Improvement In Financial Performance Research Articles

The Role of CSR in Improving Corporate Image and Financial Performance in the Banking Industry

Corporate Social Responsibility has an important role in improving the company's image and financial performance in the banking industry. Although many previous studies have shown a positive relationship between Corporate Social Responsibility and corporate performance, the phenomenon that has occurred shows that not all banks have experienced an improvement in financial performance despite having implemented Corporate Social Responsibility practices. This study aims to analyze the impact of Corporate Social Responsibility practices on public perception and financial performance of banks, with a focus on sustainability and social responsibility aspects. Using a quantitative approach, data is collected through surveys to customers as well as analysis of financial statements from several leading banks in Indonesia. The results of the study show that banks that are active in Corporate Social Responsibility initiatives tend to have a more positive image in the eyes of the public, which has implications for increasing customer loyalty and acquiring new customers. These findings indicate that a positive image built through Corporate Social Responsibility activities can increase customer trust, which is a key factor in their decision to choose a financial institution. In addition, the analysis showed a significant relationship between the implementation of Corporate Social Responsibility and improved financial performance, where banks that adopted good Corporate Social Responsibility practices showed higher profit growth and better financial stability. This study fills in the gaps in the existing literature by highlighting the factors that affect the success of Corporate Social Responsibility in the context of banking, as well as underlining the importance of Corporate Social Responsibility as an integral component in a business strategy oriented towards social responsibility and sustainability, contributing to broader economic growth and a better society.

Leveraging Data Analytics for Financial Stability: A Blueprint for Sustaining SMEs in Economically Distressed Regions of the U.S.

Purpose: Our research explores how data analytics can empower small- and medium-sized enterprises (SMEs) in economically distressed regions of the U.S. by improving financial decision-making, operational efficiency, and risk mitigation. The study aims to provide a blueprint for leveraging data-driven insights to ensure long-term financial stability and economic growth in underserved areas, particularly in the Midwest and Southern states. Methodology: The study employs a case-study approach to analyze the real-world applications of data analytics platforms in SMEs within economically distressed regions. It uses statistical analysis to compare the performance of businesses that have adopted data analytics tools with those relying on traditional methods. The methodology also includes the collection of data from various sources such as financial performance records, customer analytics, and predictive models. Findings: The research demonstrates that SMEs using data analytics experience significant improvements in financial performance. For instance, predictive analytics increased financial forecasting accuracy by 25%, and real-time business intelligence tools reduced operational costs by 15%. Businesses using customer analytics tools saw a 20% rise in customer retention and a 15% increase in revenue. The study shows that data-driven strategies can improve overall financial stability by 30% and enable SMEs to proactively mitigate risks in volatile markets. Unique Contribution to Theory, Policy, and Practice: The study contributes to the emerging body of literature on the transformative potential of data analytics in financially distressed regions, providing new insights into how real-time and predictive analytics can enhance financial decision-making in SMEs’ practices within the economically distressed regions. The study provides a practical blueprint for SMEs to adopt data analytics tools, demonstrating their impact on financial stability, operational efficiency, and long-term growth. It offers actionable recommendations for business leaders in distressed regions to integrate analytics equitably into their decision-making processes.

Moderating Effect of Board Characteristics on the Association between Asset Liability Management and Financial Performance of Commercial Banks in Nigeria

Asset liability management and consistent improvement in financial performance are the responsibility of the Board of Directors of commercial banks, yet studies on the impact of asset liability management on the financial performance of commercial banks in Sub-Saharan Africa have excluded board characteristics variable from their statistical model. This study examines the moderating effect of board characteristics and asset liability management on the financial performance of commercial banks in Nigeria. Commercial banks. It was based on secondary data, obtained from annual reports of commercial banks in Nigeria, the study covered the period starting from 2012 to 2021 and it purposively selected eleven (11) commercial banks out of fourteen (14) commercial banks in Nigeria. The statistical analysis was done using LASSO (Least Absolute Shrinkage Selection Operator). The findings of the study revealed that the moderating effect of board characteristics and asset liability management had a statistically significant impact on the financial performance of commercial banks in Nigeria because the p-values (0.04;0.03,0.02,0.01, and 0.005) obtained using LASSO were less than the 5% statistical threshold used in this study. The study concluded that the board of directors of commercial banks in Nigeria should ensure that they appoint board members who have expertise and experience in the establishment of asset liability management since its interaction with board characteristics showed a statistically significant impact on the financial performance of the bank.

The Impact of ESG Practices on Corporate Performance in the Context of Digital Transformation: A Case Study of TBEA

In the context of digital transformation, enterprises are facing unprecedented opportunities and challenges, and environmental, social, and governance (ESG) practices have gradually become a focus of attention for enterprises. How to improve their own ESG practices to enhance corporate performance is crucial for the sustainable development of enterprises. This article selects TBEA as a case study enterprise to study its ESG practices from the perspectives of environment, society, and corporate governance in the context of digital transformation. Furthermore, relevant indicators are used to analyze the impact of ESG practices on corporate performance. Research has found that good ESG practices can promote the improvement of a company's financial and non-financial performance, with non-financial performance mainly reflected in the value created by the company for stakeholders.

Managerial capital in subsistence small businesses

ABSTRACT Managerial capital is important to the performance of small businesses in developing countries. The values and attitudes of members of the organization possibly condition managerial capital. Small businesses in subsistence markets (subsistence small businesses) tend to have limited managerial capital. This paper analyzes the mechanism through which managerial capital affects organizational and financial performance in subsistence small businesses. The results indicate that managerial capital positively affects all the values and attitudes of companies. However, the mediation of values and attitudes is different: an innovative attitude and learning orientation lead to improvement in both organizational and financial performance; members’ involvement improves organizational performance but does not affect financial performance; and environmental concern does not affect organizational performance, it worsens 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.

Revolutionizing Sourcing with AI: Harnessing Technology for Unprecedented Efficiency and Savings

Artificial Intelligence (AI) is transforming the landscape of sourcing, providing unprecedented efficiency and cost savings. This paper explores how AI technologies such as machine learning, natural language processing, and predictive analytics are revolutionizing sourcing processes. We examine case studies across various industries, highlighting the impacts of AI on supply chain optimization, supplier selection, and procurement processes. The findings indicate significant improvements in operational efficiency, decision-making accuracy, and financial performance. For instance, a leading automotive manufacturer reduced procurement costs by 20% using AI-driven sourcing (Smith et al., 2020), while a global retail giant increased supplier quality by 25% through AI-enhanced evaluation (Johnson et al., 2019). Additionally, a healthcare provider optimized inventory management, resulting in a 10% reduction in inventory costs (Williams and Brown, 2021). Future research directions and practical implications for AI-driven sourcing are also discussed, emphasizing the potential for continued innovation and growth in this field. The challenges and opportunities associated with AI implementation in sourcing are addressed, highlighting the need for quality data, integration with existing systems, and skilled personnel to manage AI technologies.

How does adopting sustainable supply chain quality management improve corporate financial performance? A transaction cost perspective

This article examines the impact of adopting SSCQM on the financial performance of companies, based on transaction theory. The main objective of this study is to assess how reducing transactional costs through SSCQM, or within its framework, can improve the financial performance of Moroccan companies. The methodology is based on quantitative analysis, using an econometric model (GLM-Gamma) to test the association between SSCQM adoption and financial performance. The results of the study show that various SSCQM-related practices positively affect companies’ financial performance. Managing sourcing costs significantly improves profit margins. Contracts focusing on quality and sustainability, and minimizing the risk of non-compliance, also boost financial performance. However, the ability to adapt and respond to regulatory changes shows no significant impact. Optimizing production processes and investing in green technologies are proving to be profitable strategies, with significant improvements in financial performance. Customer engagement and transparency and traceability of operations also have a positive impact. These results suggest that SSCQM practices, such as the adoption of green technologies and transparency policies, are beneficial for companies’ financial performance. The originality of the study lies in its approach, which links transaction theory to sustainable supply chain management, an angle little explored in existing literature. The study confirms that SSCQM is an effective strategy for improving corporate financial health by minimizing transactional costs. It recommends integrating SSCQM into companies’ management strategies to boost their competitiveness, financial performance and sustainability.

The Canadian Pacific Railway's diversification strategies: A financial performance story, 1883–2020

The diversification and financial performance literature is ambiguous. To shed light on this relationship, quantitative and qualitative research was used to study the Canadian Pacific Railway (CPR) from 1883 to 2020. The CPR was selected because of its extensive archives and past range of diversification activities. Most of CPR's diversification investments were unrelated and unsuccessful. There is a statistically significant negative relationship between diversification and operating income/Tobin's Q. This negative relationship can become U-shaped or even positive by increasing operating income via reduced costs, improved conversion of inputs into outputs, and improved service to customers. The absence of diversification is not sufficient to significantly increase performance; satisfactory financial performance only comes from increasing operating income. These findings contribute to understanding the nuanced relationship between diversification and financial performance, highlighting the advantages of pureplay and the necessity for continuous financial performance improvement with related diversification and even pureplay.

Auditing Services and SME Financial Performance: The Moderating Role of Information Technology

Abstract According to numerous studies, small and medium businesses are more financially limited than large businesses due to the lack of audited financial accounts. This study investigates the effects of Audit services on SMEs' financial performance. As a result, to obtain the necessary data for the project, the study used a quantitative strategy and a survey method. The study's participants are registered SMEs from the Registrar General's Department. The sample size was determined using a list of 6,000 registered small and medium businesses. The SMEs were chosen through a systematic selection process and were given questionnaires. The PLS-SEM Software was used to analyse the data collected from the respondents. The findings indicate that the use of audit services results in the avoidance and detection of financial irregularities, resulting in an improvement in SMEs' financial performance. The study also found a positive relationship between information technology and the financial performance of SMEs. Keywords: Audit Services, Small and Medium Scale Enterprise (SME), Financial Performance, information technology.

Is “Responsible Leadership” A Pathway Toward Improving Performance Among Micro and Small Restaurants with Innovative or Bureaucratic Organizational Cultures?

ABSTRACT In recent years, responsible leadership (RL) practices have become more common across all types of businesses and in those associated with tourism in particular, characterized by micro and small enterprises (MSEs) and where dependence on the leader is even greater. But this style of leadership needs further theoretical development. One way to advance in this theoretical development is to demonstrate empirically the outcomes of RL. This leadership style goes beyond the leader-employee relationship, impacting all stakeholders and, therefore, interacting with the organizational identity. Therefore, the aim of the present study is to analyze the effect of RL practices on business performance in the restaurant sector, where many companies are micro or small, taking into account the moderating effect of organizational culture (OC). The study is conducted on a sample of 141 MSE restaurants in tourist areas of Spain, with the owner or general manager being the key informant. The results show that RL practices contribute to the improvement of both financial and innovation performance among such businesses. This effect is even greater when the restaurant develops an innovative OC. These results show that the impact of RL on business performance is higher in innovative organizations, linking the theoretical developments around RL and OC.

The Successful Transformation Strategies and Performance Analysis of Listed Companies: Taking Haier Company as an Example

This article takes Haier, a well-known listed company in China, as the research object, and explores in depth the strategies and performance analysis for successful transformation of enterprises. The article first provides an overview of the basic situation of Haier Company, focusing on its three stages of diversified development, international development, and global intelligent development, showcasing the growth process of Haier Company in continuous transformation. On this basis, this article further analyzes the key strategies for Haier's successful transformation, mainly including organizational strategy restructuring, product digitization, and digital platform construction. Then, this article also conducted a comprehensive evaluation of the transformation effect of Haier Company. The evaluation was conducted from two dimensions: financial performance and non-financial performance, and the results showed that Haier Company achieved significant improvement in financial performance and non-financial performance during the transformation process. Based on the above research, this article draws the conclusion of Haier's successful transformation and summarizes its experience. Research has found that Haier has achieved significant results in financial performance and comprehensive improvement in non-financial performance by implementing effective transformation strategies. This provides useful reference and guidance for other listed companies in China, which helps to promote the development of related industries.

How Audit Committee Address The Effects Of Political Connections And Government Ownership In Banking Sector

Purpose: This research aims to examine the influence of political connections, government ownership, and changes in loans on financial performance, as well as the role of the audit committee in moderating the relationship between political connections, government ownership, and financial performance. Methodology/approach: The research sample consists of 32 banking companies listed on the Indonesia Stock Exchange from 2017 to 2021. This study utilizes the Structural Equation Model-Partial Least Squares (SEM-PLS) analysis with WarpPLS.. Findings: The research results indicate that political connections and changes in loans have a significant impact on financial performance, while government ownership does not show any influence on financial performance. Moreover, the audit committee was found to moderate the relationship between political connections and government ownership with financial performance. Practical implications: This research contributes to the management of companies by providing insights into the factors that influence the improvement of the company's financial performance. A significant improvement in financial performance is a positive signal that investors receive about the company, thus influencing their investment decisions. Originality/value: This research adds an audit committee as a moderator, uses market-based measurements for banking financial performance, and uses a new measurement scale to assess the size of companies, especially in the banking sector, referring to POJK. Number 12 of 2021 based on Bank Group Core Capital (KMBI).

Post-Merger Commercial Bank Performance Trends: A Case of Kenya

Commercial banks face performance challenges since most of them react to these challenges in a fairly standardized manner. This is because most of the commercial banks offer similar products and services. In so doing, they face high competitions and as a result, they engage activities in pursuit of a competitive edge in order to keep their current customers and attract new ones. Some of the strategic activities these companies have engaged in the recent past have been Mergers and acquisitions (M&A). M&A have become an effective strategic tool to consolidate the Banks and Financial Institutions (BFIs) in Kenya to increase their capital base, expand their business, and bring financial stability. However, despite venturing into mergers and acquisitions, evidence from elsewhere indicates that financial performance stability and improvement still remains a challenge forming a good basis for further empirical investigation. This paper provides an assessment of the post-merger commercial bank performance in Kenya over the period 2008 to 2019 using return on equity as a proxy for bank performance. The target population for this study comprised all 13 commercial banks operating in Kenya between the year 2008 and the year 2019. The study used purposive sampling to select thirteen (13) commercial banks that had undergone mergers and acquisitions in Kenya over eleven years (from 2008 to the year 2019). The study finds that the post-merger effect of mergers and acquisitions on financial performance is mixed. Some commercial banks reported improved ROEs while a few reported declining ROEs during the study period. To enhance performance, the study recommended that commercial banks should prioritize M&A opportunities that align with their long-term strategic goals. This might include expanding into new geographic regions, entering new markets, diversifying product offerings, or gaining access to new technologies. Banks should assess the potential risks associated with the M&A transaction, including credit risk, operational risk, and reputational risk. Develop strategies for mitigating these risks and ensuring a smooth transition. Keyword: Mergers, Strategy, Acquisitions, Performance, Return on Equity, Synergies, profitability.

Research on the Relationship between ESG Performance and Performance of Listed Companies under the Dual Carbon Target-the Mediating Effect Model Based on Internal Control

Under the guidance of the dual-carbon goal, the relationship between corporate environmental, social and governance (ESG) performance and performance has received increasing attention. This study uses internal control as an intermediary variable to analyze the interaction mechanism between ESG performance and corporate performance. This paper selects the data of Shanghai and Shenzhen listed companies in the past ten years for analysis, and uses multiple regression models, intermediary effect models and other methods to empirically test the direct impact of ESG performance on corporate performance and the indirect impact through internal control. The research finds that good ESG performance can promote the improvement of corporate performance, and good internal control can strengthen corporate governance, and then effectively regulate ESG performance and corporate performance, thus indirectly promoting the improvement of financial performance. This study proves the importance and necessity of optimizing enterprise ESG performance and strengthening enterprise internal control to promote high-quality sustainable development of enterprises in the context of dual-carbon. This study provides a theoretical basis and practical guidance for enterprises to achieve a win-win situation of economic benefits and social responsibility while pursuing sustainable development.

The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations

Green innovation is a new approach to achieving sustainable social development. Examining whether firms can reap the rewards of this costly and risky endeavor is essential to assessing whether they can sustainably adhere to a green strategy. This study was conducted on a sample of Chinese A-share-listed firms from 2010 to 2021 and employed a two-way fixed-effects approach. We found that substantive and strategic green innovations significantly impact firms’ financial and environmental performance. Specifically, substantive green innovation leads to a significant improvement in financial performance, while strategic green innovation weakens financial performance; both types of green innovations lead to a significant improvement in environmental performance, with strategic green innovation being more effective in this regard compared to substantive green innovation. Moreover, our heterogeneity analyses showed that substantive green innovation has a weaker effect on improving financial performance in state-owned enterprises (SOEs) and in firms in regions with higher government environmental concerns; similarly, in SOEs, strategic green innovation has a weaker detrimental effect on financial performance. The findings of this study provide substantial evidence for promoting green innovation transformation and the upgrading of enterprises.

Corporate Governance Practices and Performance of Deposit Money Banks in Nigeria

Performance of deposit money banks in Nigeria. The specific objective of the study was to critically appraise the relationship between size of board of directors, composition of board members, frequency of board meetings and return on assets of deposit money banks in Nigeria. The data were sourced through secondary sources from annual reports and accounts of sampled deposit money banks in Nigeria. The stated Null Hypotheses were tested through data analysis by using the correlation analysis as analytical tool. The research findings reveal that board size has a positive and strong relationship with return on assets while board composition has a positive but moderately strong association with return on assets. Furthermore, frequency of board meetings has a negative and very weak relationship with return on assets of deposit money banks in Nigeria. The implication of the findings is that increased board size could result in the improvement of financial performance of deposit money banks. The research found that such increase in number of members of the board will generate the desired outcome if it centers on independent nonexecutive directors with wealth of corporate governance experience, sound and profitable contacts, good and relevant education. The negative relationship with frequency of board meetings implies that banks should begin to trim down on number of board meetings as research has found that frequent meetings signal a crisis or distress situation with perceptions of going concern issues and bank failure. The study recommends that new independent non-executive professionals with critical governance and management attributes could be introduced into the board to improve the quality of decisions, earnings and general performance. Frequency of Board Meetings should be reduced to save cost and time while virtual meetings should be called more often than physical meetings as distance is no longer a barrier.

How to select oil price prediction models — The effect of statistical and financial performance metrics and sentiment scores

Predicting crude oil prices is an important yet challenging forecasting problem due to various influencing quantitative and qualitative factors. To address the growing number of potential prediction models and model parameters to consider during model selection, we highlight the need to systematically compare alternative prediction models and variables while taking the specific context of their application into account. Specifically, we provide a novel perspective on oil price prediction models by comparing a variety of different forecasting models and considering both their statistical and financial performance. In addition to common statistical measures, to assess the usefulness in a practical setting we evaluate the potential financial impact of the predictions in a simulation of a simple trading strategy. We show that the ranking of different approaches depends on the selected evaluation metric and that small differences between models in one evaluation metric can translate into large differences in another metric. For instance, forecasts that are not considered statistically different can lead to substantially different financial performance when the forecasts are used in a trading strategy. Finally, we show that including qualitative information in the prediction models through sentiment analysis can yield both statistical and financial performance improvements.

ANALISIS KINERJA SAHAM BANK SYARIAH INDONESIA SATU TAHUN PASCA MERGER (STUDI KASUS BANK SYARIAH INDONESIA, TBK)

This study reveals the performance of Bank Syariah Indonesia, compared to the performance of BRISyariah which is one of the banks that merged into BSI. Prior to the merger, there were three Sharia Banks owned to the state-owned Bank Association, namely Bank BRISyariah (BRIS) which had gone public, as well as Bank BNI Syariah (BNIS) and Bank Syariah Mandiri (BSM) which had not gone public. BSI's financial performance is better than the financial performance of BRIS, BNIS, and BSM as can be seen from the income statement and balance sheet, as well as from financial ratios such as ROA, ROE, EM, PM and AU. BSI's stock performance is also better than the stock performance of BRIS, as can be seen from PER and PBV. The improvement in financial performance and stock performance after the merger shows that the synergy and increased economies of scale resulting from the merger have had a positive impact on the bank's financial performance, which has also been appreciated by shareholders on the stock exchange. Meanwhile, the analysis of BSI's stock beta shows that the number after the merger is higher than the BRIS beta before the merger. However, the increase in beta cannot be concluded as an increase in systematic risk, because the beta of BNIS and BSM are not yet known.

The CSR perspective: Interplay of technological innovation, ethical leadership and government regulations for sustainable financial performance.

The financial performance of Chinese public and private sector banks is changing over time. There is no stability in the financial performance of Chinese banks which hurts businesses and the market. The purpose of current research was to determine the influence of corporate social responsibility (CSR) on driving the sustainable financial performance of Chinese banks. From methodological perspective, data was collected from 329 banking sector employees from China to partial least square-structural equation model (PLS-SEM) is employed for data analysis. The research used SPSS 24 and Smart PLS 4 as statistical analysis tools. This research confirmed that achieving sustainability in financial performance for Chinese banks can be achieved with CSR influenced by technological innovation, ethical leadership, and government regulations. This research has statistically confirmed that transformational leadership leading to CSR with technological innovation, ethical leadership, and government regulations can make significant improvements in financial performance. The framework developed by current research is a novel contribution to the literature. The findings of this research improve the literature on the banking sector and advanced performance. Furthermore, this research has highlighted significant ways that can help the banking sector employees to improve their financial performance with sustainability.