Company Level Research Articles

Prediction of Financial Distress Levels in State-Owned Cipta Karya Companies Using the Altman Z-Score, Springate, and Zmijewski Models

Prediction of Financial Distress Levels in State-Owned Cipta Karya Companies Using the Altman Z-Score, Springate, and Zmijewski Models

FINANCIAL RATIO ANALYSIS AS A TOOL FOR MEASURING FINANCIAL PERFORMANCE IN PT. BATURAJA CEMENT (PERSERO)

The financial performance of PT Semen Baturaja (Persero) for the period 2020-2022 needs to be evaluated to determine the effectiveness of management in managing the company's finances. The purpose of the study is to measure the financial performance of PT Semen Baturaja (Persero) through financial statement analysis over the period 2020, 2021, and 2022. This study uses various types of financial ratios such as Liquidity, Solvency, and Profitability. The research method used is qualitative with a quantitative approach. The data used is sourced from the financial statements of PT Semen Baturaja (Persero) Tbk for the years 2020, 2021, and 2022, obtained from the Indonesia Stock Exchange. The analysis results show that the company has good liquidity because current assets are higher than current liabilities. The solvency ratio level is quite healthy. Although the Debt to Asset Ratio (DAR) indicates high debt, the low Debt to Equity Ratio (DER) values show that most of the assets are still funded by equity. The company's profitability level is less healthy. Although the Gross Profit Margin (GPM) shows positive results and is higher than the industry average, other ratios such as Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE) indicate that the company has significant room for improvement in operational efficiency, cost management, and optimization of asset and equity utilization. Keywords: Analysis, Liquidity, Solvency, Profitability

Analysis Of Efficiency Level In Indonesian Banking Companies Listed On The Indonesian Stock Exchange For The 2019-2022 Period

This study analyzes the efficiency levels of Indonesian banking companies listed on the Indonesian Stock Exchange (IDX) during the period of 2019-2022, encompassing the impact of the Covid-19 pandemic. Efficiency in banking is crucial for maintaining competitive advantage and ensuring financial stability, especially in the face of global challenges such as economic globalization and digitalization. The research evaluates the efficiency of banks using indicators like the CAMEL method, BOPO, NIM, NPL, LDR, and CAR ratios. The study finds that the pandemic significantly affected banks' efficiency, with notable declines in NIM and ROA ratios due to economic uncertainty and operational cost challenges. Post-pandemic, these ratios have shown signs of stabilization. The study uses descriptive quantitative methods, analyzing secondary data from annual financial reports of eight banking companies listed on IDX. The results indicate that strategic measures in risk management and cost efficiency are imperative for banks to navigate future uncertainties.

Do competitive strategies affect working capital management efficiency?

PurposeThis study examines the effects of CLS and DS on companies' WCME and analyses the differences in WCME at company and market levels.Design/methodology/approachThis study adopts the DEA approach, regression, differences, and additional analyses to achieve its objectives. This study employs 235 non-financial companies and 1,175 company-year observations from eight active industries in the United States from 2016 to 2020.FindingsThe findings indicate that CLS and DS strategies positively influence companies' WCME. Additionally, WCME differed across size categories and industries, with large companies and those operating in the communication services industry showing better WCME. By contrast, WCME did not differ between the periods before and during the COVID-19 pandemic.Practical implicationsThis study scrutinizes the impact of CLS and DS strategies on companies' WCME to bridge the gap in this field. It extends the investigation of competitive strategies as explanatory variables for a company's WCME and examines the differences in companies' WCME at the company and market levels, which may assist decision-makers in improving their strategies and efficiencies for continuous improvement.Originality/valueThis study enhances current knowledge by uncovering the influence of CLS and DS strategies on improving companies' WCME, an underexplored topic. It also explores companies' WCME trends and patterns regarding company size, industry type, and the pandemic period to draw interesting conclusions about the essence of WCME.

Environmental regulation and labor demand: Evidence from China's air pollution prevention and Control Action Plan

In response to environmental regulatory pressure from the government, enterprises – as the main employers of labor – adjust their production-related choices and may alter their demand for labor. Numerous researches have probed into how environmental regulations affect the labor demand, which has emerged as a significant concern in the discourse around the adoption of environmental regulation policies. Nonetheless, many researches predominantly concentrates on the evaluation on the effects of environmental regulations on economic and environmental levels. Moreover, rare attention has been paid to how environmental regulations affect social activities, especially in terms of labor demands. As a result, the Air Pollution Prevention and Control Action Plan (APPCAP) is adopted as a “quasi-natural experiment” and a difference-in-differences model is employed to analyze the effects of the APPCAP on labor demands of companies. Hence, the 2008–2020 panel data are considered for the 3,949 Chinese A-share listed enterprises. Furthermore, this paper probes deeply into the underlying mechanisms based on mediation models. The following findings are thus concluded: (1) The labor demands of enterprises can be remarkably increased by APPCAP; and the result is still persuasive even though the endogeneity issues are taken into account. (2) APPCAP improves enterprise labor demand through the output and factor substitution effects. (3) As evidently revealed by heterogeneity analysis, the APPCAP could significant positive affect the labor demand size in state-owned companies, large-scale companies, new companies, and companies in polluting industries. (4) The APPCAP strikingly boosts the demand for labor force with high skills. Nevertheless, it exerts little influence on the demand for labor force with low skills and company salary levels. Therefore, the government must continue to steadfastly implement environmental regulatory policies but adopt different policies based on enterprise characteristics. Overall, this study provides micro-level experimental evidence for more in-depth understanding of how environmental policies affect labor market, which is particularly important for actively resolving social employment problems and exploring new growth points in enterprise employment.

Assessing the effects of logistics performance on export and competitiveness using SEM methodology: evidence from firm-level data

PurposeThe purpose of the paper is to determine the importance of trade logistics in export intensification and competitiveness on the level of individual companies. Within the framework of logistics performance, the influences of customs efficiency and physical trade infrastructure quality were tested on export while the contribution to improving competitiveness was analyzed through logistics services and the Logistics 4.0 component. In addition, the influence of competitiveness on companies’ exports was examined.Design/methodology/approachThe research was conducted based on a survey intended for the management of export-oriented companies which was distributed through the system of the Chamber of Commerce and Industry of Serbia. A total of 298 responses were collected and provided the basis for the application of structural equation modeling (SEM) approach.FindingsThe physical trade infrastructure was found to be a significant factor in stimulating exports, while the quality of logistics services has a statistically significant impact on the level of competitiveness. The results also indicate that improving the competitiveness of companies gives positive results in stimulating their exports.Originality/valueStudies that analyze the impact of trade logistics using primary data from surveys are rare. In this paper, for the first time, the SEM methodology was applied in the assessment of logistics performance effects on export and competitiveness of individual companies. Also, the impact of the logistics 4.0 concept on selected companies’ performance was empirically tested for the first time.

DreMoWabe – Dresdner Modell der Wandlungsbefähigung

Abstract The Dresden Model of Adaptability (DreMoWabe for short) presents key aspects of the human-technology-organization approach and the transformation enablers commonly found in the Literature. Together with the design levels of networked value creation, company level, factory planning, human-machine interaction and machine level identified as essential, this results in a three-dimensional structure. It thus serves as a reference and regulatory framework to enable production companies to describe and evaluate their own adaptability in a model and to react more quickly to changes in the production environment on the basis of criteria and corresponding recommendations.

Comparative Analysis of CO2 Emissions, Fuel Consumption, and Fuel Costs of Diesel and Hybrid Dredger Ship Engines

There is a consensus on the need to reduce the emissions of carbon compounds. The increase in global greenhouse gas (GHG) emissions in the maritime industry poses a serious challenge to environmental sustainability, climate change, and the operating costs of ships. This article shows how hybrid versus diesel propulsion technology for ships can help reduce carbon dioxide (CO2) emissions and fuel consumption, and how these changes can be achieved. The need to reduce exhaust emissions and the increasing need for the shipping industry to seek alternative fuels means that existing regulations for marine engines and engine emissions are being updated almost constantly and new regulations are being formulated. The cost implications of the new regulations may lead to an increase in emissions as engines with lower fuel consumption are chosen, i.e., larger marine engines. Alternative approaches are needed to reduce CO2 emissions and fuel consumption, which could ultimately lead to hybrid propulsion for ships. This paper examines the current state of greenhouse gas emissions in shipping by analyzing the CO2 emissions and operating costs of two ships of the same type with similar technical and technological characteristics and different propulsion systems to gain insight into the problem. This paper compares the reductions in CO2 emissions, fuel consumption, and fuel costs for two suction hopper dredgers with standard diesel and hybrid propulsion. The technical characteristics, CO2 emissions, fuel consumption, and price of the two ships were analyzed to determine the advantages and disadvantages of each propulsion system. The novelty of this study is that two suction hopper dredgers from the same company with similar technical–technological characteristics but different propulsion systems were used for the case study and a mathematical procedure for calculating CO2 and other greenhouse gasses was presented in comparison, all to determine to what extent and in what way the hybrid propulsion system of a ship can contribute to reductions in CO2 emissions and fuel costs at the ship and company levels compared to a standard diesel propulsion system. This comparative analysis shows how much lower CO2 emissions, fuel consumption, and fuel cost savings can be expected when using a hybrid propulsion system compared to a standard diesel propulsion system. Finally, a conclusion is drawn on the efficiency and environmental compatibility of the two systems.

The The Effect of Profitability, Leverage, Liquidity, Firm Growth on Dividend Policy with Firm Size as Moderating Variable in infrastructure companies listed on The Indonesian Stock Exchange period 2018-2022

This research aims to determine the effect of profitability, leverage, liquidity, and firm growth on dividend policy with firm size as a moderating variable in infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) period 2018-2022. The type of data used is quantitative data from secondary sources. The population in this study is 61 infrastructure sector companies listed on the IDX from 2018 to 2022. The purposive sampling technique was used to determine the research sample, and 24 companies were obtained as the research sample. The data analysis technique used is path analysis with AMOS 24 software. The results of the study show that profitability, leverage, and firm growth do not have a significant effect on dividend policy. Liquidity has a significant positive effect on dividend policy. Firm size cannot significantly moderate the effect of profitability and leverage on dividend policy. Firm size can weaken the effect of liquidity on dividend policy. Therefore, companies in the infrastructure sector must pay attention to the company's liquidity level because it can positively affect the amount of dividend payments. Especially for large companies, they must maintain their liquidity level to remain optimal because a high level of liquidity does not guarantee that a company can easily pay dividends to shareholders.

Blockchain Adoption in Networks: The Decision Flow through three Arenas

Aim/Purpose: To show how the adoption decision about blockchain technology follows a path through three ‘arenas’, each showing distinctive organisational and behavioural driving forces. Methodology: Grounded theory using Meta-analysis, mind mapping, participative observation and 22 Atlas.ti analysed interviews. Findings: Three ‘arenas’ were observed: (#1) visualises the driving forces, motivations and reasons that play a role in the mind of the decision making individual and is the result of the conditioning process occurred during the trajectory through networks during the life and career of that individual; (#2) reflects and incorporates the transition from the individual level decision making to the company level, meeting other decision makers. The worldview, power and hierarchy dynamics among the company's decision-making leadership directly shape the overall company strategy. This strategizing, in turn, leads to particular outcomes and effects on the company's network and connections; (#3) describes the constituting elements and origins of power that play a role for four different types of networks: long term relations, consortia, exploitative networks and spot buying networks. Originality: This study offers an original view on innovation adoption processes in supply chains, networks and systems, applied to the case of blockchain technology. Conclusions: Blockchain usage seems mainly relevant for networks based on long-term relations, not so much for consortia, exploitative networks and spot buying networks. Which network a company choses to participate in depends on the worldview of the company as a result of the distribution of hierarchies of the participating decision makers. In addition, an increased company size implies an increased feeling blockchain usage would or could compensate lack of trust because of less personal contacts.

The influence of coercive pressures on reporting on SDGs during the COVID‐19 pandemic: An international study

AbstractThe sustainable development goals (SDGs) are recognized as global development guidelines for 2030. The accounting profession can contribute to achieving these goals by encouraging reporting on SDGs at the company level. The increasing awareness of the contribution of businesses to the achievement of the SDGs is one of the reasons for the improvement in the practice of reporting by companies. This research is secondary data‐based accounting research that aims to analyze the quality of reporting on SDGs and whether coercive pressures in the form of regulatory quality, sustainability regulations, and the strength of audit and reporting standards were determinants of the quality of reporting on SDGs in the era of the COVID‐19 pandemic. The results of this study show that, on average, companies reported on 10 of the SDGs (56% of the 17) during the COVID‐19 pandemic. Further, this study found that coercive pressures in the form of regulatory quality, sustainability regulations, and the strength of audit and reporting standards positively affected the quality of reporting at the country and company levels. These results may imply that reporting on SDGs in the pandemic era was defensive reporting that sought to maintain legitimacy and was mainly driven by formal pressures.

Determinants of the Financial Health of Deposit Guarantee Corporation in the Pandemic Era (Case Study at PT. XYZ Sharia)

PT. XYZ Sharia is a deposit guarantee corporation (“Lembaga Penjamin”), which obliged to maintain its financial health as explained in the Financial Services Authority Circular Letter Number 18/SEOJK.05/2018. During the pandemic era PT. XYZ Sharia is faced with strategic issues relating to the implementation of more effective risk management. This is expected to provide protection for the company against losses and maintain the company's financial health level in the very healthy category. This research aims to analyze the significance of liquidity calculations, Gearing Ratio, ROA, BOPO and claims ratio on the level of financial health of PT XYZ Sharia. The research used multiple linear regression analysis. The data are secondary data originating from the financial reports of PT XYZ Sharia for 2021-2022. The research found that the Gearing Ratio and BOPO had positive and significant effects on the company's health level. Simultaneously, liquidity, Gearing Ratio, ROA, BOPO and Claims Ratio have a significant effect on the company's financial health level. Keywords: BOPO, Claims Ratio, Deposit Guarantee Companies, Financial Health, Gearing Ratio, JEL Classifications: G23, I12, Liquidity, ROA.

Dynamics of circular business development: The case of social clothing recycle

AbstractNowadays, scholars and policymakers see circular economy (CE) as a relevant paradigm to pursue sustainability. Despite the mushrooming literature on CE, management studies lack in describing CE implementation features at a firm level and the driving forces for circular conversion. This paper thus seeks to investigate the key dynamics occurring in native circular firms to support hypotheses generation on the development and diffusion of circular business models. For this purpose, two representative case studies in the social clothing sector have been performed with a qualitative and participative approach, making use of system dynamics (SD) tools. Cases' narrative and embedded SD causal structures depict the organization's business, environmental, social and educational features. The model illustrates self‐reinforcing dynamics of circular consumptions and sales, organizational capacity building and consumer conversion to circularity. Composite learning mechanisms and educational initiatives catalyse the commercial business and disclose a role for circular companies in the affirmation of CE as an alternative paradigm to the linear economy. Furthermore, case‐based inductive understanding is discussed through a typological matrix that contains a classification of CE businesses. Overall, the paper attempts to contribute to the management field by describing the development dynamics of CE business models. The case studies, faced with an SD approach, provide insights on implementation mechanisms of CE at a company level and are the basis of new hypotheses generation on circular development and conversion.

A review of scientific papers on business model innovation, multi-level business model hypothesis

The author presents a detailed analysis of current views on the issue of business model innovation in foreign and Russian scientific sources. The main ideas and theses in this area are reflected, and an attempt is made to find general trends. Current scientific works of authors from different countries have been studied — mainly over the past 10 years. Most of the publications analyzed in the article were made in Scopus, Web Of Science (English-language) and VAK (Russian-language) journals. Both well-known popular sources with a high citation rate, as well as completely new publications, which, however, presented original ideas, were analyzed. An attempt was made not only to reflect the points of view of different authors, but also to show how scientific thought in the field of business model innovation is developing in different regions of the world. Based on the results of the study, the author put forward a hypothesis about the multi-level nature of the business model. It is proposed to consider at least 3 levels of the business model: the holding (parent) company level (level 1), the level of an individual organization/business unit (level 2), and the product-market level (level 3). The directions for future research arising from this hypothesis are outlined: defining the levels in the business model, clarifying the content of this concept at each level, establishing clear boundaries between the business model and the organization's strategy. The study was carried out as part of the work on the development of the Russian scientific school of business modeling and strategic management, which is carried out at the scientific institute «Eurasian Management and Administration School» (EMAS Business School).

Institutional isomorphism and quality of gender disclosure. The Italian case

Purpose: Non-financial reporting (NFR), including gender disclosure (GD), is a tool companies use for institutional legitimisation and represents an organisational field that evolves due to regulatory and stakeholder pressure. This research uses the theoretical approach of institutional isomorphism in the context of neo-institutional theory to investigate GD's degree of maturity (quality and homogenei-ty) in a homogeneous institutional context. Design/methodology/approach: This paper adopts a qualitative research meth-odology based on a content analysis of the GD resulting from the NFRs of listed Italian companies in 2016 and 2021. Findings: The results show the degree of institutionalisation achieved through GD after introducing the mandatory NFR. The analysis reveals companies' conver-gence process in terms of isomorphic behaviour and changes in the quality of GD. The findings unfold the institutional pressure that has the most significant impact on the quality of GD, fostering a homogenisation of disclosure at the company level. Originality/value: This is the first study to assess isomorphism and its effects on the quality of GD. This research enriches the literature on institutional theory by analysing the impact of different isomorphic forces on GD. Practical implications: This paper assists policymakers, supervisors, and investors in evaluating the quality of GD and identifying the issues leading to the most critical matters and inefficient or non-transparent behaviours. The findings improve regulatory quality, information control, and assessment of the appropriateness and reliability of the NFR. The implications guide regulators in identifying stand-ards and tools that enhance strategies regarding gender diversity and performance disclosure.

Turning the State-Owned Enterprises from a Burden into an Opportunity for Economic Development

The sector of state-owned enterprises (SOEs)1 in the Republic of Moldova is plagued by the problem of weak governance, both at the state level (regulations and policies) and at the company level. As a result, the financial and operational performance of SOEs over the last years has been in continuous decline. However, state-owned enterprises can be transformed from a burden for Moldova’s economic development into a source of opportunities and tools that could generate a number of important economic reforms. The results of the given research demonstrate that state-owned enterprises have the potential to serve as important channels for attracting private investment, boost capital market development, develop and promote new financial instruments, strengthen state security and fortify strategic infrastructure.

Эффективность преференциального режима для предприятий российской Арк­тики: инструментарий и результаты оценки

The preferential regime for business activities in the Russian Arctic is a new regulatory mechanism that requires monitoring of implementation and evaluation of effectiveness. The issues of the effects of preferential treatment at the enterprise level fail essential study, which complicates the further development of this regulatory instrument. The authors focus their study at developing and testing tools for assessing the effectiveness of the preferential regime at the level of hotel companies, as well as identifying general trends in the implementation of the regulatory mechanism. They reveal that the revenue of resident companies have increased by an average of 4.6 times since receiving the status. In the structure of production factors, there is an increase in the importance of the labor factor in generating revenue for new resident companies and an increase in the importance of the capital factor for old resident companies (opened before 2020). The value of projects of new residents for the development of the local regions may be largely associated with the implementation of the function of the labor market social stabilization. The significance of the projects of “old residents” for the local regions lies in the intensification of the development of propulsion industries and specialization industries.

Financial performance and capital structure – an econometric approach for Romanian e-commerce companies during the COVID-19 pandemic

The study investigates the inverse relationship between financial performance and capital structure for the Romanian B2C e-commerce companies, based on a representative sample of 437 companies active in the period 2005–2020. Statistical analyzes show the evolution of financial performance and the impact of the COVID-19 pandemic on it, depending on the company category. All company categories had better financial performance in 2020 compared to 2019, based on sample results. The study reveals valid reference values for the financial ratios of Romanian electronic commerce, being a model to be applied in any industry. The analysis of the causality of the financial variables and their correlations, on the sub-periods 2005–2008 and 2009–2020, both at the company category level and at the sample level, are the basis of the GMM approach. The econometric models Difference GMM and System GMM explain the relationship between financial performance and capital structure leading to interesting conclusions. As e-commerce has a sustainable development, the findings and conclusions of the study provide guidance for economic policies at the sectoral level. Financial performance in relation to strategic debt management depends on the company category. Stimulating the development of those categories of companies that ensure the efficient performance framework can be the key to a sustainable development of the national economy. The study is useful for managers, investors, financial analysts, decision makers, in financial education as well as for the banking system.

Reskilling for the future: Enabling colleagues with a digital mindset who are ready for a future global digital era and platforms

This paper explores the effect of digital skills at the individual, company and national levels to meet the digital era. UK and European Union based case studies are utilised to fully understand how jurisdictions are preparing stakeholders with confidence and digital tools capability and mindsets. The paper explores how large financial services employers and EdTech are striving to meet the challenges of the accelerating digital era. Finally, it aims to further encourage momentum to close the gap in digital skills by preparing stakeholders for success in the digital age. It concludes that the option of not evolving with technologies and data through new digital skills is no longer feasible for successful careers and industries.

Effect of centralized volume-based procurement of drugs on business performance of listed pharmaceutical enterprises

Since March 2018, China has conducted five rounds of negotiations for the inclusion of drugs in the medical insurance system and implemented eight batches of centralized drug procurement. The role of the medical insurance department as a strategic purchaser in the pharmaceutical market has been continuously strengthened, playing a crucial role in controlling the unreasonable growth of medical expenses and reducing the economic burden on patients. The policy of centralized drug procurement, by exchanging quantity for price, can significantly reduce drug prices and lower the profit level of companies. However, being included in the centralized drug procurement catalog can bring a substantial and stable market share to the winning companies. Therefore, the impact of the centralized drug procurement policy on the operational performance of winning companies and how their business decisions should be adjusted remain to be thoroughly explored from both theoretical and empirical perspectives. To assess the impact of the centralized drug procurement policy on the operational performance of companies, this study takes publicly listed pharmaceutical manufacturing companies from 2016 to 2020 as the sample and conducts empirical analysis using methods such as difference in difference (propensity score) matching (PSM-DID). The results showed that the centralized volume-based procurement of drugs policy had a significant negative impact on the business performance of bidding listed pharmaceutical manufacturing companies, indicating that the increase in the sales of bidding drugs could not fully make up for the profit loss caused by the price reduction in the short term. Pharmaceutical manufacturing companies should further adjust their market competition strategies, actively engage in research and development innovation. The government should guide pharmaceutical companies to improve their operational performance while ensuring the quality of drug supply by optimizing the supporting innovative incentive policies in the centralized drug procurement policy.