Financial Performance Measures Research Articles

Firm Size as a Mediator between Inventory Management Andperformance of Nigerian Companies

This study employed a dissimilar methodology in investigating the mediating role of firm size on the relationship between inventory management and performance of non-finance companies publicly listed on the Nigerian Exchange Group. The study was hinged on just-in-time paradigm while variables of inventory management and financial performance were obtained from the annual reports and accounts of 76 non-finance companies. The results obtained from the structural equation modelling showed that size of firm mediates on the relationship between inventory management and financial performance measures of the study and it was found to be significantly positive. On the basis of this, it was suggested that companies need to strengthen inventory management practices as well as increasing their sizes. The size of companies can be increased by way of investing more funds in their asset structures.

Social Responsibility and Financial Performance in The Covid-19 era: Support for the Experience of Moroccan SMB

Objective: The objective seems to be to explore the importance of the concept of Corporate Social Responsibility (CSR) as a means of crisis management and performance lever allowing companies to withstand current financial and economic shocks. Theoretical Framework: The text mentions the intention to provide a historical overview of CSR, define CSR, financial performance, SMB, the role of SMB on economic growth, and cite organizational theories related to the importance of CSR in times of crisis. This section constitutes the theoretical framework by linking CSR to different economic concepts and organizational theories. Method: this article suggests a theoretical and descriptive approach, analyzing the economic impact of health measures and proposing recommendations, which involves documentary and theoretical analysis. Results and Discussion: The text focuses on presenting the topic and theoretical framework without providing specific results or data analyses. Research Implications: e research aims to highlight the importance of CSR for crisis management and financial performance of companies, particularly in the context of the COVID-19 crisis. The implications could concern strategies business, public policy, and managerial theory. Originality/Value: The originality of this research could lie in its analysis of the impact of CSR during the COVID-19 crisis, a relatively new and current topic. The combination of crisis management, financial performance and health measures from the perspective of CSR can constitute an original contribution to the existing literature on the subject.

Financial Performance and Total Resources: Trend and sensitivity Analysis of Indian Oil Exploration and Production Companies

The firms involved in the exploration and production (E&P) of natural gas resources and crude oil play a crucial role in the energy sector and contribute to the economy. Exploration and production refer to discovering, drilling, and extracting natural gas resources and crude oil from beneath the earth’s surface. Exploration and production firms provide a base for the downstream companies to make crude oil consumable. The financial performance of the downstream companies depends on the cost efficiency of the E&P firms. The purpose of the study is to determine the relationship between the total resources and measures of financial performance. The study is based on secondary data and financial ratios, index numbers applied to get the financial performance, and variability of financial performance. Correlation is used to get the trend and quick impact of variability on the total assets on the financial measures in the short and long run. The study found that while return on total resources is positively influenced in the long run, profitability based on sales and short-term paying ability is negatively governed by the absolute quantity of expansion of all available resources. Although the long-term association is positive, there is a short-term lag in the positive increase of the total resources on the ROA. Overall, based on their average absolute amount of total resources, relatively, the mutual study of the mean growth rate of all resources and financial indicators of Indian E&P explore negativity.

Extremes of Emergency Department Boarding are Associated With Poorer Financial Performance Among Hospitals.

Boarding emergency department (ED) patients is associated with reductions in quality of care, patient safety and experience, and ED operational efficiency. However, ED boarding is ultimately reflective of inefficiencies in hospital capacity management. The ability of a hospital to accommodate variability in patient flow presumably affects its financial performance, but this relationship is not well studied. We investigated the relationship between ED boarding and hospital financial performance measures. Our objective was to see if there was an association between key financial measures of business performance and limitations in patient progression efficiency, as evidenced by ED boarding. Cross-sectional ED operational data were collected from the Emergency Department Benchmarking Alliance, a voluntarily self-reporting operational database that includes 54% of EDs in the United States. Freestanding EDs, pediatric EDs and EDs with missing boarding data were excluded. The key operational outcome variable was boarding time. We reviewed the financial information of these nonprofit institutions by accessing their Internal Revenue Service Form 990. We examined standard measures of financial performance, including return on equity, total margin, total asset turnover, and equity multiplier (EM). We studied these associations using quantile regressions of added ED volume, ED admission percentage, urban versus nonurban ED site location, trauma status, and percentage of the population receiving Medicare and Medicaid as covariates in the regression models. Operational data were available for 892 EDs from 31 states. Of those, 127 reported a Form 990 in the year corresponding to the ED boarding measures. Median boarding time across EDs was 148min (interquartile range [IQR]: 100-216). A significant relationship exists between boarding and the EM, along with a negative association with the hospital's total profit margin in the highest-performing hospitals (by profit margin percentage). After adjusting for the covariates in the regression model, we found that for every 10min above 90min of boarding, the mean EM for the top quartile increased from 245.8% to 249.5% (p <.001). In hospitals in the top 90th percentile of total margin, every 10min beyond the median ED boarding interval led to a decrease in total margin of 0.24%. Using the largest available national registry of ED operational data and concordant nonprofit financial reports, higher boarding among the highest-profitability hospitals (i.e., top 10%) is associated with a drag on profit margin, while hospitals with the highest boarding are associated with the highest leverage (i.e., indicated by the EM). These relationships suggest an association between a key ED indicator of hospital capacity management and overall institutional financial performance.

Liquidity, Solvency, and Profitability Ratio Analysis as a Financial Performance Measurement Tool at PT Telkom Indonesia (Persero) Tbk for the Period 2020-2022 (Case Study of Companies Listed on the Indonesia Stock Exchange)

Liquidity, Solvency, and Profitability Ratio Analysis as a Financial Performance Measurement Tool at PT Telkom Indonesia (Persero) Tbk for the Period 2020-2022 (Case Study of Companies Listed on the Indonesia Stock Exchange)

Human capital and financial performance of Islamic banks: a meta-analysis

PurposeThis paper aims to meta-analyze the results of the prior studies related to the relationship of human capital and financial performance in Islamic banking.Design/methodology/approachTo examine the relationship between human capital and financial of Islamic banks, 23 empirical studies having sample of 15,607 are considered for the meta-analysis. Moreover, different measures related to financial performance including return on assets (ROA), return of equity (ROE) and Tobin’s Q have been taken as moderating for further subgroup analysis.FindingsThe results of meta-analysis reveal a positive correlation between human capital and financial performance with an effect size of 0.268. The subgroup analyses showed significant positive associations of human capital with ROA and ROE, insignificant with Tobin’s Q.Originality/valueThis study suggests Islamic banking should prioritize human capital development, maintain consistency and adopt a long-term perspective. Future research should consider context-specific factors and harmonize human capital and financial performance measurements for consensus.

Benefit corporation certification and financial performance: Capital structure matters

AbstractWe are examining the impact of benefit corporation certification on the profitability of UK companies, taking into account their capital structure. We contribute to the literature that scrutinizes the financial ramifications of Benefit Corporation Certification. Analyzing UK Certified Benefit Corporations (CBCs) and their noncertified counterparts using a difference‐in‐differences analysis, we find that the performance of CBCs with a capital structure heavily weighted towards debt declines in comparison to non‐CBCs, using Return on Assets as a measure of financial performance. Conversely, the performance of CBCs with a capital structure primarily composed of equity is comparable to that of non‐CBCs.

Behavior Among Stock Price, Financial Performance, and Financial Distress Evidence from the Australian and New Zealand Stock Exchanges

Objective: The main objective of this study is to investigate the behavior among stock price, financial performance, and financial distress in Australian and New Zealand Stock Exchanges. Similar studies have been done on United States and European markets, but none on Australian and New Zealand Stock Exchanges. Our finding suggested that PE Ratio is not a reliable measure of financial performance in Australian and New Zealand Stock Exchanges. Method: Altman’s Z-score is applied to reflect the financial distress of the large listed firms in Australian Stock Exchange and New Zealand Stock Exchange while expected return on total investment minus the market premium, which is associated with the overall risk of a firm, is used as a proxy to stock price performance. In addition, this study also investigates the various effects on profitability, financial leverage, liquidity, growth, and size factors on stock performance. Results: Regression models are applied to investigate the stock performance upon independent variables’ effects. Results of the study show that all selected variables are reliable to use to measure performance, except P/E ratio. Moreover, Z-score, current ratio, P/E ratio, and ROE generally have significant positive relationship with stock price performance, while total assets, in general, have significant negative relationship with stock price performance. Conclusion: This paper has a potential to contribute in knowledge of stock price and financial performance. It also examines financial distress of the market. The objective of the study is to examine the dynamics of stock prices using market value ratios and financial performance using financial ratios under financial distress of selective countries particularly. Using the empirical data from listed companies from the stock exchanges, this study determines the stock performance in a unique way with the combination of market value ratios and financial ratios.

The impact of intellectual capital on company financial performance: Evidence from the Omani industrial sector

The article aims to investigate, using the VAIC and MVAIC models, the impact of intellectual capital on the financial performance of Omani companies listed on the Muscat Stock Exchange from 2017 to 2021. Regression analysis revealed a significant positive influence of VAIC and MVAIC only on the Asset Turnover Ratio at a 10% significance level. This suggests that an increase in VAIC or MVAIC by one unit could lead to a respective increase in earnings for Omani listed industrial companies by 0.0017 and 0.0016. However, the overall impact of VAIC and MVAIC on financial performance appears limited, necessitating measures for enhanced efficacy. Moreover, company size and leverage were found to significantly influence EBITDA and Return on Assets, suggesting the positive effect of increased activity and resource utilization. Conversely, Return on Customer Equity negatively affected only Asset Turnover Ratio, implying that investments in marketing and advertising may not significantly enhance financial performance. Human Capital Efficiency showed no significant impact on financial performance measures, highlighting the necessity for Omani industrial enterprises to focus on enhancing employee skills and experience for improved value-creation processes. These findings underscore the intricate relationship between intellectual, physical, and financial capital in shaping financial performance, necessitating targeted strategies for enhancement. Further analysis of suggested models indicated the significance of company size on EBITDA, highlighting the importance of scaling activities for performance improvement. VAIC and MVAIC structural elements showed mixed results, while Capital Employed Efficiency negatively affected Return on Equity, Structural Capital Efficiency positively impacted EBITDA and Asset Turnover Ratio.

The effect of ESG and CSR attitude on financial performance in Europe: A quantitative re-examination

Focusing on the European context, this paper re-examines the relationship between the ESG and financial performance and whether CSR attitude moderates this relationship. A panel data set with all the listed companies in STOXX Europe 600, covering the period 2012–2022 was built, with company data being sourced from the Refinitiv Eikon platform for a total of 6600 firm-year observations. Six measures of financial performance and three regression frameworks were considered for analysis. Overall, inconsistent patterns of effect are identified across ESG predictors and financial performance measures. The presence of a CSR committee was found to negatively moderate the effect of ESG score on ROA only, whereas an external auditor to the CSR report to negatively moderate it with share price. Future research should consider replicating the proposed re-examination framework in other data settings and legislative and accounting contexts to strengthen the current evidence base and therefore deepen our understanding of the mechanisms underlying the investigated relationships.

The comparison of RBV-based competitiveness of Hungarian family-owned and non-family-owned SMEs

PurposeThe purpose of this paper is to identify the differences between Hungarian family-owned businesses (FOBs) and non-family-owned businesses (NFOBs) concerning the elements of SME competitiveness and financial performance.Design/methodology/approachThe research covers the Hungarian data set of the Global Competitiveness Project (GCP, www.sme-gcp.org) of 738 (data collection between 2018 and 2020) non-listed SMEs, of which 328 were FOBs. The study uses the comprehensive, multidimensional competitiveness measurement of the GCP built on the resource-based view (RBV) and the configuration theory. Financial performance was captured with two composite indicators: short-term and long-term financial performance (LTFP). The comparative analysis between FOBs and NFOBs was conducted using binary logistic regression.FindingsThe results show that FOBs are more prone to focusing on local niche markets with higher longevity and LTFP than NFOBs. However, FOBs have lower innovation intensity and less organised administrative procedures. The most contradicting finding is that the FOBs’ higher LTFP is accompanied by significantly lower competitiveness than in the case of NFOBs.Originality/valueThis study goes beyond other GCP studies by including composite financial performance measures among the variables examined. The combination of performance-causing (resources and capabilities) and performance-representing (financial performance) variables provides a better understanding of the non-listed SMEs in terms of family ownership. The results help academia to enrich the RBV-competitiveness, the non-listed SME management and finance literature, and policymakers to design business development and support schemes. They also show future entrepreneurs the impact of family ownership on entrepreneurial success.

Analisis Kinerja Keuangan Perbankan Syariah Indonesia Sebelum dan Sesudah Merger Bank Syariah Indonesia

This research is motivated by the measurement of financial performance in Islamic banking. The existence of financial performance in Islamic banking will affect the good value for the banking company, because it will become a reference for investors and become a reference in how much the value of the stock price will be determined by investors. This study aims to analyze the existence of financial performance in Islamic banking in Indonesia before and after the merger. The data in this study were obtained and obtained from the financial reports of Islamic banking in Indonesia. This study uses secondary data by taking data sources on the internet. The method of data analysis used is comparative analysis. The results of this study provide an indication that there are significant differences between profitability, liquidity, solvency, activity ratios, and market ratios before and after the merger to become Bank Syariah Indonesia, with the merger making Bank Syariah Indonesia experience rapidly increasing revenues. This means that Working Capital has a significantly positive influence on the results of operations at Bank Syariah Indonesia.

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.&#x0D; Keywords: Profitability, Liquidity, Financial Performance

Innovation and financial performance: an European evidence

Purpose- The purpose of this study is to explore the relationship between innovation and financial performance in the context of European listed companies. Starting from the initial thesis of Schumpeter, this topic attracts the interest of academics and managers because innovation is included among the factors capable of influencing the value, profitability and competitive advantage of companies. The empirical evidence in this regard appears divergent: the existing literature shows positive or negative impacts or indicates the absence of a relationship between innovation (summarised in research and development expenditure) and financial performance. Methodology- The study employs correlation analysis in order to figure out the existence of a link between innovation and financial performance. In accordance with the literature review, we use R&amp;D expenses divided by sales as proxy of innovation and return on equity (ROE), return on capital employed (ROCE), EBITDA margin and profit margin as measures of financial performance. Data are obtained form the Amadeus Bureau van Dijk database and refers to the year 2020. Given the need to consider companies for which all the quantities mentioned are available for 2020, the final sample is made up of n. 224 European listed companies. Findings- Pearson's correlation coefficient with EBITDA margin is 0.027, with ROA is 0.016, with Net profit margin is 0.034 and with ROE is 0.025, highlighting a weak positive relationship between the independent variable and each dependent variables (that means the R&amp;D activities will increase the profitability of firms on the same financial year). However the p-value, higher than the α=0.05 threshold, makes the correlation coefficient not statistically significant. The analysis reveals that innovation, measured by the ratio R&amp;D espenses to sales, does not show any correlation with financial performance instantly, that is on the same financial year. Our results are consistent with the branch of studies according to which R&amp;D activity has no effects on company performance. Conclusion- The analysis conducted does not prove the existence of a significant relationship between innovation and financial performance. A possible explanation can be found in the circumstance whereby the effect of research and development activities, as well as for all intangible assets, on the performance of companies is mainly observable in the medium-long term (what is known in the literature as the “lagged effect” of intangible assets on performance); therefore limiting the analysis to just one year does not allow us to fully grasp the impact itself. The conclusion reached is not to be understood in an absolute sense since innovation can also be measured by other indicators other than research and development expenses, such as the use of ICT, graduate employees, etc. Hence the possibility of further research developments and points of reflection considering the impact of R&amp;D on the firm’s long-run performance and including other factors in the analysis. Keywords: Innovation, firm performance, financial performance, listed companies JEL Codes: G30, L29, O30,

Green process innovation, green product innovation, leverage, and corporate financial performance; evidence from system GMM

Natural resource usage has produced various environmental challenges. Green process innovation has been considered a viable option that can help both industry and society. This study investigates the impact of green process innovation and green product innovation on corporate financial performance. We based our findings on a sample of 280 listed non-financial firms operating in South Asia. Information was gathered from firms' annual and CSR reports from 2012 to 2022. This study's data was analyzed using a two-step dynamic panel system GMM, correlation analysis, multicollinearity diagnostic tests, and descriptive statistics. Corporate financial performance is measured with ROA, ROE and Tobin's Q. Overall findings of the study show that green innovation has a significant positive impact on all measures of financial performance. Investing in the innovation of green products and green process can assist businesses in avoiding environmental concerns and regulatory penalties, while also assisting them in establishing new market prospects and achieving new levels of success with their green products. In addition, developing products that are friendly to the environment is tightly connected to expanding green competencies, promoting a company's green image, and improving the company's financial performance. Particularly useful for policymakers in developing countries, the study's findings can be used to introduce paradigm-shifting legislation and penalties that speed up business adoption of green process innovation.

Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country

Businesses are actively integrating sustainability principles into their operations by pursuing goals that go beyond reputation management, which all help companies capture value through growth and return on investment. This study aimed to investigate the current status of the Sustainable Workplace Equality Policy (SWEP) in an emerging country—Kuwait—and how it impacts firms’ financial and market performance. This study included companies listed in the Kuwait Boursa (Boursa Kuwait is the operator of the Kuwait Stock Exchange) in the period between 2016 and 2021. A disclosure index was prepared for SWEP based on guidelines provided by a combination of various sources and standards such as the Global Reporting Initiatives (GRI) Standard, S&amp;P Global Corporate Sustainability Assessment, Dow Jones Sustainability Index, United Nations Global Compact, and KPMG Sustainability Reporting Standards. Time series regression analysis was used to examine the hypotheses of this study which were developed using Rawls’ Theory of Justice (1971). The results revealed a strong positive relationship between SWEP disclosure and firm measures of financial performance. The results also indicate that SWEP is value-relevant and affects firms’ market value, suggesting that investors consider firms’ disclosure of SWEP when making investment decisions in Kuwait. The results of the current study are of interest to several stakeholders, especially investors and policymakers. Specifically, this study is relevant to the Kuwaiti Government, which has defined a clear path for sustainable growth with the Vision 2035/New Kuwait initiative that is aimed at transforming the country into a financial and commercial hub for the region by 2035.

An Investigation of the Impact of Mobile Money Services on the Profitability of Commercial Banks in Zambia

This paper sought to determine the impact of mobile money services on the profitability of commercial banks in Zambia. The study was guided by three objectives; (i) To examine the level of use of mobile money services in Zambia; (ii) to assess the measures of financial performance in the banking industry and (iii) to establish the relationship between the use of mobile money services and financial performance of the banking industry. The study applied both qualitative and quantitative research approaches mainly descriptive correlation design. The target population comprised of workers in all the commercial banks, mobile money operators (MMOs) and regulators and bank experts from Zambia Information and Communications Technology Authority (ZICTA) and Zambia Institute of Bankers (ZIOB) located in Lusaka central business district. A sample of 156 respondents was chosen using purposive sampling techniques to select retail, operations, customer service and finance department employees from banks and MMOs and two experts from ZICTA and ZIOB as key informants. Data were collected using questionnaires administered via Google forms sent to WhatsApp contacts and email addresses of respondents. Data were and analyzed using SPSS statistical packages to generate descriptive statistics (mean and standard deviations) and inferential statistics (regression analysis). The findings of study were presented in form of means, standard deviations, Pearson’s linear correlation coefficient and linear regression analysis. According to the findings of the study, it was indicated that there is generally a high level of use of mobile money services in the banking industry observed from a high level of reliability and accessibility to the services (Means of 3.71 and 4.17 simultaneously). The findings also indicated that there is a high level of financial performance reflected by a high level of profitability (Mean=4.52) in the banking industry, a high level of loan supervision (Mean=3 .85) and relatively high revenue sources (Mean=4. 11) for the banks. It was also indicated that there is an insignificant relationship between mobile money services use and financial performance in terms of profitability of banking industry (Sig. Value=0.2l2). It was also indicated that there is an insignificant relationship between mobile money services use and loan portfolio management of the banking industry (Sig. value=0.605). Finally, it also indicated that there an insignificant relationship between mobile money services use and revenue of banking industry (Sig. Value=0.435). The study thus recommends that commercial banks in Zambia which have not yet collaborated with MMOs should adopt the use of mobile money services on their platforms as it is highly reliable, accessible and reduces congestion in bank premises by customers who come to make transactions. This will help to boost financial performance in the banking industry.

Analysis of Financial Performance Measurement Models for Zakat Institutions

This research aims to identify and analyze the financial performance measurement model of zakat institutions. This research uses qualitative methods, a literature study approach, and descriptive analysis. The data source comes from Google Scholar. Literature data was obtained by searching for keywords on Google and the publish or perist application. The research results show that there are five performance measurement models in Zakat financial institutions consisting of Data Envelopment Analysis (DEA), Zakat Management Organization Ratio (OPZ), Indonesian Magnificence of Zakat (IMZ), International Standard of Zakat Management (ISZM), and Balance Scorecard. The research results also found that each measurement model has its characteristics with different measurement methods. Zakat supervisory authority institutions and researchers can use five performance measurement models in Zakat financial institutions.

ANALYSIS OF TOTAL DEBT TO ASSET RATIO AND PROFIT MARGIN AS A MEASURE OF COMPANY FINANCIAL PERFORMANCE

This research aims to analyze the Total Debt to Asset Ratio (TDTAR) and Profit margin as a measure of a company's financial performance. TDTAR is used to measure a company's debt level in relation to its total assets, while Profit margin is used to measure a company's efficiency in generating net profit from its operating income. These two ratios provide valuable insight into a company's financial condition and profitability. This research identifies that the relationship between TDTAR and Profit margin has important implications in company decision making. A high TDTAR can indicate greater financial risk, especially if it is not balanced with a healthy Profit margin. Conversely, a low Profit margin can indicate operational efficiency problems that need to be corrected. In addition, this research highlights the importance of good financial risk management in managing the relationship between TDTAR and Profit margin. Companies need to understand the impact of these two ratios on their profitability, financial stability and financial decisions. Clear communication with stakeholders is also a key factor in building trust and support. In conclusion, TDTAR and Profit margin analysis are important tools in measuring a company's financial performance. Wise use of these two ratios can help companies plan, manage risks and achieve their financial goals well. This research provides a deeper understanding of the relationship between these two ratios and their implications in the context of corporate decision making.

The Impact of Corporate Social Responsibility and Corporate Governance on Firm Performance: A Study of ESG Quality 45 IDX-KEHATI

The KEHATI-listed companies have displayed commendable SRI performance across financial metrics and transactional liquidity. Among these firms, PT Danone Indonesia faced a Corporate Social Responsibility (CSR) issue in 2012 due to the uneven distribution of benefits, which prompted community protests and undermined the company's efficacy, ultimately impacting its performance. The overarching objective of this study is to explore and comprehend the relationship between CSR, corporate governance, and their potential impact on the performance of ESG QUALITY 45 IDX KEHATI listed on the Indonesia Stock Exchange (IDX). The study utilized panel regression analysis to analyze data collected over five years (2017-2021) from IDX. The research implies that there is no substantial relationship between corporate governance and performance. However, the findings evidence implies that there is a strong negative relationship between CSR and ROE, while ROA remains unaffected. In terms of control variables, the study found no significant correlation between firm size and ROA and ROE, while leverage had shown a substantial negative influence on both financial performance measures. This research sheds light on the connection between CSR, corporate governance, and business performance.