Higher Financial Performance Research Articles

The Effect of Islamic Corporate Governance Disclosure in Financial Performance Me-diation on Islamic Social Reporting

The social role of Islamic banks shows inconsistencies both at home and abroad; this is the basis for con-ducting this research to re-explain the Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) relationship, models. This study aims to examine the indirect effect of ICG disclosure on ISR disclo-sure with financial performance as a mediating variable in Islamic Banking in Indonesia. This study uses secondary data with annual report data sources and financial statements on Islamic banking in Indonesia. They are testing this study using stepwise regression analysis with data for the annual reporting period of 2016 through 2019. The result that financial performance mediates the effect of disclosure of ICG on ISR; this shows that proper management of Islamic banks will produce high financial performance so that they can carry out their social roles well too. The contribution of this study is to develop a new model of the part of financial performance mediating the effect of ICG disclosure on ISR so that it is beneficial for the development of science.

Identification of Influential Factors and Improvement of Hotel Online User-Generated Scores: A Prescriptive Analytics Approach

ABSTRACT The information obtained from customers’ feedback can help hotel managers improve their provided services in a targeted manner according to customers’ expectations. Besides, other customers consider online hotel scores an efficient tool for quickly evaluating the quality of hotels’ services. Therefore, a higher online score indicates customer satisfaction and would lead to more bookings, price acceptance, and higher financial performance. In this article, we extracted the shortcomings related to hotel attributes utilizing a novel methodology that comprises machine learning algorithms, text mining, and a combination of customers’ comments and scores. Then we examined the quantitative effect of fixing these problems on hotels’ online scores. Furthermore, considering the origin of the problems, the cost required for fixing them, and the quantitative effect of solving them on improving the hotels’ online scores, we provided some prescriptions for hotel managers as the last phase of business analytics. This model and its resulting prescriptions can be used to increase hotels’ online scores significantly by improving service quality at the lowest cost. Finally, to describe the most important attributes, we used The Nordic European School of thought and classified them based on the technical and functional dimensions of Grönroos’ service quality model.

PENGARUH STRUKTUR MODAL DAN KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR GO PUBLIK

This study aims to determine the Influence of Capital Structure and Financial Performance on Company Values in Go Public Manufacturing Companies (Case Study of Food and Beverage Sector Listed on the Indonesia Stock Exchange for the 2014-2017 Period). This research is quantitative research. The population in this study were 18 companies. While the sample in this study were 10 companies. Data collection techniques arecarried out by non-participant observation techniques. The variables in this study are capital structure and financial performance as independent variables, and firm value as the dependent variable. The data used in this study are secondary data, literature and web searching. The data analysis technique used is panel data analysis. Based on the results of this study, it was found that there was no significant effect between capital structure on firm value. The results of the analysis show a significance of 0.918 or greater than 0.05 (p = 0.918> 0.05), which means that H0 is accepted. The effect of the capital structure on the value of the company is because the capital structure is not an investor's focus in stock purchase decisions at the company. While financial performance has a significant influence on company value. The results of the analysis show a significant amount of 0.003 or smaller than 0.05 (p = 0.003> 0.05), which means H1 is accepted. High financial performance will provide an indication of good corporate prospects so that it can trigger investors to participate in increasing stock demand. Increasing demand for shares will cause increased company value.

Environmental performance, political connection, and financial performance: evidence from global oil and gas companies.

Based on the natural resource-based view theory, firms with improved environmental performance will have higher financial performance. Conversely, the neo-classical economic theory argues that improved environmental performance leads to lower financial performance. We argue that these contradicting findings are due to the political connection and treat it as the moderating variable to strengthen the positive effect of environmental performance on financial performance. Using carbon emission, spill volume, and total environmental fines as the environmental performance proxy, we only find that spill volume has a positive relationship with oil and gas companies' financial performance, supporting the natural resource-based view theory. Our results also show the positive effect of political connection on financial performance, supporting the helping-hand theory. Meanwhile, the moderating effect of political connection is only significant in weakening the negative impact of spill volume on financial performance. Practically, government regulation that bans the involvement of politicians in the boards of the oil and gas companies may allow firms to internalize the cost of the environmental damage, and could improve the environmental performance of the firms.

Sustainable behaviour of B Corps fashion companies during Covid-19: A quantitative economic analysis

This paper investigates whether or not Italian Certified B Corps® in the fashion industry achieved levels of corporate social responsibility (CSR) and financial performance that are comparable to listed companies in the same industry during the Covid-19 pandemic. After a review of the literature concerning B Corps, CSR and the circular economy, as well as some coverage of pandemic impacts, a quantitative approach is used to analyze the data empirically. Based on the data available, the study incorporated the entire population of Italian listed companies and B Corps in the fashion industry. Moreover, this study confirms the relationship between CSR and financial performance. The availability of sustainability documents other than the required social responsibility report does not directly affect a company's profitability, but they are necessary for the long term. The results also confirm the positive relationship between sustainability certification and higher financial performance, as the most sustainable companies were also the most profitable. Certified B Corps® declare their willingness to adopt circular economic principles to the same extent as non-certified listed companies. Moreover, the results show that consumers mainly remember the information disclosed on a company's homepage; therefore, managers should publish more there. However, they should not underestimate the importance of their sustainability report because it is an effective social communication tool, especially in the long term. Finally, obtaining the B Corp certification will allow companies to inform stakeholders of their social responsibility and achieve higher financial results.

Comparing the Financial Performance of Islamic Banks in 10 Countries: New Evidence using Entropy and WASPAS Methods

This research aims to determine the most crucial financial performance indicators for Islamic banks and to rank Islamic countries according to their financial performance. In line with the purpose of the research, entropy and Weighted Aggregated Sum Product Assessment (WASPAS) methods were used to examine 10 selected Islamic countries (Turkey, Malaysia, Bangladesh, Indonesia, Jordan, Kuwait, Nigeria, Oman, Pakistan, and the UAE) using annual data for the 2013–2020 period. The results of the entropy method showed that the financial performance of Islamic banking is mostly affected by the net non-performing loans ratio and profitability ratios. The results of the WASPAS method indicated that the country with the highest financial performance was Bangladesh. It was followed by Jordan, Turkey, Pakistan, the United Arab Emirates (UAE), Malaysia, Indonesia, Kuwait, and Nigeria, respectively. The lowest financial performance was that of Oman. A low non-performing loan ratio leads to higher financial performance and is of greater importance than profitability ratios, as expected. This study offers a way for the managers of Islamic banks to enhance their financial performance by determining effective financial performance indicators. It also reveals the differences among the selected Islamic countries in terms of financial ratios. The research represents a preliminary study that provides evidence for a selected country group using entropy and WASPAS methods.

Does It Pay to be Green? A Study of the Global Microfinance Industry

This article examines whether it pays to be green in the microfinance industry. Environmental issues are important for all businesses around the world, and thus many microfinance institutions (MFIs) started embracing them as an additional objective alongside their traditional social and financial objectives. This article is among the first to test the relationships between environmental performance and both the financial and social performance of MFIs. Using a sample of 234 rated MFIs in 58 countries, we find that being green is associated with higher social and financial performance. Specifically, MFIs with environmental policies have higher financial performance (i.e., higher returns on assets, lower operating costs, and lower cost of capital) and higher social performance (i.e., a higher social rating score) than those without environmental policies. Overall, the results suggest that it pays to be green in the microfinance industry and this should motivate MFIs considering being green to do so.

COMPARATIVE ANALYSIS OF THE FINANCIAL PERFORMANCE OF 5 MAJOR FOOTBALL CLUBS IN UEFA RANKING

With the industrialization of football, not only the sporting success of the clubs, but also their financial performance has become subjects of discussion. The aim of this study is to compare the performance of five major football clubs in the UEFA by comparing their liquidity, leverage and profitability ratios for the 2015-2019 period. The data is obtained from the clubs' websites and annual reports. It is concluded that Manchester City FC has the highest financial performance while Juventus FC has the lowest. It is also determined that liquidity and short-term debt/equity ratios are the most important performance indicators for football clubs.

TÜRK ANA METAL SANAYİ ŞİRKETLERİNİN COVID-19 PANDEMİSİ DÖNEMİNDEKİ FİNANSAL PERFORMANSLARININ ENTROPİ – MARCOS BÜTÜNLEŞİK YAKLAŞIMI İLE DEĞERLENDİRİLMESİ

Dünya Sağlık Örgütü’nün (WHO) Mart 2020’de pandemi olarak ilan ettiği COVID-19 salgınının yol açtığı küresel üretim daralması, birçok ülkenin ekonomisini durma noktasına getirmiştir. Türk imalat sektörünün lokomotifi konumunda olan ana metal sanayisi de pandemiden en çok etkilenen sektörlerin başında gelmektedir. Sektördeki şirketlerin finansal performansları, yöneticilerin ve sermaye piyasası yatırımcılarının karar verme süreçlerini ciddi bir şekilde etkilemektedir. Bu çalışmada Borsa İstanbul Metal Ana Endeksinde (XMANA) yer alan 20 şirketin pandemi dönemi finansal performansı analiz edilmiştir. Pandemi dönemi (2020/06 – 2021/06) analiz sonuçları bir önceki bir yıllık dönem ile karşılaştırılmış ve önemli değişimlere rastlanmıştır. Performans ölçümü amacı ile bilanço ve gelir tablolarından derlenmiş; likidite, kârlılık, maliyet, değer, büyüme, sermaye yapısı ve faaliyet oranlarından oluşan 15 farklı kriter belirlenmiştir. Çalışmada çok kriterli karar verme tekniklerinden Entropi Yöntemi kriterlerin önem ağırlıklarının hesaplanmasında; 2020 yılında geliştirilmiş yeni bir yöntem olan MARCOS Yöntemi ise şirketlerin belirlenen kriterlere göre sıralanmasında kullanılmıştır. Çalışma sonuçlarına göre, pandemi dönemi finansal performansı en yüksek firma olan ÇEMTAŞ Çelik Makina Sanayi ve Ticaret A.Ş. (CEMTS)’yi; sırasıyla Kardemir Karabük Demir Çelik Sanayi ve Ticaret A.Ş. (KRDMD) ve AYES Çelik Hasır ve Çit Sanayi A.Ş. (AYES) takip etmiştir.

Management of export activities of a manufacturing enterprise

Introduction. Export activity has always been and remains the degree of economic development of the enterprise and a component of prosperity of the state. Productivity was influenced by various factors. From their features, duration, risk depend on the final results, in particular: production and sales, cost, profitability, sustainability and profit. The purpose of the paper is to study the theoretical aspects of the export activities of Ukrainian enterprises. Results. Entering new markets is one of the priorities of many companies. In modern economic conditions, the number of foreign economic entities that enter into agreements with foreign organizations is constantly growing. For effective operation, the company must constantly improve its product, ensure that it meets international standards, etc. Timely strategy and organization of activities allows to achieve even higher financial performance. The first step in the path of export activity is to establish the purpose of the operation. The second stage is the analysis of the conditions of operation of partner companies. The third stage is the assessment of the external environment. The fourth stage is the choice of markets. The fifth stage is to find opportunities to enter the market. The sixth stage of the agreement on the sale of goods. The seventh stage of determining the price of goods and conditions of delivery.In addition to its strategy, effective export management is also influenced by the size of the firm, the complexity of products, and the specifics of the counterparty market. At modern manufacturing plants, export management is managed mainly through the "global" department, which belongs to the marketing and sales sector. Conclusion. Since foreign economic activity begins with the process of planning to enter a new market, it is from this time that it must be properly planned, organized and controlled for the greatest result. In modern conditions, activities in international markets require innovative approaches and consist not only of theoretical aspects, but also of practical skills.

Organizational Culture and High Medicaid Nursing Homes Financial Performance

<strong>Background and Objectives:</strong> This paper investigates the relationship between organizational culture and financial performance in under-resourced nursing homes (85% or higher Medicaid residents). <strong>Research Design and Methods: </strong>We tested whether the type of organizational culture (clan, adhocracy, market, and hierarchical) was associated with higher financial performance, measured by the operating margin. Survey data of 341 nursing home administrators were collected in 2017–2018 and merged with secondary datasets with facility and market characteristics. We used multiple regression analysis to test our hypotheses. <strong>Results:</strong> We found that a market culture was positively associated with higher operating margin. On the other hand, having a clan, hierarchical, or non-dominant culture was associated with lower financial performance, compared to a market culture. <strong>Discussion and Implications: </strong>Ensuring the financial viability of high-Medicaid nursing homes is important since they provide care to low-income residents and a high proportion of racial/ethnic minorities. Our findings suggest that having a market culture with an external orientation may be associated with better financial performance among these nursing homes.

Research on corporate financial performance prediction based on self‐organizing and convolutional neural networks

AbstractEconomic risks faced by manufacturing enterprises are gradually increasing and risk reduction whilst maintaining high financial performance has become key to their survival and development of enterprises. Enterprise performance affects not only enterprise development but also does the interests of investors and creditors. Therefore, a well‐performing model for financial performance prediction is particularly important. In this paper, we combine unsupervised and supervised learning, fusing self‐organizing mapping neural networks and convolutional neural networks, and apply deep learning to financial analysis to construct a new financial performance prediction model, called SNN‐CNN. This paper uses crawler technology to obtain financial data of listed manufacturing enterprises and classifies their financial performance into five levels. It finds that enterprises with high financial performance tend to have balanced financial indicators, strong corporate vitality and stable development of various capabilities, while enterprises with low financial performance have poor repayment and profitability, significant risks in corporate operation and limited growth and development. Compared with traditional risk prediction models, the SOM‐CNN model has a higher accuracy rate, up to 95.69%.

The Impact of Corporate Social Responsibilities (CSR), Entrepreneurship, and Financial Factors on the Financial Performance of the Banks in ASEAN Countries

All the organizations are striving for the high financial performance that could influence by many factors and attained the attention of regulators and recent studies. Thus, the present study examined the impact of corporate social responsibilities (CSR), entrepreneurship and financial factors such as leverage and liquidity along with firm size on the financial performance of the banks in ASEAN countries. This study has adopted the quantitative methods for the collecting data and gathered the published secondary data from the statements. The data has been extracted from the financial statements and published CSR reports of the banks in ASEAN countries from 2015 to 2020. The ongoing study has executed the robust standard error and fixed effect model (FEM) to examine the relationships among the variables. The results indicated that CSR, entrepreneurship, leverage, liquidity and firm size have significant and positive nexus with financial performance of the banks in ASEAN countries. These outcomes have provided the guidelines to the regulators of the banks that they should focus on CSR and entrepreneurship that could increase the financial performance of the banks.

Environment, Social, and Governance Performance and Financial Performance With National Pension Fund Investment: Evidence From Korea.

This study attempts to examine the relationship between environment, social, and governance (ESG) management and financial performance and the role of socially responsible investment in the National Pension Fund (NPF), Korea’s largest institutional investor. This study tries to provide evidence for the slack resource hypothesis by verifying whether companies with higher financial performance make more efforts to improve ESG performance. In addition, we tried to validate whether NPF is expanding its investments in corporations with high economic performance and high ESG performance. Based on our analysis, Korean companies with good financial performance actively participate in ESG. When we compared the performance between 2019 and 2020, companies with high ESG performance increased regardless of financial performance level, whereas companies with high financial performance and low ESG performance decreased. This represents that the perception and attitude of Korean companies toward ESG management are evolving. NPF has a high investment ratio for firms having a high ratio in both financial and ESG performance. NPF further invested in companies with high ESG performance, even if the financial performance is not decent. This study provides evidence that Korean companies’ interest in ESG management as well as the behavior of socially responsible investment of NPF are rising.

Achieving radical process innovations by applying technology-mindset transformations via second-order system-dynamics engineering

This study independently confirms and advances Ringberg, et al.’s (2019) perspective that technology and mindset need to be analyzed in combination, as they are fundamentally co-joined albeit with different levels of abstraction. Here, the study describes and applies “second-order systems dynamics engineering” (SOSDE) as both a macro and micro transformation catalyst for shifting from traditional manufacturing to enhance implementing radical process and product innovations. SOSDE refers to inputting new catalysts in functioning systems by simulating system design improvements (e.g., inputting new sustainability processes and objectives in production while maintaining current production efficiency and financial performance objectives). The study here describes SOSDE in poultry products manufacturing but the propositions advanced are applicable across a wide span of industries. This study contributes by integrating prior organizational mental models, production economics, industrial marketing, and systems engineering principles in empirical applications. This study demonstrates the manufacturing design possibilities for simultaneously achieving high financial performance and high ESG (environment, social, and governance) performances by phasing in production innovations and converting production wastes into profitable new products.

A Comparative Analysis of the Real Sector in Turkey from the Economic and Financial Perspectives with the CRITIC-MAIRCA Method

This study aimed to examine the economic contribution and financial performance of the real sector in Turkey. Using the real sector company accounts published by the Central Bank of the Republic of Turkey (CBRT), seventeen sectors were analysed with the CRITIC-based MAIRCA method. The economic contribution was evaluated with sub-indicators to economic growth, employment, and entrepreneurship; financial performance was evaluated with liquidity, financial structure, turnover and profitability indicators. The findings revealed that manufacturing sector provided the highest contribution to total economy and in all sub-indicators. While the sectors with the lowest contribution in the sub-indicators differed, it was determined that the sub-sector with the lowest total contribution was real estate activities sector. In terms of total financial performance and liquidity, financial structure, and profitability sub-indicators, human health and social work activities, and according to turnover ratios energy supply sector have the highest performance. The study revealed that the sectors with an increased contribution to the economy and those with high financial performance differentiate. Lastly, it has been seen that sectors with high economic contribution exhibit weak financial performance. The findings were checked by sensitivity analysis and proposed method produces consistent results against weight changes and the model is reliable.

Financial Performance of Initial Public Offerings: Exploratory Study

The subject of prowess and relevance constantly represents an apprehension of the leaders which alerts the presence of the firm in its market notwithstanding their definitions and complicated measures emanating from the determination of the performance. The latter, as being a kaleidoscopic and multidimensional construct, can never illustrate a consensus of the authors.&#x0D; The present study allows us to constitute a frame of reference to prepare the ground of an investigation concerning financial performance before and after Initial Public Offerings (IPOs) in companies listed on the Casablanca Stock Exchange in Morocco. The object of this paper is to offer a literature review that highlights the explanatory factors of an IPO decision and its impact on financial performance. Notably through theoretical foundations which underlie the decision to go public and its effect on performance, namely: the theory of the agency and the timing of the market theory (founded on the assumption of earnings management). As well, based on international empirical studies that demonstrated the behavior of listed companies (regardless of their structure or their line of business) in terms of performance in a period pre- and post-listing. By using different aggregates and performance indicators, the studies’ findings proved the phenomenon of higher financial performance that improves faster than normal during the year before but diminishes after the going public event in the long run. This article brings a more holistic and integrated view of the relationship between IPO and performance, as well as avenues for future research are offered in the conclusion.

Terrorist attacks and bank financial stability: evidence from MENA economies

This study examines the impact of terrorism on bank stability, represented by bank risk and financial performance. We consider banks from 14 countries located in the Middle East and North Africa region for the period 2010–2018 using both the three-stage least-square and the generalised method of moments. The results provide strong evidence that banks located in countries with high exposure to terrorist attack exhibit low financial stability, due to high bank risk (i.e., high credit and insolvency risk). However, these banks show high financial performance (i.e., high profitability and cost efficiency), on average. Our results also show differential impacts on bank stability for countries marked as more (less) exposed to risk of attacks. For banks located in high-income-generating countries, we find that exposure to terrorism is associated with low financial performance and high credit risk, which is the opposite case for low-income-generating countries. Our results also indicate high systemic risk for listed banks operating under high terrorism risk exposure.

ЕМОЦІЙНИЙ ІНТЕЛЕКТ ЯК ІННОВАЦІЙНИЙ ФАКТОР ЕФЕКТИВНОСТІ БІЗНЕСУ

The article analyzes the concept of "emotional intelligence", reveals the need for its assessment by the company's staff and consideration for employment. The socio-psychological research in this area were studied, an analysis of the influence of the EI level on the employee's performance was carried out, the experience of foreign companies in using the EI factor in their activities was considered. It has been proven that at present, companies of the fourth level of maturity with the highest financial performance, which have made a bet on EI, firstly, have a highly effective potential for recruiting and hiring personnel, including such emotional and psychological characteristics as ambition, learning, passion, and purposefulness. Secondly, they acquire a competitive advantage in the new market conditions associated with global technological challenges and business process management in the context of digitalization and Industry 4.0 in general.

Promotion Pathways of Financial Performance: A Configuration Analysis of Corporate Social Responsibility Based on a Fuzzy Set Qualitative Comparative Analysis Approach

To explore the mechanism of multiple conjunctural causation underlying differences in financial performance, this study selects 39 Chinese companies from the Fortune Global 500 as samples and applies configurational thinking and the qualitative comparative analysis (QCA) approach to integrate five variable conditions concerning corporate social responsibility (CSR). The results show that 3 path configurations achieve high financial performance. Specifically, the first configuration includes highly responsible governance, superior employee rights and interests, and effective environmental protection. The second configuration includes highly responsible governance, superior employee rights, and active public charity. The third configuration includes highly responsible governance, active public charity, and effective environmental protection. The four dimensions involved in the above three path configurations have alternative effects in interpreting financial performance. When the level of responsible governance ability is high, as long as any two conditions among employee rights and interests, environmental protection and public charity also attain a high level, this situation can drive the corporation to achieve high financial performance. Based on the conclusions of this paper, management implications from the perspectives of firms are also proposed.