Improvement In Financial Performance Research Articles

Analisis Rasio Profitabilitas dan Likuiditas untuk Menilai Kinerja Keuangan pada PT. Bukaka Teknik Utama Tbk Tahun 2018-2022

This study aims to analyze the financial performance of PT. Bukaka Teknik Utama Tbk, with a focus on profitability and liquidity ratios during the period 2018-2022. The method used is descriptive with a quantitative approach. This research aims to assess the company's ability to generate profits, meet short-term obligations, and improve its liquidity. The research findings indicate an improvement in profitability over the years, with an average net profit margin of 10.72%. However, operational efficiency remains a concern with an average gross profit margin of 16.95%. While PT. Bukaka Teknik Utama Tbk achieves an average return on assets (ROA) of 9.51%, the average return on equity (ROE) is 17.82%. Additionally, liquidity ratios, including the current ratio, quick ratio, and cash ratio, need to be evaluated to gain a better understanding of the company's financial condition. This study aims to provide deeper insights into the company's financial performance and recommend appropriate improvement measures.
 Keywords: Profitability, Liquidity, Financial Performance

Green Financial Management and its Impact on Small Medium Enterprises (SMEs): An Empirical Study in Indonesia

This study investigates the relationships between Green Financial Management (GFM), Green Operational Practices (GOP), and Financial Performance (FP) within Indonesian firms, offering new insights into the strategic importance of sustainability in financial management. We conducted a multivariate analysis of data obtained from a sample of 256 firms in Indonesia. The results reveal a significant positive association between GFM and GOP and a subsequent improvement in FP. Moreover, our study finds that the Regulatory Environment (RE) and Market Competition (MC) play moderating roles in the GFM–GOP relationship. In contrast, the GOP serves as a mediator between GFM and FP. Despite various limitations, this research offers crucial empirical support for the idea that green finance management may enhance a company’s environmental responsibility and financial success. The report also identifies areas for further investigation, emphasising how crucial sustainability is to corporate strategy planning.

The Role of Good Corporate Governance on Hospital Performance During Covid-19

This study focuses on the role of corporate governance in mediating the relationship between the public sector, specifically government-owned hospitals, and financial performance during the Covid-19 pandemic. While there is existing research on corporate governance, there is limited attention given to the public sector and government hospitals in the context of the pandemic. The study highlights government hospitals as they are on the front lines of healthcare services during the pandemic and have experienced a significant influx of patients, particularly in Covid-19 referral hospitals. This has created financial challenges for hospitals, with increased workloads and disrupted cash flows. The objective of this study is to determine the extent to which corporate governance can help manage the financial difficulties faced by government hospitals during the pandemic. The findings of this research are expected to provide valuable insights for the government and hospital managers, aiding in the improvement of corporate governance and financial performance during emergencies such as the Covid-19 pandemic

Mergers and Acquisition in the Fashion Industry

On August 10th, 2023, Tapestry Inc., the parent company of renowned fashion brand Coach, announced a definitive agreement to acquire Capri Holdings Limited, which owns the iconic brands Michael Kors, Versace, and Jimmy Choo. This move signals the companys aspirations to establish a powerful global portfolio of ironic luxury brands, one that would rival European conglomerates LVMH, Richemont, and Kering. Merger and Acquisition is a strategic tool utilized by organizations worldwide to adapt to the demands of todays dynamic business environment. This strategy has gained significant attention and prominence in the fashion industry. Therefore, this study employs profitability metrics, liquidity metrics, and credit metrics to assess the post-merger financial performance of a select group of fashion companies, thereby gauging the effectiveness of the M&A tool. Results of this study show that there are no significant improvements in financial performance following the merger and acquisition.

How brand loyalty and its marketing activities affect Japanese fashion companies' financial performance

PurposeTo investigate (1) the relationship between young adults' behavioural brand loyalty (BBL) and Japanese fashion companies' financial performance (FP) and (2) FP improvement from the perspectives of social media brand engagement (BE) and loyalty programmes (LPs) by applying the complexity theory.Design/methodology/approachA mixed methodology was employed by combining qualitative and quantitative approaches to examine the prediction of outcomes by various variables in a realistic context. The integrated model associated BE and LPs with BBL and FP, which are essential for fashion companies. We selected 14 fashion brands belonging to 14 publicly traded Japanese fashion companies and surveyed 183 Japanese consumers (aged 18–25 years) who chose these brands as their favourites, engaged with the brands and participated in LPs.FindingsThe findings reveal the positive and negative effects of the variables (BE and LP) on the outcomes (short- and long-term FP). They offer marketing implications regarding brand strategy and financial improvement by considering various combinations of causal factors and complex situations, such as the fashion brands' and consumers' characteristics.Originality/valueExisting empirical studies consider consumers' symmetric reactions to the benefits and losses from variables (BE, LP and BBL) but do not realistically reveal the negative and positive effects on outcomes (FP). This study addresses this gap by applying the complexity theory and offers multiple solutions to target different consumer types to predict high FP.

Risk Management and Financial Performance of Commercial Banks in Nigeria.

This study establishes the degree to which risk management has impacted profitability of commercial banks with the aim of contributing to improving the financial performance improvement. This study used secondary data from listed banks extracted from Central Bank of Nigeria list of financial institutions. The study was 2012 to 2021. The sample size of fourteen commercial banks in Nigeria was utilized for the study. Data were analysed using descriptive, Pearson correlation, r and Multiple linear regression (ANOVA) r statistical analysis. Findings were that the Pearson results posted significant relationships among credit risk, operational risk as measures of risks with profitability measures of net interest margin except the liquidity risk. The linear regression result indicated that Credit risk has significant effect on Net interest margin. However, there is no significant effect of liquidity and operation risk on net interest margin of commercial banks in Nigeria. The findings suggest that effective risk management strategy play a key role in commercial banks profitability in Nigeria. Therefore, this study recommended that effective risk management framework to improve financial performance.

DOES FINANCIAL LITERACY AND INCLUSION AFFECT VILLAGE OWNED ENTERPRISES FINANCIAL PERFORMANCE

This study aims to examine the impact of financial literacy and financial inclusion on financial performance with rational decision-making and financial capital as mediating variables. This study uses a partial least square structural equation model since this study uses latent variables. All variables in this study were measured using a questionnaire distributed to BUM Desa managers in East Jawa Province using a convenience sampling technique. A total of 69 questionnaires were returned and used in this study. The financial literacy of BUM Desa managers has a direct influence on improving BUMDesa's financial performance. Financial inclusion of BUM Desa will motivate BUM Desa managers to be rational in making capital decisions that will affect the improvement of financial performance. This study cannot prove the effect of financial inclusion on financial performance. This study failed to prove the mediating role of the impact of financial literacy on financial performance.

Organizational, Social, Economic and Financial Management Performance of Cooperatives

This study aimed to determine the level of organizational, social, economic and financial performance of cooperatives when taken altogether and when grouped according to variables and to determine if there is significant difference on the level of organizational, social, economic and financial performance of cooperatives when grouped according variables. This aims to know whether or not organizational, social, and economic performance of cooperatives significantly predict financial management performance of cooperatives. Descriptive-Quantitative design is used in this study and instrument used was the Cooperative Performance Report Questionnaire together with interview questions which were conducted through face to face interview. Organizational, Social, Economic and Financial Management Performance of Cooperatives in Negros Occidental when taken altogether is excellent, very satisfactory, excellent, and satisfactory, respectively. There is significant difference in the level of organizational performance when grouped according to variables. No significant difference in social performance when grouped according to variables. No significant differences in economic performance of cooperatives when grouped according to variables. In financial performance of cooperatives when grouped according to variables a significant difference existed, when grouped as to classification, however, no significant difference existed in financial performance of cooperatives when grouped according to age. Organizational, social, economic performances of cooperatives are predictors of financial performance. There is significant relationship between organizational performance and social performance, organizational performance and economic performance, organizational performance and financial management performance, social performance and economic performance, no significant relationship between social performance and financial management performance, economic performance and financial management performance, respectively. Cooperatives maybe encouraged to sustain excellent organizational, social, economic and financial management performances while very satisfactory and satisfactory performances needs improvement. Programs on the improvement of financial performance of cooperatives may be initiated by cooperatives or by proper authorities’ in-charge. Lastly, close and intensive monitoring of Cooperative performance is recommended.

ANALISIS KINERJA KEUANGAN BANK SEBELUM DAN SESUDAH DIAKUISISI

The purpose of this research is to find out whether there has been an improvement in the financial performance of Bank Permata after it was acquired by comparing the financial performance of the banks two years before and two years after. This study uses financial ratio analysis of LDR, CAR, ROA, BOPO, NPL as the calculation. The method used in this study is a qualitative method using secondary data. The object of this research is Permata Bank. Data collection was carried out by means of literature studies and documentation. Where data is obtained from Bank Permata's financial reports. Based on the results of the financial performance analysis at Permata Bank, it was concluded that LDR, CAR, NPL had improvements in Permata Bank's financial performance. Meanwhile, ROA and BOPO did not improve after being acquired but are in a safe position for the soundness of the bank

Lean Transformation Success: The Role of Management and Employee Engagement

The purpose of this research is to compare the engagements of employees and management throughout Lean transformation, which could enhance the Lean transformation success and encourage better fulfilment of goals. Based on the role of Lean and the importance of the decisions of management within a company, we wanted to identify which management and employee engagements are efficient and does their common influence can lead to a successful Lean transformation. Data was collected through an online survey, in which participants expressed their opinions on various aspects of Lean transformation in the company. The paper provides a comparative discussion of engagements, which could be useful for improving a company’s waste elimination, cost reduction, improving capabilities, increasing competitive advantage, financial and operational performance improvement. It gives practitioners guidelines on building a corporate culture where management and employees’ roles and involvements are directed towards achieving successful Lean transformation. Research Question: This study investigates which management and employee engagements enhance the fulfilment of Lean transformation goals and whether there is any difference in opinion among management and employees about Lean transformation success. Motivation: Our motivation was to explore different stakeholder roles within the company for Lean transformation. Idea: The main idea of this study was to examine the role of Lean from two perspectives, based on the level of engagement and role in the company – management and employee roles, and how they influence the company’s success. Data: An online survey was conducted, where the respondents pointed to various aspects of the company, such as company size, industry they operate in, ownership structure, etc. Data processing was carried out in the SPSS 25 package on 82 responses. Tools: As the initial step of the research, using Cronbach's alpha, it was concluded that obtained set of items in the group are closely related and measure a particular aspect. Mann-Whitney U test and Spearman-rho correlation test were used for the data analysis. Findings: The findings present a comparison of engagements and recommendations for engagements to follow in order for the company to be more successful in Lean transformation. Contribution: This research can help in reducing the research gap on the lack of comparisons of the engagement in these stakeholder roles. It provides practitioners with guidance on what steps they should take to be more successful in Lean transformation so that they can focus more on overcoming them and less on identifying them.

Analisis Rasio Profitabilitas dan Likuiditas untuk Menilai Kinerja Keuangan Pada PT. Bukaka Teknik Utama Tbk Tahun 2018-2022

This study aims to analyze the financial performance of PT. Bukaka Teknik Utama Tbk, with a focus on profitability and liquidity ratios during the period 2018-2022. The method used is descriptive with a quantitative approach. This research aims to assess the company's ability to generate profits, meet short-term obligations, and improve its liquidity. The research findings indicate an improvement in profitability over the years, with an average net profit margin of 10.72%. However, operational efficiency remains a concern with an average gross profit margin of 16.95%. While PT. Bukaka Teknik Utama Tbk achieves an average return on assets (ROA) of 9.51%, the average return on equity (ROE) is 17.82%. Additionally, liquidity ratios, including the current ratio, quick ratio, and cash ratio, need to be evaluated to gain a better understanding of the company's financial condition. This study aims to provide deeper insights into the company's financial performance and recommend appropriate improvement measures.

Social capital accounting and financial performance improvement: the role of financial information reliability as a mediator

Purpose The purpose of this paper is to investigate the role of accounting measurement and disclosure of social capital (AMDSC) in improving financial performance (FP) in industrial companies in the Kurdistan Region of Iraq (KRG) and Sulaimani city. The research also examines the mediating role of reliability of financial information (RFI) between AMDSC and FP. Design/methodology/approach This research uses SmartPLS to analyze the questionnaire that was sent to 10 industrial companies operating in the iron sector during 2021. Findings The findings reveal that AMDSC has a significant effect on improving the FP of the industrial companies in KRG. The results also confirm that the RFI mediates between AMDSC and FP. Thus, this suggests that social capital (SC) needs to be considered in the companies’ strategy to secure future financing in this area. Research limitations/implications This paper is limited to the iron sector of KRG/Sulaimani city. Future studies could address other sectors, such as sugar, cement, clothes, automobiles and medicines. Originality/value This paper focuses on improving FP in industrial companies in KRG and Sulaimani city through considering SC in their companies’ strategies, as there was no concern for SC in KRG before.

Determinants of Local Government Financial Performance in Indonesia

Regional autonomy is expected to promote financial performance and people’s welfare. This study investigates factors that affect local governments’ financial performance in Indonesia, where performance is defined as the ability to generate local revenues. To test our hypothesis, we used panel data regression analysis. From 2012 to 2019, this study collected 3,747 observations on municipal governments. The dependent variable is local government financial performance, while the independent variables include region size, capital spending, financial reporting quality, audit recommendations, and the horizon problem. We find that the size of the local government, financial reporting quality, and the follow-up on audit recommendations positively affect financial performance. Larger local governments have more resources to generate revenues. High financial reporting quality and accountability are supposed to improve public trust and increase their willingness to make contributions through local tax payments. Capital expenditure, on the other hand, is associated with lower financial performance. This study contributes to the literature on financial performance, especially in the public sector, by providing empirical evidence on factors affecting local government financial performance. This study provides insight to stakeholders by providing evidence on the role of size, capital spending, audit opinion, and follow-up of audit recommendations in accelerating the improvement of financial performance. 
 
 Received: 13 July 2023 / Accepted: 25 August 2023 / Published: 5 September 2023

Fiscal Management Competence of Principals to Financial Performance and School Improvement in Public Elementary Schools: Its Impact on Financial Resources Management

Fiscal Management Competence of Principals to Financial Performance and School Improvement in Public Elementary Schools: Its Impact on Financial Resources Management

Impact investing in disadvantaged urban areas

AbstractResearch SummaryWe examine whether impact investing is more effective in fostering business venture success and social impact when investments are directed toward ventures in disadvantaged urban areas compared to similar investments directed toward ventures outside these areas. We explore this question in the context of loans made to business ventures in French “banlieues” versus “non‐banlieues.” We find that, following the loan issuance, banlieue ventures achieve greater improvements in financial performance and greater social impact in terms of the creation of local employment opportunities, quality jobs, and gender‐equitable jobs. This suggests that impact investors are able to contract with ventures of greater unrealized potential in banlieues, as banlieue ventures tend to be discriminated on the traditional loan market. The latter is corroborated in a controlled lab experiment.Managerial SummaryWe shed light on the unrealized potential of business ventures in economically disadvantaged urban areas, known as “banlieues” in France. Our results show that, after receiving loans from an impact investor, banlieue ventures achieve greater financial performance compared to non‐banlieue ventures. What is more, banlieue ventures achieve greater social impact by creating more jobs that benefit the local community. Why are traditional investors missing out on these opportunities? Our results point toward discrimination of banlieue ventures on the traditional loan market. This is confirmed in a controlled lab experiment, in which participants are less likely to approve loans to banlieue ventures compared to identical non‐banlieue ventures. These insights can guide managers and investors seeking sustainable, socially impactful, and financially viable investment opportunities.

Pentingnya Eksekusi Kepemimpinan Strategis Dalam Mencapai Tujuan Perusahaan: Chapter Review Dari Buku The Strategic Leader’s Roadmap

Objective: This article aims to explore the importance of effective strategy execution in achieving organizational goals and draws insights from the case study of H. Lawrence Culp Jr. and the strategy-led execution at Danaher Corporation. The objective is to highlight the key learnings and implications of the study for leaders seeking to enhance their strategic leadership capabilities.Methods: The research employs a case study approach, analyzing the leadership and execution strategies implemented by H. Lawrence Culp Jr. during his tenure at Danaher Corporation. It utilizes secondary data from the book "The Strategic Leader’s Roadmap" by Harbir Singh and Michael Useem, which provides in-depth insights into the strategic leadership practices at Danaher.Results: The study emphasizes the criticality of effective strategy execution in driving organizational performance. By adopting the Danaher Business System (DBS) and incorporating principles from Lean Manufacturing and Six Sigma, Culp successfully transformed the company's culture towards a focus on quality, efficiency, and innovation. This resulted in significant improvements in the company's financial performance, steady revenue growth, and successful expansion through strategic acquisitions.Limitations: The study is based on secondary data and the case of a single organization, Danaher Corporation, which may limit its generalizability to other industries or contexts. Additionally, the study does not explore potential challenges or failures in strategy execution that may have occurred during Culp's leadership at Danaher.Keywords: Danaher Business System (DBS), Strategic Leadership, Organizational Performance, Culture Transformation, Continuous Improvement.

Designing a Strategy Map for Healthcare Centers with Balanced Scorecard Approach

Background: Due to the level of complexity of healthcare organizations, many factors play a role in improving health services. Therefore, it is necessary to develop a systematic approach to evaluate their efficiency and management system. Balanced scorecard can play a role in this field as an evaluation system by examining the cause-and-effect relationship of goals and drawing a strategy map. Therefore, the purpose of this research was to develop a strategy map for healthcare centers with a balanced scorecard approach.
 Methods: This was a qualitative and applied research conducted using mixed methods in 2019. The statistical population of the research included all health experts from medical sciences universities across the country, 15 of whom were selected based on a targeted snowball sampling. First, through the review of texts and articles related to the literature on the subject with a general search in foreign and domestic electronic databases, a list of balanced scorecard views and the goals related to health and treatment centers of comprehensive health service centers was identified. After that, through a researcher-made questionnaire, by asking experts their opinions using fuzzy Delphi method in 2 steps, the views and goals related to comprehensive health service centers were identified. Then, through the relationships of improved network analysis process technique based on DEMETEL, in 4 steps by Excel 2016 and Matlab 2014 software, the relationships between them were examined. Finally, the effect of goals and views on each other was determined, and a strategy map was drawn.
 Results: In this research, social responsibility, as a new perspective and the attitudes of patients and society, financial status and performance improvement, growth and development, and internal processes, replaced the main perspectives of the balanced scorecard, and social responsibility was designated as a new perspective. By examining the relationship between them, the perspectives of growth and development, intra-organizational processes, social responsibility, and other views were found to be effective.
 Conclusion: Considering the complexity of the activities regarding comprehensive health service centers, replacing the views appropriate to the comprehensive health service centers with the main views provided by Kaplan and Norton (2004) can obtain the best results regarding the goals and strategy. Based on the cause-effect relationship of views, strengthening views and effective goals creates value for effective goals. Investing on influential views and goals will empower and promote the development of balance between income and expense, and the optimal use of resources will improve the views of society and patients and the quality of services, which is the main goal of comprehensive health service centers.

"Towards the improvement of financial performance of the insurance sector in Albania "

This paper explores the impact of a company's performance on the economy, with a focus on Albanian insurance companies and their importance in the non-banking financial sector. The paper aims to analyze the profitability of these companies by examining various internal factors such as company size, capital volume, liabilities, liquidity, growth rate, and fixed assets, with a specific focus on their return on assets (ROA). To achieve this objective, the paper uses quantitative methods to study the relationship between these variables. The sample comprises 10 companies in the Albanian insurance market, including both life and non-life insurers, studied between 2014 and 2021. The results show that only company size has a positive impact on profitability, while not all other variables were significant, irrespective of their direction. Ultimately, the paper demonstrates that a company's good performance can positively affect the economy in which it operates.

Executive Compensation Tied to ESG Performance: International Evidence

ABSTRACTUsing a wide sample of international publicly traded firms, this paper studies the rapidly increasing practice of incorporating Environmental, Social, and Governance (ESG) metrics in executive compensation contracts. Our evidence suggests that this compensation practice varies at the country, industry, and firm levels in ways that are consistent with efficient incentive contracting. We also observe that reliance on ESG metrics in executive compensation arrangements is associated with engagement, voting, and trading by institutional investors, which suggests that firms could be adopting this practice to align their management's objectives with the preferences of certain shareholder groups. Finally, we find that the adoption of ESG Pay is accompanied by improvements in key ESG outcomes, but not by improvements in financial performance.

A Multi-Period Regulation Methodology for Reliability as Service Quality Considering Reward-Penalty Scheme

In distribution systems, reliability insurance and financial performance are often hard to reconcile due to a natural monopoly. While many studies have proposed regulatory design of reward-penalty scheme (RPS) as an effective performance-based regulation framework to compensate for this natural monopoly, little attention is devoted to consideration of RPS in reliability as service quality. In this paper a novel methodology is proposed for considering an RPS in regard to reliability assessment problems to ensure a reasonable balance between reliability improvement and financial performance. In the proposed methodology, the impact of the utilities' financial and reliability performance in one regulation period is considered as to how it influences the next periods, i.e. multi-period modeling. The implementation results in an IEEE test system are utilized to reveal possible improvements in both reliability and financial performance, which lead to the delivery of a satisfactory level of service quality to customers in both the short- and long-term. The proposed methodology can be regarded as a performance-based standard for reliability improvement and efficient investment in distribution systems.