Management Financial Performance Research Articles

TODIM-GRA technique for performance evaluation of financial management in provincial colleges under 2-tuple linguistic Pythagorean fuzzy sets

Higher provincial education is a very important component of higher education, and it will become a key focus of the higher education development in the future. The purpose of performance evaluation of financial management in provincial colleges is to assess and evaluate the current situation of financial management in provincial colleges based on cost-effectiveness principles, with a performance-oriented approach. A specific, standardized, easy to quantify, and operable evaluation system is designed for its fund operation and financial management. By evaluating the financial management performance of provincial colleges, a new assessment standard can be provided for the “input-output result” of public education, providing an important basis for achieving a performance allocation mechanism. The performance evaluation of financial management in provincial colleges is MAGDM. In recent years, the TODIM and grey relational analysis (GRA) technique was employed to deal with MAGDM. The 2-tuple linguistic Pythagorean fuzzy sets (2TLPFSs) are employed as an effective tool for expressing uncertain decision information during the performance evaluation of financial management in provincial colleges. In this paper, the 2-tuple linguistic Pythagorean fuzzy number TODIM-GRA (2TLPFN-TODIM-GRA) technique is constructed to deal with MAGDM under 2TLPFNs. Finally, a numerical example for performance evaluation of provincial colleges financial management is constructed to verify the proposed technique.

Analysis of the Financial Report Performance of the DKI Jakarta Provincial Government for the 2017 – 2021 Fiscal Year (Audited)

Research This study aims to analyze the comparative financial performance of DKI Jakarta Province during the 2017 - 2021 budget year. This study uses descriptive quantitative methods by observing a number of financial ratios including the independence ratio, activity ratio, effectiveness ratio of Regional Original Income (PAD), growth ratio, and ratio efficient use of the budget. The results of the research show that the independence ratio is already participatory with the level of regional capability in the medium category. The activity ratio, based on the activity ratio, the DKI Jakarta Provincial Government prioritizes operating expenditure over capital expenditure. The effectiveness ratio of Regional Original Income (PAD), the financial performance of DKI Jakarta is included in the category effective, which shows that the DKI Jakarta Provincial Government is effective in realizing the source of Regional Original Income (PAD), the growth ratio, from the growth ratio analysis it can be seen that the financial management performance of DKI Jakarta is in the good category, and the efficiency ratio for budget use in 2017 performance was in the efficient category. In 2018-2019 financial performance was inefficient, and in 2020 and 2021 showed less efficient performance. It is hoped that the results of this research will contribute to further research.

The mediating role of sustainable supply chain management on entrepreneurship strategy, social capital and SMEs’ financial and non-financial performance

Research related to entrepreneurial strategy variables, financial and non-financial performance, social capital and supply chain management in SMEs has not been widely carried out in Indonesia. The purpose of this study is to analyze the relationship between entrepreneurial strategy on financial and non-financial performance, social capital on financial and non-financial performance and sustainable supply chain management on financial and non-financial performance in SMES. The research method is quantitative with the online survey method. The data collection method is by distributing online questionnaires to 690 SMEs owners in Indonesia determined by simple random sampling. The questionnaire is designed using a Likert scale of 7. Data processing used structural equation modeling with SmartPLS 3.0 software tools. The results of data processing show that entrepreneurship strategy (ES) had a positive and significant effect on sustainable supply chain management (SSCM), social capital (SC) had a positive and significant effect on sustainable supply chain management (SSCM), entrepreneurship strategy (ES) had a positive and significant effect on SMEs financial and non-financial performance (SFNFP), social capital (SC) had a positive and significant effect on financial and non-financial performance (SFNFP) and sustainable supply chain management (SSCM) had a positive and significant effect on financial and non-financial SMEs financial performance ( SNFFP).

CODAS method for Pythagorean 2-tuple linguistic multiple attribute group decision making

The evaluation of the financial performance of universities is conducive to the sustainable development of universities. Based on this, we extend the traditional CODAS (COmbinative Distance-based ASsessment) method to the Pythagorean 2-tuple linguistic fuzzy environment and propose a P2TL-CODAS model to evaluate the financial management performance of universities. Firstly, we briefly describe the definition, the score function, accuracy function, operational laws and the distance calculating method of P2TLSs. Next, two aggregation operators of P2TL including Pythagorean 2-tuple linguistic weighted averaging (P2TLWA) operator and Pythagorean 2-tuple linguistic weighted geometric (P2TLWG) operator are also introduced to fuse overall Pythagorean 2-tuple linguistic evaluation information. Then the steps of CODAS method are depicted briefly. Moreover, we use linguistic Pythagorean 2-tuple linguistic fuzzy numbers to extend the CODAS method. The P2TL-CODAS model is established and all computing steps are simply presented. Furthermore, we apply the proposed method to evaluate the financial management performance about five universities. Finally, a comparison between P2TL-CODAS method and P2TL-TODIM method is made to demonstrate the stability of the new method. The results show that the proposed method has unique advantages.

Financial Management of Regional Public Service Agency

The Regional Public Service Agency (BLUD) is a work unit in the Regional Work Unit which provides services to the community with flexibility in financial management, different fromregional financial management patterns in general. BLUD is part of local government and has flexibility in implementing business practices to improve community services. The BLUD financial management pattern provides flexibility in managing income, expenditure, cash, debts and investments. The Community Health Center (Puskesmas) has used the BLUD system since 2018, requiring the ability and awareness of human resources to run the system. Based on this, the aim of the research carried out is to see an overview of the implementation of government policies in the form of financial management of Regional Public Service Bodies which have been regulated in the Sumbawa Regent's Regulation Number 5 of 2020 concerning Financial Management Guidelines for Regional Public Service Bodies linked to Sumbawa Regency. To obtain the objectives of this research, the researcher used qualitative descriptive research using interview and observation instruments to collect data both directly and through documents. The results of the research that has been carried out provide an illustration thatPublic policy evaluation is closely related to the level of compliance and satisfaction with the financial management performance of BLUD community health centers. The results of this research can complement William Dunn's opinion or theory regarding public policy evaluation to focus on the level of compliance and performance satisfaction in evaluating public policies, which does not only focus on the values, goals and targets of a policy as measured by numbers

Pemanfaatan Sistem Informasi Manajemen Daerah Pada Kinerja Pengelola Keuangan dan Kepuasan Pengguna Sebagai Variabel Intervening

This study aims the local management system (SIMBA) on financial management performance with user satisfaction as an intervening variable This research was conducted on OPD in Bengkulu Province. This type of research is quantitative. The data used are primary data obtained from questionnaires. Sample selection using the Census method. Data were analyzed using Structural Equation Modeling with Partial Least Squares (PLS) and using SmartPLS 5 software. The results showed that the use of information systems and financial management satisfaction had a positive effect on financial management performance in OPD in Bengkulu Province or 72.5%.

Navigating Uncertainty: Assessing the Impact of Financial Risk Management on Organizational Performance: Evidence from Insurance Companies in Pakistan

In an era marked by economic volatility and global uncertainties, the effectiveness of financial risk management strategies is crucial for businesses, particularly in the financial services industry. This research investigates the relationship between financial risk management (FRM) practices and organizational performance, specifically within the insurance sector in Pakistan. Moreover, the study aims to explore the role of financial risk management in enhancing the performance of insurance companies operating in the Pakistani market. It establishes a research model based on Financial Risk Management (Market Risk, Operational Risk, Liquidity Risk, and Legal Risk) and Organizational Performance (ROE). Researchers surveyed 13 insurance companies in Pakistan using non-probability and convenience sampling techniques and analyzed the data using EViews. The results indicate a significant and meaningful link between organizational success and financial risk management. This study seeks to incorporate best practices and focuses on developing a comprehensive understanding of the influence of organizational performance and financial risk management strategies.

Exploring the Impact of Loan Loss Provision on Profitability: An Analysis of Commercial Banks in Nepal

Background: The central bank closely examines the loan loss provision maintained by Nepalese commercial banks in order to minimize potential losses resulting from a rise in non-performing loans, which reduces bank capital and squeezes the profitability and sustainability of banks. Establishing the relationship between loan loss provision and profitability is crucial in assessing the financial performance and risk management effectiveness of commercial banks. This analysis enables banks to minimize loan loss provisions, reinforcing profitability and ensuring long-term sustainability through the implementation of appropriate credit policies. Objectives: This research aims to analyses the influence of loan loss provision on the profitability of commercial banks in Nepal. The study also takes into account pertinent variables: non-performing assets, loans and advances to total deposits, and capital adequacy which may affect the relationship. Methods: This study has used both the descriptive and causal-comparative study approaches. The study used a panel data set consisting of 105-year observations, spanning from fiscal year 2017/18 to 2021/22, including 21 presently active commercial banks.The return on assets (ROA) is the dependent variable and loan loss provision (LLP) is an independent variable. The Fixed Effect (FE) panel regression has been chosen as an appropriate model as suggested by the Haussmann test. Results: A panel regression model has found a negative and substantial connection between the provisions for loan losses with the Nepalese commercial banks’ profitability. Conclusion: The study concluded that the increased provision for loan losses adversely affects the profitability of commercial banks in Nepal. Therefore, commercial banks should carefully evaluate their loan portfolios, carry out thorough credit risk assessments, and adopt sensible policies to maximize profit and ensure financial stability.

Mapping the Financial Risk Management Landscape: A Bibliometric Analysis of Recent Trends and Influential Contributions

This bibliometric analysis explores recent trends and influential contributions in financial risk management, shedding light on thematic clusters, keyword occurrences, and highly cited works. The analysis encompasses a wide array of literature, ranging from the integration of risk considerations into broader corporate strategies to the impact of technological advancements on risk management practices. Thematic clusters reveal the interconnectedness of business practices, corporate social responsibility, and risk management, while keyword occurrences highlight dominant themes like financial performance and credit risk management. Highly cited works by notable authors provide foundational insights into risk management for financial institutions, emphasizing liquidity risk, corporate governance, and the integration of theoretical frameworks with practical applications. The synthesis of these findings offers a comprehensive understanding of the evolving landscape of financial risk management, guiding researchers, practitioners, and policymakers in navigating the complexities of risk in contemporary financial contexts.

Enterprises’ Financial Performance and Operational Risk Management: A Theoretical Assessment of the Literature

The scope of the operational risk phenomena and its management has been made clear, among other things, by scandals that have happened in the financial sector. It has become crucial to implement an operational risk management system because performance cannot be achieved without having addressed the operational risk management-related issues. Operational risk management is a process by which businesses identify and evaluate the risks impacting their business. Performance is the culmination of an organization's efforts to reach its goals in the field of management. In fact, due to the negative effects of this kind of failure on a company's performance and stability, operational risk has a significant impact on the performance of a firm, regardless of its industry of operation. The purpose of this article is to examine the impact of operational risk management on the financial performance of companies to review the literature and determine whether risk management has a positive or negative impact on financial performance.

Analisis Penerapan Audit Manajemen dalam Fungsi Keuangan untuk Mengukur Efektivitas dan Efisiensi Manajemen Keuangan Kebun Berangir PT Perkebunan Nusantara IV Labuhanbatu Utara

This study aims to analyze the application of audit management in the financial function to measure the efectiveness and eficiency of financial management at berangir plantation PT Perkebunan Nusantara IV Labuhanbatu Utara. Management audit is an important tool for assessing performance and eficiency in financial management of a plantation company. By utilizing relevant financial data, this research identifies the factors that influence the efectiveness and eficiency of financial management in Berangir Gardens. The research method used is descriptive qualitative with a case study approach. The necessary data were collected through interviews, observation and analysis of documents from PT Perkebunan Nusantara IV Labuhanbatu Utara Berangir Plantation. Furthermore, the data is analyzed using content analysis techniques to identify findings and patterns related to the implementation of audit management and financial performance. The results of the study show that the implementation of audit management in the financial function plays an important role in measuring the efectiveness and eficiency of financial management at Kebun Berangir. These findings can provide insight for company management to improve financial performance and resource management. In addition, this study also provides recommendations regarding corrective measure that can be implemented to increase the eficiency and efectiveness of financial management in these plantation companies.

KINERJA KEUANGAN, MANAJEMEN LABA, DAN PENGHINDARAN PAJAK: APAKAH CSR INDUSTRI KONTROVERSIAL MEMILIKI PERAN?

This study examines the effect of financial performance and earnings management on corporate tax avoidance, and analyzes whether there is a moderating effect of CSR in these relationships. This research data was collected from 91 financial statements and sustainability reports of controversial companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2020 period which were selected by purposive sampling method. CSR data is encoded with content analysis, while research hypotheses are tested with moderate regression analysis. The study found that financial performance negatively affected corporate tax avoidance, while profit management showed no significant effect. In addition, it is also known that CSR does not moderate the effect of financial performance or earnings management on tax avoidance. The results of this study can be used as input for companies to consider improving financial performance in reducing the need for tax avoidance strategies, so that company legitimacy can be maintained. In addition, tax authorities can make tax-intensive related policies to boost financial performance and reduce the level of corporate tax avoidance.

COMPARISON OF THE FINANCIAL PERFORMANCES OF THE COMPANIES OPERATING IN THE RENEWABLE ENERGY SECTOR TRADE ON BORSA ISTANBUL WITH THE ENTROPY BASED TOPSIS METHOD

The financial performance analysis of the companies operating in the energy sector of the countries will be an important indicator for the countries. Especially with the renewable energy sector gaining importance, the most basic way for companies in the renewable energy sector to be successful and ensure their continuity is to pay attention to their financial performance management and take a role in the global market. It is very important for companies to determine the status of their financial performance. Because of this situation, companies use ratio analysis, one of the methods used in the analysis of financial statements, in order to determine the status of their financial performance. It is used to determine the significant relationships between the accounts in the financial statements with the ratio analysis technique. In this method, mathematical relations are established between accounts or groups of accounts. With the results obtained with mathematical relations, it is tried to reach a judgment about the economic and financial structure of the enterprise.
 The aim of this study is to examine 8 companies operating in the energy sector in Turkey and operating in renewable energy sources among the companies registered in Borsa Istanbul (BIST). The financial statements of 8 companies for the years 2020, 2021, and 2022 will be examined using ratio analysis, one of the financial analysis methods, and their financial performance, liquidity, leverage, activity, and profitability will be examined. The reason for choosing the 2020 period is that it can reach the financial statements, and the number of companies in the renewable energy sector is at its maximum level. In the first chapter, energy and energy resources are defined, and the energy sector in the world and in Turkey is examined. In addition, similar studies in the literature are included in this section. In the second part, financial performance analysis and its methods are mentioned, and the multi-criteria decision-making method is mentioned. In the third part, their financial performances are analyzed and interpreted using the ratio analysis method. After these processes, after weighting the criteria objectively with Entropy methods, the companies were ranked according to their performances by making use of the distances from the ideal solution with TOPSIS, one of the multi-criteria decision-making (MCDM) methods. In the last part, the findings obtained as a result of the application were presented, and in the conclusion part, evaluations were made and interpreted.

Inventory and financial performance in the pharmaceutical industry: what transpired over the last two decades?

PurposeThe objective of this study is to explore the structural attributes of the pharmaceutical industry before the onset of the COVID-19 pandemic by examining the relationship between inventory and firm performance and developing a taxonomy of pharmaceutical firms based on the earns-turns matrix.Design/methodology/approachThis study examines the inventory–firm performance linkage, considering both total inventory and its discrete inventory components in pharmaceutical firms. In addition, this research develops a new taxonomy of pharmaceutical firms based on the earns-turns matrix. A large panel dataset of firms in the US pharmaceutical industry was collected for the period 2000–2019.FindingsThe results reveal that strategic groups identified based on this taxonomy show different levels of profitability and inventory turns in the earns-turns matrix. Most pharmaceutical firms moved from the low-right to the top-left section in the earns-turns matrix, indicating that these firms have generally pursued profitability rather than effective inventory management.Research limitations/implicationsThis study explores the structural attributes of the pharmaceutical industry using the earns-turns matrix. This two-dimensional analysis may not, however, capture the full complexity of inventory–firm performance dynamics.Practical implicationsThe mapping of strategic groups on the earns-turns matrix provides a useful tool for visual representations of the dynamics of strategic groups in terms of financial performance and inventory management performance. Practitioners can use the earns-turns matrix to benchmark their firm's position against their competitors.Originality/valueThis study broadens the scope of operations management research by introducing the earns-turns matrix as an empirical validation tool for operational and strategic management theories. This study emphasizes the effectiveness of the earns-turns matrix in analyzing strategic groups of pharmaceutical firms.

Financial Literacy and MSME Performance: Mediation and Moderation Analysis

This research examines the mediating role of access to finance, financial risk management, and competitive advantage in the relationship between financial literacy and Micro, Small, and Medium Enterprises (MSME) performance. This research also tests demographic factors such as the owner's gender, company size, company age, and number of employees in moderating the influence of the variables studied. The sample for this research is MSMEs in Jakarta Province, Indonesia. Five hundred and fifty MSMEs participated in the study using a web-based self-administered questionnaire. The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The research results show that financial literacy positively affects access to finance, financial risk management, competitive advantage, and MSME performance. Access to finance, financial risk management, and competitive advantage positively affect MSME performance and can mediate the relationship between financial literacy and MSME performance. The research also uncovers the moderating role of demographic factors, suggesting that the strength of the connections between financial literacy, access to finance, financial risk attitude, competitive advantage, and MSME performance may vary based on these factors. These findings carry significant implications for owners, managers, and governmental stakeholders, emphasizing the importance of enhancing financial literacy among MSMEs to enhance their performance.

Financial Performance and Green Supply Chain Management in a South African National Electrical Energy Provider

Introduction: The body of literature on green supply chain management (GSCM) in various organisations has increased steadily. However, contextual literature on GSCM is still limited, such as within the electrical energy sector in developing countries such as South Africa. Purpose/objectives: The study examined the relationships between internal GSCM (IGSCM), customer monitoring (CM) and -supplier monitoring (SM), customer-supplier collaboration (CC, SC), and financial performance at Eskom Holdings, the national electrical energy provider in South Africa. Design/ Methodology: The study employed a quantitative approach design on a sample of 350 supply chain professionals drawn from various Eskom depots nationwide. Hypotheses were tested using structural equation modelling based on the SMART partial least squares (PLS) technique. Findings: IGSCM positively impacted customer and supplier monitoring and collaboration, linked to higher financial performance. However, IGSCM negatively impacted financial performance. Practical implications: To managers in the electrical energy sector, the study suggests that implementing IGSCM, SM, CM, CC, and SC activities is key in influencing the level of FP. Similarly, it is important to implement IGSCM activities in tandem with customer and supplier monitoring and collaboration if gains in FP are to be realised. Originality/Value: This study contributes to GSCM literature as it is one of the few studies that explore IGSCM, customer and supplier monitoring, customer-supplier collaboration, and financial performance within a South African national electrical energy provider.

Correlation of Financial Management with MSME Performance: A Systematic Review of Literature

In the midst of global economic turmoil, Micro, Small and Medium Enterprises MSMEs in Indonesia play an important role as the backbone of the local economy. MSMEs face serious challenges that affect the performance of MSMEs. The novelty of this research lies in the approach of a combination of systematic literature review and in-depth empirical research. Involving stakeholders, especially MSME owners and financial management practitioners, provides valuable practical perspectives. This research has important implications for government policy, related institutions, business practitioners, and academia. The findings are expected to be a strategic guide for the development of training programs, more effective financial management models, and policies that support MSME growth. The method used in this study is Systematic Literature Review (SLR) by collecting and analyzing journals related to keywords. Based on the literature study conducted, it was found that the need for more in-depth regarding the relationship between financial management and MSME performance can provide policy guidance for the government and related institutions, as well as practical insights for MSME owners, business practitioners, consultants, and academics in developing financial management models that are more effective and relevant in the context of MSMEs in Indonesia. This research covers important aspects and makes a substantial contribution in the understanding of the relationship between financial management and MSME performance.

Evaluating the Impact of Financial Management Practices on an Organization’s Financial Performance: A Case Study of Hwange Colliery Company

The purpose of the study was to establish the impact of financial management practices on an organization’s financial performance. This analysis was driven by the organization’s declining profitability despite the efforts to deploy cost-cutting initiatives. As a consequence, the research looked into the impact of existing procedures in working capital management, fixed assets management, capital structure and investment practices. The descriptive research design was used in the study and quantitative research approach was adopted. The administrative personnel at Hwange Colliery Company, which numbered forty six, comprised the population and a sample of 30 was used. A questionnaire survey with structured questions was utilized. In the study, regression analysis and Pearson coefficient of correlation were employed to determine the link between the factors of financial performance and financial management techniques. It emerged that the financial management strategies had a substantial impact on Hwange Colliery Company financial performance. To maintain resource efficiency, the research recommends improvements in the areas of accounts receivable management and investment decision that is leading to losses if wrong decision are made.

Corporate ESG Investment: Factors Affecting the Economic Sustainability

ESG investing has gained prominence in sustainable development, yet its widespread adoption remains an evolving process. This paper comprehensively analyzes the factors influencing corporate ESG investment, considering technology, policy, investor performance, and social responsibility. The paper explores the definition and evolution of ESG, emphasizing its importance in promoting responsible business practices. It assesses the impact of emerging technologies like AI, blockchain, and renewable energy solutions on ESG practices. Industry-specific technologies in manufacturing, finance, and transportation sectors are also considered. The role of policies in shaping ESG investment practices is evaluated, examining regulatory frameworks, tax incentives, and reporting requirements worldwide. The effectiveness of these policies in encouraging ESG integration within corporate strategies is assessed. Investor performance is analyzed in relation to ESG, highlighting empirical evidence of its positive impact on financial performance and risk management. The growing demand for ESG-focused investments from institutional investors and its influence on corporate ESG practices are explored. The importance of social responsibility in driving ESG investment is emphasized, showcasing successful case studies of companies aligning their strategies with societal needs, enhancing brand reputation and stakeholder engagement. This analysis provides a holistic understanding of the dynamics surrounding corporate ESG investment. It underscores the need for technological advancements, supportive policies, investor demand, and social responsibility to foster widespread adoption of ESG practices. Ultimately, this paper emphasizes the collective consideration of these factors to promote sustainable development and a resilient global economy.

Organizational, Social, Economic and Financial Management Performance of Cooperatives

This study aimed to determine the level of organizational, social, economic and financial performance of cooperatives when taken altogether and when grouped according to variables and to determine if there is significant difference on the level of organizational, social, economic and financial performance of cooperatives when grouped according variables. This aims to know whether or not organizational, social, and economic performance of cooperatives significantly predict financial management performance of cooperatives. Descriptive-Quantitative design is used in this study and instrument used was the Cooperative Performance Report Questionnaire together with interview questions which were conducted through face to face interview. Organizational, Social, Economic and Financial Management Performance of Cooperatives in Negros Occidental when taken altogether is excellent, very satisfactory, excellent, and satisfactory, respectively. There is significant difference in the level of organizational performance when grouped according to variables. No significant difference in social performance when grouped according to variables. No significant differences in economic performance of cooperatives when grouped according to variables. In financial performance of cooperatives when grouped according to variables a significant difference existed, when grouped as to classification, however, no significant difference existed in financial performance of cooperatives when grouped according to age. Organizational, social, economic performances of cooperatives are predictors of financial performance. There is significant relationship between organizational performance and social performance, organizational performance and economic performance, organizational performance and financial management performance, social performance and economic performance, no significant relationship between social performance and financial management performance, economic performance and financial management performance, respectively. Cooperatives maybe encouraged to sustain excellent organizational, social, economic and financial management performances while very satisfactory and satisfactory performances needs improvement. Programs on the improvement of financial performance of cooperatives may be initiated by cooperatives or by proper authorities’ in-charge. Lastly, close and intensive monitoring of Cooperative performance is recommended.