the challenges SMEs face in accessing financial support and the varying impact of bank loans on their financial outcomes. The study findings are relevant for both policymakers and financial institutions aiming to improve loan accessibility and support SME development. Policy Implications: The study suggests several policy implications, including the need for banks to simplify loan application processes, offer more flexible loan products and address high interest rates that hinder SMEs access to finance. Additionally, it emphasizes the importance of building strong relationships between SMEs and financial institutions and leveraging financial advisory services to enhance loan utilization and overall business performance.

DETERMINAN VOLATILITAS HARGA SAHAM PADA INDEKS IDX30 (STUDI PADA TAHUN 2018-2021)

The purpose of this study is to determine the factors that influence the volatility of the IDX30 company’s stock prices. Independent variable used are Stock Trading Volume, dividend policy, leverage, firms size, and asset growth. This study using the report data from companies listed in IDX in the Index IDX30 between 2018-2021. Data analyzed using data panel regression analysis. The result from the analysis found out if variable dividend yield, firm size, and growth asset has no significant effects on Stock Price Volatility. Meanwhile, trading volume and leverage have a significant effect on stock price volatility.

The Contribution of Employees on The Cooperative Businesses

The role of cooperative is important for Indonesian Economic, especially for low and medium level of society incomes. This study investigates the contribution of employees on cooperative business. The study objects are secondary cooperatives where their members are primary cooperatives. The sample were selected based two criteria, as such (1) the cooperative businesses were active and (2) the cooperative performed members’ annual forum since last three years. Out of 22 secondary cooperatives in the Riau Province, there were six of them satisfied the criteria. The respondent of this study is cooperative boards and employees. The study conducted for six months, from October of 2022 to April of 2023. This study findings indicated that role cooperative boards on the cooperative business development were 71% which were more dominant compared to those of employees which was only 29%. The cooperatives’ businesses did not develop at all and nearly stagnant since last three. Almost all Indicators which were growth of assets, internal equity, business’ volume, and net profits, applied in this study were negative. Low role (contribution) of the employees on the cooperative business development, seen main cause of the bad cooperative financial performances. This study concluded that, in descriptive approach, there weas relation between employees’ contribution and cooperative businesses performances. For the cooperatives to develop in the future, the role/contribution of the employees need to be increased.