Non-financial Factors Research Articles

Retraction Note: Investing energy transition future: a comprehensive assessment of financial and non-financial factors that affect access to capital

Retraction Note: Investing energy transition future: a comprehensive assessment of financial and non-financial factors that affect access to capital

Dynamics of Corporate Finance Research in Global Scientific Literature

This study explores the dynamics of corporate finance research in global scientific literature from 2000 to 2024 using a bibliometric approach. By analyzing keyword co-occurrence and citation data, the research identifies key themes, emerging trends, and influential contributors in corporate finance. Core topics such as capital structure, cost management, and debt remain central, reflecting traditional corporate finance priorities. However, newer areas, including corporate social responsibility (CSR), corporate cash holdings, and behavioral finance, have gained prominence, signaling a shift towards integrating non-financial factors into corporate strategies. The study also highlights the lasting impact of global financial crises, particularly the 2008 crisis, on shaping research in financial distress, risk management, and institutional roles. These insights provide a comprehensive overview of the evolution of corporate finance research and offer directions for future studies.

Determinants of Corporate Social Responsibility Disclosure: The Influence of Non-Financial Factors in Indonesian Energy and Pulp & Paper Industries

Determinants of Corporate Social Responsibility Disclosure: The Influence of Non-Financial Factors in Indonesian Energy and Pulp & Paper Industries

Supply Chain Finance and profitability of SMEs in China: the moderating and mediating effect of finance constraint and the moderating effect of risk management

This study investigates the influence of SCF on the profitability of SMEs in China, considering the mediating role of financial constraints and the moderating effects of financial constraints and risk management. Through a comprehensive analysis of 86 SMEs, employing multiple regression models and SEM, the research establishes a significant positive relationship between SCF utilization and SME profitability, as measured by ROA. The findings reveal that financial constraints mediate this relationship, suggesting that SCF alleviates financial pressures, thereby enhancing profitability. Additionally, the study demonstrates that both the degree of financial constraints and the capability for risk management exert moderating effects on the SCF-ROA link, indicating that the benefits of SCF are more pronounced under greater financial challenges and with stronger risk management practices. The constructed SEM model validates all hypotheses, illustrating that SCF positively impacts profitability through direct effects and by reducing financial constraints. The model fit indices confirm the high level of model fit, supporting the theoretical and practical implications of the study. The research contributes to the literature by enriching theories related to supply chain finance, SME development, financial constraints, and risk management. It also provides actionable insights for Chinese SMEs in optimizing financing strategies and risk management, and offers a basis for policymakers to improve support policies. The study acknowledges limitations in sample size and scope, suggesting avenues for future research to expand the sample and explore non-financial factors affecting the effectiveness of SCF.

Stock Return Prediction under US Federal Funds Rate Hike Based on Supervised Machine Learning

As US Federal Reverse Systems has continued to raise federal funds in the past few years in order to curb inflation, this has had a huge impact on chinese capital market. Investors and financial institude are actively engaged in predicting stock returns to maximize their investment income. This study constructs a model to analyze and predict the financial factor of stock income based on supervised machine learning methods and evaluate the results. The datasample is extracted from wind, for the period half a year before and after the recent federal funds rate hike. Utilizing machine learning packages in R, this paper construct models based on linear discriminant analysis, decision tree and random forest models. After constructing estimation models, this paper visualizes the prediction result by utilizing drawing package in R. It has been found that the random forest algorithm predicting model generates very successful results for the financial factor prediction as the model accuracy reaches 99%. According to the analysis, relevant model to predict financial factors and non-financial factors based on non-linear supervised machine learning algorithm can be built by investors or hedge fund agency to estimate stock performance in the future. This study also investigates the economic result of the Federal Funds Rate hikes, which is instructive for investors to make well-informed decisions.

Fostering Investment Efficiency in Indonesian Firms: Empirical Evidence and Recommendations for Future Research

Objective –The purpose of this research is to review and examine the empirical evidence on investment efficiency in Indonesia.Design/methodology –This research employs bibliographic analysis. This research utilizes 30 articles published between 2015 and 2023 in internationally recognized Scopus journals and nationally recognized Sinta 2 journals.Results –This research identifies three categories of factors that impact investment efficiency namely financial, governance, and non-financial factors. Financial factors are essential in assessing investment effectiveness, while corporate governance factors can enhance a firm's investment decisions. Non-financial factors related to managerial personnel can also significantly impact a firm's investment efficiency. Future research on investment efficiency in Indonesia should incorporate diverse variables and external factors, conduct comparative studies with neighboring countries, and collaborate with industry stakeholders to bridge the gap between theory and practice.Research limitations/implications –This research focuses primarily on analyzing the literature on investment efficiency in Indonesia by using charting the field method. This research adds to the literature on the various factors that affect the investment efficiency of firms.Novelty/Originality –This research is the first to conduct a comprehensive literature review on investment efficiency in Indonesia. By systematically analyzing findings from various studies, this research offers a unique and thorough understanding of investment efficiency within the Indonesian context.

The Effect of Board of Directors' Diversity on Financial Distress in Energy Companies in Indonesia

The purpose of this study is to determine the role of board diversity in the form of the presence of female directors, the presence of foreign directors, the age of directors and the size of the board of directors against the risk of financial distress by conducting logistic regression testing on energy sector companies in Indonesia during 2018-2022. The results showed that the presence of female directors and the size of the board of directors negatively affected the risk of financial distress. Further research can test separately the period before the pandemic and after the pandemic so that the characteristics of each can be known in more detail. In addition, it can add cognitive diversity factors such as education, expertise and tenure of directors. This research can be used as a reference to determine non-financial factors that can affect the possibility of financial distress experienced by the company.

A Perspective: Interaction of the “Leading – Lagging” Continuum of Non-financial and Financial Variables in Creating Economic Value Added for The Company

Basically, there are two main goals that the company wants to achieve simultaneously, namely maximizing profits for the welfare of shareholders on the one hand and employee satisfaction on the other hand. However, the facts show that management has long placed non-financial factors in a disproportionate manner compared to the treatment of financial factors. The aim of this research is to present a perspective through analysis of the interaction of a continuum of non-financial and financial variables in creating an economic value added for the company. The population is the largest national construction companies listed on the Indonesia Stock Exchange (IDX) in 2015 - 2019. Using the purposive sampling method, more than 50 percent of the companies became the research sample. Data analysis based on panel data and processed using Eviews, as well as classic statistical tests (t test and F test). The results provide a perspective regarding the influence of training & development, and cost control on revenue, cost of goods sold, and profitability ultimately on EVA. In terms of the coefficient of determination, it suggests a solid impact from both training and development as well as cost control on the bottom line., R2 = 93 percent influence on Gross Profit, R2 = 82 percent on Net Profit, R2 = 91 percent on NOPAT, there is a significant influence of Gross Profit, Net Profit and NOPAT on EVA respectively with t test < 0.05 and F statistic > 1.96. From the interaction process of the continuum of research variables, with some luck, a combination of results obtained through measures and those based on performance indicators will emerge, starting from non-financial elements to financial elements. This finding is the result of an original approach in modeling the relationship between non-financial variables and financial variables. This research is limited to the construction companies and the research variables only select proxies for human capital elements that are linked to financial performance data.

Predicting business performance: The role of budgeting techniques, cash management strategies and rational financial decision making

In today’s business environment, organizational leaders needs to understand the nature of business performance from the lens of new perspective relevant to the practices in financial management. The purpose of the study is to discuss the importance of budgeting techniques, cash management strategies and rational financial decision making in the arena of family businesses in the Philippines. The researcher aims to determine several factors that are involve to achieve desired business performance. Using the G*Power version 3.1.9.4, the total sample size needed for this study is 77. The members of sample size were selected via purposive sampling from the population. The researcher used a partial least squares structural equation modeling (PLS-SEM) to test the hypothesis and model. The findings indicated that cash management strategies (beta=0.519, t= 5.629, p=0.000) and budgeting strategies (beta=0.469, t= 5.459, p=0.000) has significant relationship with business performance while rational financial decision making (beta=-0.099, t=1.274, p=0.203) failed to achieve significant relationship. Considering cash management strategies as a mediating variable (beta=0.564, t=1.652, p=0.099) shows no indirect effect between rational financial decision making and business performance. In order for the rational financial decision making works with business performance, people performing managerial approach should factor the mediating role of budgeting techniques (beta=0.154, t=2.167, p=0.015) as the results shown a positive, though non-significant, the indirect effect on the relationship between rational financial decision making and business performance. The findings of the study can be the basis of people in the leadership position to arrive on a holistic view that business performance is a combination of financial and non-financial factors and a good grasp on single financial approach is not sufficient.

The Effect Of Profitability and Corporate Social Responsibility Disclosures on Company Value

Company value is a condition achieved by a company which is a reflection of public trust in the company. For companies going public, the company's value is reflected through its share price. Profitability is one of the financial factors that will be able to show the company's ability to achieve profits. Disclosure of corporate social responsibility is a non-financial factor as a form of corporate responsibility for the social and environmental impacts of the economic activities it causes. The aim of this research is to determine the effect of profitability and corporate social responsibility disclosure on the value of non-financial sector companies for the 2020-2022 period. This research uses the Compass 100 index, which is a stock index that measures the price performance of 100 stocks that have good liquidity and large market capitalization. The population was selected using a purposive sampling technique because not all companies in the research population met the specified criteria. The research results show that profitability and disclosure of corporate social responsibility have a positive effect on company value.

Evaluasi Kinerja Keuangan PT PLN (Persero) dalam Satu Dekade: Pendekatan Deskriptif dan Naratif

Purpose: This study aimed to evaluate the financial performance of PT PLN (Persero) over the last decade. This study identifies the trends, changes, and factors affecting companies’ financial performance. Research methodology: The methodological approach used in this research was descriptive and narrative. The financial data of PT PLN (Persero) are collected from annual reports, financial statements, and other secondary data sources. Results: This study found that the financial performance of PT PLN (Persero) showed significant variation over the past decade. While there were improvements in some financial ratios, there were also periods of decline caused by internal and external factors, such as regulatory changes, fuel price fluctuations, and government policy changes. These findings indicate the need for more adaptive and innovative management strategies to improve future financial performance. Limitations: This study has several limitations, including the limitation of data covering only one decade and reliance on secondary data that may not accurately reflect the current conditions. Additionally, this research focuses only on financial aspects and does not cover non-financial factors that may affect the performance of PT PLN (Persero). Contribution: This study contributes to the literature on the evaluation of the financial performance of state-owned enterprises (SOEs) in Indonesia, particularly in the energy sector. The findings of this study can be used in the management of PTPLN (Persero) to improve financial and operational strategies.

A New Model of Rating to Evaluate Start-ups in Emerging Indian Market

Conceptualization of an idea to a well framed model is emerging with need of generating wealth at national base. Entrepreneurship is the crucial base of an economy measuring the wealth base thereby contributing to national income. The need for evaluation of these start- ups with some criteria is a pressing priority. The rating criterion has risen these days as the expressional value for an individual assessment for a company or a firm. There is a need to widen the range for rating to full fledge rating model considering financials and non-financial aspects by opening its arms towards the most important segment of economy i.e. start-ups. In consideration of this, the need to launch a well specified rating agency for start-up is need of the hour. Since there is no particular study defining its focus towards such need on national and international level, we want to explore this area of research so as to contribute to existing literature (which is very limited). Considering India, although there is much effort by government to boost start-ups initiatives like Atma Nirbhar Bharat, Start-up India, Make in India and relaxations in budgets etc. but there is no criterion to evaluate these start-ups in order to gain visibility. In this research paper we made an effort to frame a rating model considering the important factors affecting the start-up which can satisfy the need for the model. The model is framed by us considering all financial factors like sources of funds, working capital, financial performance, idle funds etc. and non-financial factors like founder details, descriptive, market variable and future aspects etc. which are essential for a start-up to evaluate and henceforth benefits in longer run-in terms of getting easy funding, financial support and more visibility. An extant literature review is done in order to cover all parameters focusing the evaluation of start-ups with a longer perspective by adding to existing literature and helping policy makers, entrepreneurs, venture capitalists who can use the model to assess the start-ups and henceforth can benefit the economy.

SUKUK RATING: MATURITY, SUKUK STRUCTURE AND GUARANTEE WITH PROFITABILITY AS MODERATION

Introduction: The development of corporate sukuk in Indonesia increases every year, which is why a credible sukuk rating is very necessary. Sukuk is a sharia investment instrument with minimal risk. This research aims to determine the factors that influence sukuk ratings from non-financial factors such as maturity, sukuk structure and guarantee with profitability as moderation through 130 samples of corporate sukuk issued in 2018-2022. Method: The method used is descriptive analysis, Ordinal Logistic Regression and Moderate Analysis Regression with SPSS 25 software. Results: The research results show that maturity and structure sukuk have a significant negative effect, the guarantee has a significant positive effect on sukuk rating. Profitability is not able to moderate the influence of maturity on sukuk rating, profitability weakens the influence of the sukuk structure on the sukuk rating and profitability strengthens the influence of guarantee on the sukuk rating on the sukuk rating. Conclusion and suggestion: Therefore, potential investors must pay attention to the sukuk ranking and the company's level of profitability before deciding to invest. Companies must pay attention to the company's economic and non-economic conditions in order to minimize the risk of default.

Empirical Investigation of Non-Financial Factors Shaping Employee Job Satisfaction in Higher Education Institutions of Jaipur, Rajasthan

The research aims to explore how non-financial factors influence the job satisfaction of employees in higher education institutions, thereby contributing to the advancement of the nation and its citizens. To collect primary data, a quantitative method employing empirical methods has been utilized. Data has been acquired via a standardized questionnaire using stratified random sampling from higher education establishments in Jaipur. A total of 400 responses were gathered, and this study employed multiple linear regression as well as exploratory and confirmatory factor analysis. The findings reveal that training and development, relationships between superiors and subordinates, incentives and recognition, and leave benefits are significant factors impacting job satisfaction. Employee contentment at higher education institutions is predominantly shaped by non-financial aspects, where working conditions are overlooked. The research recognizes the significance of non-financial factors in higher education institutions and uncovers specific statistical proof regarding job satisfaction in this context. The findings suggest that non-financial factors play a substantial role in determining job satisfaction among employees in higher academic institutions. The study gathers essential indicators of employee satisfaction with their roles and applies them to the realm of higher education. It presents numerous factors related to non-monetary incentives for employees in higher education institutions.

Exploring job satisfaction’s impact on turnover tendency among employees in Kosova’s microfinance institutions

Purpose The purpose of this paper is to delve into the intricate link between job satisfaction and employees’ turnover intentions. To accomplish this, a detailed structural model was constructed, incorporating five essential constructs: job satisfaction, turnover intention, satisfaction with financial factors, satisfaction with non-financial factors and external factors. Design/methodology/approach The research used a questionnaire with 28 items based on established tools, focusing on five different constructs. The model’s validation involved applying structural equation modelling to 147 non-managerial employees in microfinance institutions. Findings The findings reveal a significant negative correlation between job satisfaction and turnover intention. Satisfaction with financial factors significantly outweighs satisfaction with non-financial factors in shaping job satisfaction. In addition, the impact of external factors on turnover intention was observed to be minimal and inconsequential. Research limitations/implications This review highlights the importance of investigating the moderating factors in the job satisfaction–turnover relationship, distinguishing between types of satisfaction and conducting longitudinal studies across diverse contexts. It notably presents a diverse range of recent findings in this field, emphasising the breadth of the results that have emerged in this area of research. Practical implications Understanding job satisfaction and turnover intention is crucial for microfinance institutions. By prioritising efforts to enhance job satisfaction through improved financial offerings and non-financial factors like a supportive work environment and opportunities for growth, organisations can effectively mitigate turnover rates and foster success. Social implications The study underscores the societal value of supportive work environments beyond just benefits and career opportunities. By understanding the external influences on employee satisfaction, organisations can contribute to building more decent workplaces and promote social well-being, while advocating for social considerations in organisational practices. Originality/value This paper uses a novel integrated model comprising five distinct constructs not previously used together. It stands among the pioneering works that not only elucidate the correlation between job satisfaction and turnover intention but also delineate the constituents of job satisfaction itself.

Financial and non-financial factors for the success of hybrid offerings: evidence from multinational enterprises in an emerging market

PurposeThe purpose of this study is to identify the financial and non-financial factors contributing to the success of hybrid offerings among Pakistani multinational enterprises (MNEs).Design/methodology/approachTo capture the complexity and interdependence of success factors, this study employed fuzzy-set qualitative comparative analysis (fsQCA). Data were collected from 213 chief executive officers (CEOs) of Pakistani MNEs.FindingsThe findings indicate that organizational support for service plays a vital role in hybrid offerings. Specific paths, such as a service-oriented corporate culture and management commitment to service, are necessary conditions for successful hybrid offerings.Originality/valueThe study sheds new light on the causal relationship underlying hybrid offerings in Pakistan, one of the Next Eleven countries, which is among the fastest-developing economies. We identified various paths to the financial and non-financial success of hybrid offerings within the Pakistani manufacturing MNE sector, which, to the best of our knowledge, has been underexplored. Additionally, we considered the digitalization dimension, which integrates and strengthens previous configurational models.

Research on the Impact of Determinants of Mergers and Acquisitions in the Indian Chemical Sector: A Case Study of Sumitomo Chemical India and Excel Crop. Care Ltd

This research has analysed the determinants of merger and acquisition in the Indian Chemical Market by analysing its potential challenges and opportunities. The introduction has offered a brief understanding of the Indian Chemical Market and the challenges present in the merger and acquisition initiatives. After that, it has designed the aims objectives and the research questions based on the topic. Implementing secondary research methodology, it has analysed the existing articles related to the topic to meet the objectives. In order to place a practical example, it has demonstrated the case study of Sumitomo Chemical India which has been recently merged and acquired. Depending on the case study, it has discovered different factors related to the merger and acquisition in the Indian Chemical sector. Also, for a better understanding of the M&D initiatives it has mentioned different financial and non-financial factors associated with global mergers and acquisitions. The methodology section has briefly analysed the incorporated methodology and approach for conducting the research. After that, it has conducted a thematic analysis for establishing the argument. It has been concluded with a conclusion by summarising the findings for better understanding

Preferences of Iranian medical students for selecting the compulsory service plan packages: A discrete choice experiment.

Health policymakers face challenges in designing compulsory plan packages for medical students to encourage them to work in disadvantaged regions. Using a discrete choice experiment, this study assessed the preferences of medical students for selecting the compulsory service plan packages in Guilan Province, Iran. In total, 374 medical students responded to a survey inquiring about salary, distance from their residency city, availability of welfare amenities, work difficulty, the developmental status of their workplace, contract duration, and preference for urban or rural work settings. The study revealed that students favor a compulsory service package that provides higher salaries and shorter contract duration. They also show a preference for working within their home province over other factors. For the opportunity to serve in their city of residence, they would forgo an average of US$77.93 per month. While financial incentives were the primary consideration for medical students when choosing compulsory service packages, a range of nonfinancial factors significantly influenced their decisions as well.

An Evaluation of Motivational Factors and Performance in Akwa Ibom State Civil Service, Nigeria

The paper focused on the evaluation of motivational factors and performance in the Akwa Ibom State civil service. We conducted the research to identify the various motivational strategies used in Akwa Ibom State civil service and their impact on the job performance of employees. A survey research design was used, and a questionnaire was administered to 550 respondents randomly selected from five (5) ministers in the state and six (6) local government councils. The data collected from these respondents was analyzed using multivariate regression models. From the analysis, the results showed that in Akwa Ibom State Civil Service, financial motivation is predominantly used without an appropriate mix of non-financial factors. These have resulted in low motivation and low performance. Also, it was ascertained that there was a significant relationship between performance and financial and non-financial motivation, which includes leadership style, job satisfaction, and employees’s participation in decision-making. The study recommended that the government should adopt an integrated approach to motivation and work out how to implement new motivational policies with a major focus on non-financial strategies. Keywords: Motivation, performance, civil service, employees.

Sustainable transportation perspective: how our preferences for zero-emission vehicles change through time?

Abstract The Slovenian automobile market has gained great momentum in the past decade. However, the demand contractions in the supply chain created a huge crisis in the automobile industry in Slovenia. The automotive industry's new competitive dynamics focus on green logistics, sustainability, and purchase decisions. The study aims to comparatively analyze the factors affecting consumers' automobile purchasing decisions from a sustainable transportation perspective. In the survey, we included 1502 participants to identify the most important parameters of consumer behaviour related to purchasing alternative fuel vehicles. In the regression analysis results in the first analysis, non-financial factors sub-dimensions such as the body shape and fuel type, vehicle size, and style/appearance/colour had a positive effect on purchasing decisions of zero-emission cars. The second analysis was performed 5 years after the first analysis. Moreover, the findings provide insights that non-financial factors sub-dimensions such as entertainment system, vehicle size, and vehicle capacity and financial factors sub-dimensions between the insurance group for the vehicle, finance deals, value for money, annual road tax had a positive effect on purchasing decisions of zero-emission vehicles in the second analysis. Results show that the most relevant factor for purchasing zero-emission vehicles is total vehicle price and that the segment of potential alternative fuel vehicle consumers is much higher than it has been anticipated. This study provides an overview of the current understanding of individuals' vehicle purchasing decisions.