Industrial Financial Performance Research Articles

THE INFLUENCE OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE: EVIDENCE FROM LICENSED SPECIALIZED BANKS IN SRI LANKA

As the knowledge-based economy developed, businesses transformed their emphasis from physical to intellectual capital. Numerous studies have looked into how intellectual capital affects a company's value. The study's goal is to investigate, from 2010 to 2022, the connection between five licensed specialized banks' financial performance and their intellectual capital. The statements of comprehensive income and financial position for the pertinent years were the main sources of the data that were collected from the banks' annual reports available on their individual websites. The study's results were analysed and secondary quantitative data screened using EViews version 9 statistical software. The value-added intellectual coefficient method was used to measure the banks' performance based on their intellectual capital. The return on equity and return on assets are two indicators of the bank's performance. The value of intellectual capital was analyzed in three categories: structural, intellectual, and physical. Both simple and multiple regression techniques were used to assess the effect of intellectual capital on equity and assets. The study found a significant correlation between the value-added intellectual coefficient, its components, and financial performance. In both multiple regression models, the structural capital efficiency was statistically insignificant but positively correlated. Both multiple regression models showed statistical insignificance and negative correlation for the capital employed efficiency. Human capital efficiency was statistically significant and positively correlated in both multiple regression models. The most crucial value-added intellectual coefficient factor for generating value in Sri Lankan specialty banks operating in the banking industry is human capital efficiency. Additionally, this study will give stakeholders and possible investors some information to evaluate the value-creating potential of particular banks. The findings of the study help to increase decision-makers' understanding of the importance of intellectual capital as a crucial element that can enhance a business's ability to maintain its competitive position. This study is the first to examine the impact of intellectual capital on the financial performance of Sri Lankan licensed specialized banks through 2023. The study emphasizes how critical it is to investigate the relationship between intellectual capital and the banking industry's financial performance in greater detail.

Research on ESG performance and financial performance of new energy enterprises

ESG is more about measuring corporate environment, social responsibility, and corporate governance than traditional financial data considerations. For the long-term development of globalization and dual-carbon strategy, based on sustainable development and the realization of global development, many enterprises will consider ESG performance in corporate financial performance evaluation. In the era of advocating green life, new energy enterprises have received much attention, but their industry financial performance is closely related to ESG performance. This paper takes all of China's A-share-listed new energy companies from 2010 to 2021 as the research object and verifies the relationship between ESG performance and financial performance of new energy enterprises through empirical analysis, which is of great significance for better high-quality development of new energy enterprises.

Comparison of Tourism and Hospitality Industry Financial Performance Before and After COVID-19

Purpose of the study: The COVID-19 pandemic has made the tourism sector unstable, where during the COVID-19 pandemic, the tourism industry faced several risks such as decreased revenue and operating profits, this decline certainly affected the company's financial performance. This study aims to explore and describe the trends and evolution of the latest academic literature on the financial performance of the tourism industry before and after the COVID-19 pandemic which were published as relevant articles. Design/methodology: This study uses the concept of literature review using the Systematic Literature Review (SLR) technique. The Systematic Literature Review technique is an important feature of academic research. By summarizing, analyzing, and synthesizing a group of related literature, can test certain hypotheses and/or develop new theories. Findings: The results of the study show that the financial performance of the tourism industry before and after COVID-19 is dominant using profitability ratio measurements. Research limitations/Implications: One limitation of this study is the reliance on secondary data sources for the literature review. As the study uses the Systematic Literature Review (SLR) technique, it may be limited by the availability and quality of existing literature on the financial performance of the tourism industry before and after the COVID-19 pandemic. Novelty/Originality of the study: This research can be used as material for consideration for conducting further research on the financial performance using activity ratios and market ratios.

The Effect of Third Party Funds on Rural Banks (BPR) Profitability With Lending Interest Rate as a Moderation Variable Period 2017 - 2022

Savings or other comparable kinds of deposits are accepted by BPR as a bank financial institution, which then distributes the money to BPR firms. To ascertain the state of the bank, it is necessary to evaluate banks as businesses. The profitability performance can be used to determine whether or not the banking industry's financial performance is sound. With loan rates serving as a moderating variable, this study attempts to present empirical data about the impact of Third Party Funds (DPK) on the Profitability of Rural Banks (BPR). The data used in this study were collected at OJK between 2017 and 2022. Explanatory research, which employs a quantitative methodology, is what this study is about every BPR in Indonesia who is registered and documented in the Indonesian Banking Statistics at OJK including the study's population. Samples were taken using a non-probability sampling methodology and a purposive sampling method. With the aid of the statistical application SPSS version 24, moderate regression analysis (MRA) was employed for data analysis. The study's findings demonstrated that third-party funds significantly impact rural banks' (BPR) profitability. Also, it was shown that interest rates had a considerable impact on rural banks' (BPR) profitability. Finally, Third Party Funds significantly impact profitability, with the effect being tempered by interest rates at Rural Banks (BPR).

Is intellectual capital related to telecommunications industry financial performance during COVID-19

Is intellectual capital related to telecommunications industry financial performance during COVID-19

Is intellectual capital related to telecommunications industry financial performance during COVID-19

This study aims to examine the influence of intellectual capital on the financial performance of the telecommunications industry during the COVID-19 pandemic. The population includes the telecommunications companies listed on the Indonesia Stock Exchange in 2019-2020. Moreover, the intellectual capital performance was measured by the value-added intellectual capital coefficient (VAICTM) approach while the model was developed and hypotheses tested using linear regression analysis. The results showed that intellectual capital has a positive and significant effect on return on assets and return on equity but has no influence on earning per share. Recommendations are later made for researchers and practitioners.

Financial performance evaluation of Chinese smart logistics enterprises

Under the background of "Industry 4.0" and "Internet +" development, the intelligent logistics system is the only way for the development and transformation of China's logistics industry. However, at present, the scientific research investment and intelligent equipment purchase and repair costs of the smart logistics transformation of logistics companies is huge, and it is difficult to maintain the balance between the production cost and profit. Therefore, how to evaluate objectively, fairly and effectively the business performance of enterprises has become an urgent problem to be solved by China's smart logistics enterprises. Based on this, this paper selects the wisdom of 18 listed companies in the logistics industry financial performance evaluation, financial indicators and the financial indicators for soft, respectively from five different dimensions to establish index system, using the entropy method of objective evaluation, finally get the enterprise financial performance evaluation, and according to the industry situation put forward the corresponding policy Suggestions.

Effect of Cash Management on the Retail Industry's Financial Performance

For all firms to improve their financial management and ensure their financial sustainability, cash management is essential. Each organization needs to use sophisticated cash management procedures in order to achieve its goals. The retail sector is also one of the most important for the growth of the Philippine economy and the creation of jobs, thus this study looked empirically at the impact of cash management on the financial performance of the sector over a five-year period, from 2016 to 2021. To determine whether cash management has had an effect on these five (5) significant retails organizations' financial performance, the study looks at their financial statements. The data was gathered from each retail company's financial statement and website on the Philippine Stock Exchange Edge website. The study used the cash management ratio, or Cash Ratio (CR), as the independent variable, and the financial performance ratios, or Return on Assets (ROA), Return on Equity (ROE), and Net Profit Ratio, as the dependent variables. In order to ascertain the correlations between different aspects of cash management and financial success, numerous regression and correlation analysis on the data were performed. The research found that the selected five (5) retail enterprises' financial performance was positively but marginally impacted by the Cash Ratio. The report thus advises that these key firms in the Philippine retail sector execute their cash management effectively in a way that enhances financial success.

The Effect of Propping on the Performance of the Financial Industry in Indonesia

This study aims to determine the effect of related party transactions propping on the financial industry's financial performance and performance market performance. This research sample is 66 financial industry companies listed on the Stock Exchange Indonesia (IDX) during 2017-2019 with 198 observations as panel data. Based on the panel data regression test, this research found propping proxied by related party transactions account payables, related party transactions with other payables and related party transactions liabilities other than account payables do not positively affect the company's financial performance (ROA). Propping is proxied by related party transactions, account payables, and liabilities other than account payables do not positively affect the market performance of industrial companies' finance. Meanwhile, propping proxied by transactions of other debt-related parties positively affects financial industry companies' market performance (Tobin's Q). The findings align with transaction cost theory and the efficient transaction hypothesis that related party transactions are efficient transactions to boost company performance.

DAMPAK MANAJEMEN RISIKO PADA KINERJA KEUANGAN BANK UMUM KONVENSIONAL DI INDONESIA

Abstract This study was conducted to examine the impact of risk management on the financial performance of conventional banks in Indonesia. Effective and efficient banking industry financial performance from time to time is highly expected to maintain banking financial stability itself and even the stability of a country. The increase in losses borne by banks as a result of inadequate risk management practices is a major concern of bank management and regulators. The data tested in this study is conventional bank data that listed on the Indonesia Stock Exchange during the 2015-2019 period. Data analysis using Multiple Linear Regression Model. The results show that there is a significant relationship between market risk management (NIM), operational risk management (BOPO) and liquidity risk management (LDR) with bank financial performance (ROA). Meanwhile, credit risk management (NPL) has no effect on bank financial performance (ROA). For this reason, it can be said that adequate risk management practices as demonstrated by the ratio of interest rate risk, liquidity risk and operational risk are the main driving factors for profitability for the banking sector in Indonesia. Therefore, bank management must mobilize resources to understand a sound risk management system which in turn will have an impact on improving the bank's financial performance.Keywords: Conventional Banks, Risk Management, Financial Performance.

Is environmental innovation contagious? A study on the mechanism of individual firms' environmental innovation affecting the industry

AbstractBased on the social network theory, this paper examined the contagion effect of a firm's environmental innovation on the industry. We selected the firm's ownership as the moderator variable and industry's financial performance as the mediator variable. Multiple regression analysis was used to test the model with the data of 1,588 listed firms among 28 industries in the Chinese manufacturing sector between 2012 and 2018. The results showed that the individual firm's environmental innovation had a contagion effect on the environmental innovation of other firms in the same industry, that is, the higher the degree of individual firms' environmental innovation, the higher the degree of environmental innovation will be in other firms. Further research indicates that the firm's ownership structure affects the environmental innovation contagion mechanism: when individual firms are privately owned, the contagion effect is stronger. In addition, the individual firm's environmental innovation undercut the financial performance of other firms in the same industry, which, in turn, promotes environmental innovation among these firms.

Analysis of Financial Performances of Hospital Services Subsector By ELECTRE Method

Measuring and evaluating financial performance in healthcare enterprises is important for decision-makers to evaluate the past and comment on the future. In this study, Turkey hospital services of the sub-sectors of evaluate the financial performance are aimed. For this purpose, the Republic of Turkey's financial performance with ELECTRE method that the Central Bank released was that the industry's financial performance between the data with the help of hospital services sub-sectors of the 2008-2016 years are taken from the balance sheet of the multi-criteria decision-making methods were measured. As a result, Turkey hospital services sub-sectors of the 9-years financial performance is evaluated, starting from the years of exchange between hospital services sub-sectors will contribute to the users about the results we have tried to be included.

Implementation of Enterprise Risk Management Practices in Organizations: An Empirical Analysis of Takaful Industry Financial Performance

Implementation of Enterprise Risk Management Practices in Organizations: An Empirical Analysis of Takaful Industry Financial Performance

Financial Performance of The Tourism Industry in Indonesia and Asean Countries from the Stakeholder Perspektive

Tourism industrial financial performance is important to be studied because the contribution of the tourism sector in Indonesia is still very small to GDP, earnings volatility in the tourism industry is strongly influenced by global economic conditions, especially foreign tourist visits from countries with slowing or crisis economic. This study will examine the influence of stakeholder responsibility on financial performance by using samples of the tourism industry in the ASEAN region. The stakeholders’ influence studied are the responsibility to shareholders, government, creditors, suppliers, employees and customers.The population in this study was the tourism companies in five ASEAN countries which are in the top five categories of tourism performance. The population of the study was 52 companies consisting of 13 companies from Singapore, four companies from Malaysia, eight companies from Thailand, four companies from Indonesia and 23 companies from Sri Lanka. The sampling method used purposive sampling while the data analysis method used multiple regression analysis. The results of the regression analysis show that the responsibilities to the creditors and customers have a significant effect on the company’s performance. Meanwhile, the responsibilities to the shareholders, government, employees, suppliers, and company size have no significant influence on the company’s financial performance.

The Impact of the Adoption of Enterprise Risk Management on the Industrial Financial Performance

Enterprise risk management (ERM) has gained an increased attention during the recent past as an integrated approach to manage risk for creating and preserving firm value. The objective of this study is to explore and empirically verify as to whether the adoption of the ERM has an impact on the firm performance. This study uses both primary and secondary data pertaining to 129 companies listed on the Colombo Stock Exchange under the banking & finance, insurance, diversified, manufacturing, food and beverage and chemical and pharmaceutical sectors. Primary and secondary data are collected by distributing a survey questionnaire and analyzing the published financial statements of the observing companies. Researcher adopts ERM integrated framework suggested by the committee of sponsoring organization (COSO) of the Treadway Commission of the USA to assess the value relevance of ERM and uses return on equity (ROE) as a proxy to measure the firm performance. This study finds, except for control activities, none of the key ERM functions, suggested by the COSO’s ERM integrated framework, has a significant impact on the performance of listed companies. Internal environment, objective setting, and information & communication indicated a weak positive impact on the firm performance. Nevertheless, none of those impacts were statistically significant. Empirical evidence reveals that firms’ risk responding strategies have no impact on the performance. Surprisingly, monitoring of ERM functions has weak negative, but not significant, impact on the firm performance. These findings are contradictory with the theoretical expectation that the adoption of ERM practices has a positive impact on firm performance as confirmed by the prior researchers.

Industry-Level Analysis of Information Technology Return and Risk: What Explains the Variation?

Motivated by the wide dispersion in the returns on the use of information technology (IT) across industries, we conduct an industry-level examination of IT return and risk, focusing on the moderating role of industry competition, regulation, and technological change. We address the following research questions: What is the impact of IT investment on the return and risk dimensions of industry financial performance? How do industry characteristics moderate the relationship between IT investment and industry performance? Our analysis of these questions finds that higher levels of industry competition are associated with higher IT productivity (contribution of IT to value-added output), lower IT profitability (contribution of IT to industry average return on assets [ROA]), and higher IT risk (contribution of IT to ex ante variability of ROA). This is consistent with the notion that competition induces riskier IT investments, despite the fact that returns tend to be competed away. Higher levels of industry regulation are associated with lower IT returns in both productivity and profitability, but also lower IT risk. Finally, a higher rate of technological change induces both higher IT returns and higher IT risk. A variety of tests indicate that our results are robust. Our results shed light on factors that drive variation in IT performance across industries, and provide useful industry-level performance benchmarks of the return and risk impacts of IT investments.

Pharmaceutical industry financial performance

Pharmaceutical industry financial performance

Public Sector Reform in Australia: An Evaluation of the Corporatisation of Sydney Water, 1995 to 2002

The corporatisation of Sydney Water from 1995 onwards formed part of a much broader process of public sector reform in Australia. However, Sydney Water represents an unusual case study of corporatisation since it has embodied two distinct forms of corporate structure over the period 1995 to 2002; both the company model and the statutory model. This article seeks to evaluate the success or otherwise of this corporatisation process using ‘internal’ measures of the performance appraisals undertaken by ‘outside’ bodies in six main forums: The independent assessments against operating licence conditions; NSW government's annual assessments of government businesses performance; Sydney Water's own performance measurement against corporate business plans; water reform measures stipulated by the Council of Australian Governments; industry financial performance indicators as measured by the Water Services Association of Australia; and an international assessment conducted by the UK Office of Water Services.

Capital structure in the world airline industry

This article presents a managerial approach to the airline capital structure through a definition of an efficient frontier. To develop the analysis a technique called data envelopment analysis was used. This paper tests the hypothesis that airline industry's financial performance depends on companies keeping a reasonable level of leverage and also seeks to establish this level. The research identifies the biggest airline companies which use capital efficiently to generate return with a low level of fixed assets. In these companies, shareholders' capital represents at least 40% of all funds employed. It could be seen by simplifying the analysis that it is possible to identify the most and the least efficient companies by studying their indebtedness and return on assets. A large proportion of the companies are moving to reduce their level of indebtedness and raise their returns over the course of time. The analysis by country revealed that countries do not offer comparative advantages, with the companies' performance depending fundamentally on their management.

Priorities and performance don't always jibe

Does an industry's financial performance reflect its top management's expressed business priorities? A recent study of manufacturing companies in the Process‐Control Instrumentation Industry showed a significant difference between performance and stated priorities.