Profitable Strategy Research Articles

What do we really know about the sales records of student-run restaurants (SRRs)?

ABSTRACT The study addresses a gap in the literature on student-run restaurants (SRRs), emphasizing the lack of discussion surrounding the analysis of sales data to predict patrons’ purchasing behaviors. Combining theoretical frameworks from the theory of dining and socio-economic theory, the research aims to deepen our understanding of how patron groups and menu price formats influence operational outcomes in SRRs, specifically, the total number of menu items purchased and average per-person spending. Utilizing sales data from an SRR (n = 1,114) affiliated with a Midwest public university in the US, this study reveals crucial insights into SRR dynamics. Model 1 uncovers how menu price formats, patron groups, and menu categories shape average per-person food spending. Model 2 highlights the revenue advantage of prix-fixe over à la carte formats. Additionally, Model 3 illustrates how patron groups influence menu choices and purchasing spending. Given the results, this study enriches our understanding of SRR operations by integrating both the theory of dining and socio-economic theory and contributes valuable insights to enhance the sustainability of SRR operations through refining menu planning and profit strategies.

Value relevance of accounting information in Morocco: impact of profitability and earnings management strategies

PurposeThis study examines the value relevance of accounting information for publicly listed Moroccan companies and analyzes how profitability affects stock market valuation. Additionally, the study explores earnings management strategies used to avoid losses and earnings decreases.Design/methodology/approachEmpirical tests use the Ohlson (1995) Price model to assess the extent to which accounting information explains variation in stock prices for the period 2012–2021. Moreover, the study applies the Burgstahler and Dichev (1997) approach to analyze earnings management strategies used by listed Moroccan companies.FindingsThe findings suggest a positive and significant relationship between the book value, net earnings and the market value of stocks. Additionally, profitability is identified as a crucial factor significantly influencing the relevance of accounting figures. Moreover, the analysis of the distribution of earnings reveals that listed Moroccan companies engage in earnings management to avoid losses and decreases in earnings.Practical implicationsThe findings hold practical significance for investors, corporate leaders, accountants and stakeholders relying on accounting information for decisions. They also offer insights for Moroccan stock market regulators to improve accounting quality and market efficiency.Originality/valueThe study shows the extent to which stock prices reflect the accounting information from an emerging country perspective, contributing to a predominantly unexplored area of literature regarding economies in transition. Moreover, the study offers crucial insights into the influence of profitability on the market value of listed Moroccan companies and sheds light on the utilized earnings management strategies.

Reinforcement learning-based portfolio optimization with deterministic state transition

Portfolio optimization has attracted substantial interest within the artificial intelligence community due to its significant impact on financial decision-making, risk management, and market analysis. Reinforcement learning fits well with portfolio optimization because their goal is to maximize cumulative returns. In reinforcement learning, state transition probabilities are often unknown and must be estimated. However, in portfolio backtesting experiments, these probabilities are deterministic, making the conventional reinforcement learning approach to estimating state transitions suboptimal for portfolio optimization. Addressing this issue, this study decomposes the portfolio optimization into two core tasks: prediction and profit policy optimization and proposes a novel reinforcement learning framework that assumes deterministic state transition probabilities, comprised of three main modules: feature extraction, prediction, and profit strategy optimization. To model assets more effectively and comprehensively, we capture their temporal features, relational features, and market state. We introduce a patch-wise correlation method and attribute based gate to enhance feature extraction. In the profit policy module, we utilize a deterministic strategy, employing a recursive reinforcement learning method based on Monte Carlo sampling to train the policy network. This enables dynamic adjustments of asset investment weights, ensuring the maximization of cumulative returns. Extensive experiments conducted on cryptocurrency datasets demonstrate the superior performance of our approach, and achieving 36.6%-75.6% improvements in main measurements on cryptocurrency datasets.

Internal Corporate Governance Mechanism And Firms Value Of Selected Companies Listed At The Nairobi Securities Exchange, Kenya

Manufacturing, construction, and allied firms at the Nairobi Securities Exchange (NSE) faced significant challenges, as evidenced by a decline in market value over recent years. Despite effective corporate governance beneficial value in instilling the confidence of investors and enhancing the market value, empirical studies specifically focusing on the manufacturing, construction, and allied sector in Kenya were lacking. These sectors were important in the Big Four Agenda, specifically in affordable housing and manufacturing policies, with manufacturing expected to grow to 15% of GDP by 2030. Drawing from recent market data, it was evident that companies such as Unga Limited, Eveready, Mumias Sugar, Bamburi Cement, Crown Paints, and East African Portland experienced stagnation or decline in their firm value, highlighting the need for a comprehensive examination of corporate governance mechanisms within the sector. This study's main objective was to ascertain how internal corporate governance practices affected the selected firm value in the NSE. The specific objectives included examining the effect of board size, ownership structure, and board independence on firm value, determining the mediating effect of profitability and the moderating effect of foreign capital flows on the relationship between internal corporate governance mechanisms and firm value. The study variables were anchored on Agency Theory, Transaction Cost Theory, Stakeholder Theory, Knight's Theory of Profit, and Efficient Market Theory. The research opted for the explanatory design and collated panel data for 14 firms at the NSE covering the years 2014 to 2023. Data collection relied on secondary sources, primarily annual financial reports, to identify trends and patterns. Data analysis encompassed both descriptive and inferential techniques, including means, standard deviations, and panel regression analysis using the STATA software. Diagnostic tests were conducted to validate the model and address potential issues such as multicollinearity, normality, stationarity, heteroscedasticity, and model specification. The study tested various hypotheses and found that board size positively affected firm value (p = 0.001 < 0.05, t = 3.41 > 6, β = 0.075), with the optimal size around nine members. Board independence was positively correlated with firm value (p = 0.006 < 0.05, t = 2.76 > 6, β = 0.008), emphasizing the importance of having independent directors. The study also found that ownership structure, while balanced, did not significantly influence firm value (p = 0.0287 > 0.05, t = 1.12 < 1.96, β = 0.065), indicating other governance mechanisms may be more critical. The mediating variable profitability significantly mediated corporate governance and firm value association with a β =0.344, (p = 0.025 < 0.05). The moderating variable foreign capital inflow was found to be a positive and significant determinant of foreign capital inflow. It explained 10.002% variance of firm value with a Beta of 1.85831. Recommendations for corporate managers include optimizing board size, increasing board independence, and enhancing profitability strategies. Policymakers are advised to promote balanced ownership structures and foreign investment. Stakeholders should advocate for governance practices that align with these findings to ensure sustainable firm value.

THE INFLUENCE OF CORPORATE SUSTAINABILITY ON TAX DISTRIBUTION AND DIVIDEND DISTRIBUTION

This study investigates the impact of corporate sustainability on effective tax rates and dividend payout ratios among companies listed in the LQ45 index over the period from 2018 to 2022. Corporate sustainability is increasingly recognized as a crucial aspect of business strategy, influencing financial structures and shareholder value distribution. Utilizing a panel data analysis taken from Bloomberg, we explore how sustainability growth rate affect their tax strategies and dividend policies. Our findings reveal a nuanced interaction between corporate sustainability and fiscal obligations. Specifically, the study indicates that higher levels of corporate sustainability correlate with a lower effective tax rate; however, this relationship is statistically insignificant. This suggests that while sustainable practices may influence tax-related decisions, other factors such as changes in tax legislation, profitability, and tax planning strategies might play more pivotal roles in determining the effective tax rate. Conversely, the impact of corporate sustainability on dividend payout ratios is both negative and statistically significant. Companies with robust sustainability practices tend to reinvest a greater portion of their earnings back into the business to support sustainable growth and long-term value creation, leading to lower dividend distributions. This finding highlights the prioritization of capital retention over immediate shareholder returns among sustainably focused firms in the LQ45 index. This research contributes to the understanding of how sustainability initiatives intersect with financial policies within Indonesian listed companies. The insights provided could help investors and policymakers better understand the financial implications of sustainability growth rate, particularly in emerging markets where such practices are gaining momentum. The results also suggest areas for further research, particularly in exploring the indirect pathways through which sustainability might influence corporate financial policies.

Book Value Forecast Quality: Financial Versus Nonfinancial Firms

ABSTRACTThis study investigates the quality and usefulness of analysts’ book value forecasts for financial firms relative to nonfinancial firms. We examine whether forecast properties (accuracy, bias, and dispersion) of book value forecasts and the market reaction to unexpected book value surprises differ between financial and nonfinancial firms. We find that book value forecasts are more accurate, less biased, and less dispersed for financial firms compared to nonfinancial firms. In addition, we show that these results are not simply a result of differences in earnings per share (EPS) forecast quality. We also provide evidence that book value forecasts are incrementally helpful to analysts in forecasting earnings for financial firms. In addition, we find evidence that the stock price drift following an earnings announcement is more pronounced when book value per share (BPS) surprises are considered in addition to EPS surprises. However, this finding only holds for financial firms. We find that this delayed reaction can form the basis for a profitable trading strategy.

Identification of short term Fast-Slow patterns using the Nasdaq-100 future through a technical analysis application

In recent decades, the analysis of atypical behavior in asset prices has become relevant, since participants in financial markets recognize that the idea of perfect markets is distanced from reality. The purpose of this research is to present a trading strategy through the identification of short-term chart patterns, based on anomalies in the future price of the Nasdaq-100 index. The historical backtesting methodology will be used in the technical analysis of the asset to quantify the performance of the identified patterns. It will be verified that the anomalies in the stock index are not temporary; rather, they persist and recur on a recurring basis, especially in intraday events. Additionally, the best performing trading session will be determined. This work will provide retail traders with trading guidelines to approach the markets with a statistically profitable strategy.

What drives stock returns across countries? Insights from machine learning models

We employ machine learning techniques to examine cross-sectional variation in country equity returns by aggregating information across multiple market characteristics. Our models reveal significant return predictability, which translates into discernible patterns in portfolio performance. In addition, variable importance analysis uncovers a sparse factor structure that varies across forecast horizons. A handful of critical predictors—such as long-term reversal, momentum, earnings yield, and market size—capture most of the return differences, while country risk measures play a minor role. Consistent with the partial segmentation perspective, return predictability persists in small, illiquid, and unintegrated markets and weakens over time as the constraints on capital mobility diminish. As a result, attempts to forge them into profitable strategies can be challenging at best.

Dynamic evolution of causal relationships among cryptocurrencies: an analysis via Bayesian networks

AbstractUnderstanding the relationships between cryptocurrencies is important for making informed investment decisions in this financial market. Our study utilises Bayesian networks to examine the causal interrelationships among six major cryptocurrencies: Bitcoin, Binance Coin, Ethereum, Litecoin, Ripple, and Tether. Beyond understanding the connectedness, we also investigate whether these relationships evolve over time. This understanding is crucial for developing profitable investment strategies and forecasting methods. Therefore, we introduce an approach to investigate the dynamic nature of these relationships. Our observations reveal that Tether, a stablecoin, behaves distinctly compared to mining-based cryptocurrencies and stands isolated from the others. Furthermore, our findings indicate that Bitcoin and Ethereum significantly influence the price fluctuations of the other coins, except for Tether. This highlights their key roles in the cryptocurrency ecosystem. Additionally, we conduct diagnostic analyses on constructed Bayesian networks, emphasising that cryptocurrencies generally follow the same market direction as extra evidence for interconnectedness. Moreover, our approach reveals the dynamic and evolving nature of these relationships over time, offering insights into the ever-changing dynamics of the cryptocurrency market.

Deep Reinforcement Learning Approach to Portfolio Optimization in the Australian Stock Market

The future of portfolio management is evolving from relying on human expertise to incorporating artificial intelligence techniques. Traditional techniques such as fundamental and technical analysis will eventually be replaced by more sophisticated deep reinforcement learning (DRL) algorithms. However, it is still a long way from designing a profitable strategy in the complex and dynamic stock market. While previous studies have focused on the American stock market, this paper applies two DRL algorithms, the proximal policy optimization (PPO) and the advantage actor–critic (A2C), to trade the constituent stocks of the Australian Securities Exchange 50 (ASX50) Index. This paper also incorporates a weighted moving average into the action space and introduces a transaction threshold to help agents minimize trivial trades that lead to high transaction costs. The results are presented and benchmarked against the ASX50 Index. The A2C agent was better at following trends and had the higher upside potential but can suffer from more severe damage during bearish markets. On the other hand, the PPO agent had the lowest annual volatility and the highest maximum drawdown, which is more helpful in a bearish or volatile market.

Indonesian Islamic Banks’ Post-Pandemic Profitability Alignment with Sustainability Goals

Purpose — The Islamic banking sector in Indonesia has recovered from the COVID-19 pandemic. Despite the sector’s resilience to the crisis, Islamic banks have lower levels of profitability than their conventional counterparts. They therefore need to optimise profitability as well as implement sustainability practices due to their high reliance on income from intermediary functions and their core principle of protecting life and preventing harm. This study aims to optimise the post-pandemic profitability of Indonesian Islamic banks while seeking to align profitability with sustainable development goals (SDGs). Design/Methodology/Approach — The model is developed based on the combination of linear programming and financial analysis, with constraints considering banking regulations and practices. The model highlights financing product types, financing fields of business, and types of deposit products that contribute to higher profits and support sustainability practices. Findings — The recommended financing product types, financing fields of business, and deposit product types lead to profitability growth of up to 85 per cent, even better than the pre-pandemic performance of Islamic banking and the overall Indonesian banking industry. This research also finds that Islamic banks’ strategy for profit optimisation is consistent with the increasing support for SDGs. Originality/Value — There is a lack of literature discussing the alignment of Islamic banks’ profit optimisation with the SDGs. This study contributes to the literature by aligning the Islamic banks’ profitability strategy with sustainable financing. Research Limitations/Implications — The study is expected to promote the implementation of sustainability practices as well as increase the profitability of Islamic banks, drawing from evidence in Indonesia.

DETERMINANTS OF TAX AVOIDANCE IN INDONESIAN TECHNOLOGY LISTED COMPANIES

This study examines the effect of Profitability (Return On Sales and net Profit Margin), Sales Growth and Business Strategy on Tax Avoidance practices and Financial Distress as moderators suspected of influencing corporate tax avoidance practices. The quantitative method used in this study, multiple linear regression, is the right choice for conducting further analysis, with a range of observations of financial reports on technology companies listed on the Indonesia Stock Exchange (IDX) during 2019-2023, with a purposive sampling technique to ensure obtaining information related to the measurement indicators used, in 15 qualified companies, using IBM SPSS Statistics 26.0. The study concluded that Return On Sales, Net Profit Margin, and Business Strategy influenced Tax Avoidance practices. In contrast, the Sales Growth variable did not influence Tax Avoidance, and Financial Distress only moderated the effect of ROS on Tax Avoidance. In practice, not all management strategies to increase sales absorb too high costs, so financial managers do not choose to practice tax avoidance. The implications of this study are expected to provide an overview to users of financial reports, especially external parties, to assess the firm's performance in complying with its tax obligations based on the factors in this study.

Nanostructure-assisted drought tolerance in olive trees (Olea europaea L.): the role of Fe2O3-graphitic carbon.

Olive trees are known as one of the most iconic crops in the world. Considering the increasing water deficit worldwide, implementing some profitable and empirical strategies can be inevitable upon exposure to drought stress. Therefore, the present study aimed at clarifying the beneficial role of exogenously foliar application of Fe2O3 modified carbon nitride nanostructures (control, FeSO4, C3N4 and Fe2O3/g-C3N4) to "Shengeh" olive cultivars grown at different watering levels (100, 75, and 50% ET) in two experimental years (2022 and 2023) and the pomological attributes, physiological and biochemical changes happening in the treated leaves and fruits were discussed. The results indicated that drought stress caused a significant decline in pomological attributes in this experiment, and treatments could remarkably make up for this damage. Overall, Fe2O3/g-C3N4 outperformed as compared FeSO4 and C3N4 alone, which were also efficacious in conferring tolerance to the water deficit stress. Conversely, severe drought stressed-olive fruits showed higher oil content percent in the fresh matter and water use efficiency (WUE) in oil by 30% and 52.5%, respectively, as an average of results of two years, and after Fe2O3/g-C3N4, these features in olive plants subjected to severe drought improved by an average of 35% over two years. Ca2+ and K+ in olive plants under severe drought stress declined by 50% and 83% in 2022 and 46% and 24% in 2023, while Na+ increased in the plants exposed to 50%ET stress by 48% and 57% in two successive experimental years respectively. The application of Fe2O3/g-C3N4 remarkably improved the contents of Ca2+ and K+ by 101.5% and 369%, respectively, as an average of two years. Conversely, this beneficial treatment led to a significant decline in Na+ levels by 30% in 2022 and 2% in 2023 under stressful conditions. Moreover, it decreased the 'osmolytes' content, caused a smaller decline in chlorophyll levels, and resulted in higher relative water content occurring in the treated olive leaves. The reduction of oxidative markers was a result of the increased enzymatic activity after the use of Fe2O3/g-C3N4. Therefore, this treatment is a promising strategy to achieve improved resistance in olive plants in the future.

Research on Profitability Strategies of Online Audio Platforms in the Context of AI-Enabled Era - Case study of the Ximalaya

Research on Profitability Strategies of Online Audio Platforms in the Context of AI-Enabled Era - Case study of the Ximalaya

Hydrogel in Drylands: A Review

Significant amounts of water and nutrients are held in reserve by hydrogels due to their three-dimensional polymeric network. The capacity of hydrogels to absorb water lowers the frequency of irrigation, which is beneficial for agricultural application. When applied to soil, it functions well as a nutrient mobilizer and a reservoir for water. Applying hydrogel will be a profitable and advantageous way to boost agricultural crop yield and sustainability in settings where moisture is scarce. Because of their three-dimensional polymeric network, hydrogels can store large amounts of water and nutrients. Because hydrogels can absorb water, less irrigation is required, which is advantageous for agricultural use. It works well as a water reservoir and nutrient mobilizer when added to soil. In environments where moisture is limited, applying hydrogel will be a profitable and beneficial strategy to increase agricultural crop productivity and sustainability.

Global reversal strategy: equilibrium of endogenous trading?

PurposeAfter considering the price reversal among countries' indices as a global, coordinated and generalized phenomenon, this paper aims to examine the profitability of the reversal strategy internationally and find an economically essential and predictive reversal effect. Indices' portfolios form based on the prior 48 months; prior losers outperform prior winners by 8.86% per year during the subsequent 48 months. Interestingly, the reversal effect is substantially stronger for emerging countries, yielding 14.04% annually. It remains profitable post-globalization, countering the concern of whether the integration of equity markets synchronized the price reversal worldwide. Returns' differences consistent with portfolio formation approaches are also observed.Design/methodology/approachThis study follows the methodology De Bondt and Thaler (1985) set out and uses the same methodological framework Wouassom et al. (2022) put forward. Nevertheless, this study does not focus on stocks. Still, it employs global equity indices from the viewpoint of an international investor who can switch between worldwide equity indices using a contrarian trading strategy.FindingsMy findings indicate that reversal strategies with overlapping portfolios are profitable over the entire sample period and every formation and holding period. These returns are highly statistically significant and vary considerably from one horizon to another. More importantly, the reversal strategies remain, on average, profitable and significant in the period post-1994 but are not particularly distinctive, which implies that the reversal effect survives the globalization impact and indicates that the integration of equity markets together with the international correlation among markets do not synchronize the prices reversal effect around the world given that.Research limitations/implicationsFurther work would be recommended to study a more extended period dating back to the nineteenth century or the Victorian Era, characterised by rapid economic development in almost every domain, to verify if reversal is historically compensation for carrying risks exclusively during contraction.Practical implicationsMy analysis takes on particular significance given the association between lagged market movement in share prices and investors’ optimism that appears among traders, generating an increasing reversal effect (Siganos and Chelley-Steley, 2006) and has direct implications for predicting and controlling trading costs associated with asset allocation strategies.Social implicationsThe difficulty with using the reversal strategy to uncover the long-term return reversal effects in the equity markets today resides in the fact that the globalization of the economy has fuelled the concentration of assets within institutional investors. The critical insight is that the concentration of equity in the hands of institutional investors activated international equity trading. These institutional investors seek to maximize their shareholder value from the opportunity by simultaneously dealing in many markets while constructing and holding portfolios that include assets from various countries using highly profitable investment strategies such as reversal.Originality/valueTo the best of the authors’ knowledge, this is the first paper to show an easily implemented contrarian strategy that switches back and forth between country indices and generates extraordinarily high abnormal returns of more than 8.86% per annum. We also show that these returns compensate for global risks and for investors ready to take them during contraction.

Research on Profitable Strategies for Individual Investors Base on improved momentum strategy

Research on Profitable Strategies for Individual Investors Base on improved momentum strategy

How does adopting sustainable supply chain quality management improve corporate financial performance? A transaction cost perspective

This article examines the impact of adopting SSCQM on the financial performance of companies, based on transaction theory. The main objective of this study is to assess how reducing transactional costs through SSCQM, or within its framework, can improve the financial performance of Moroccan companies. The methodology is based on quantitative analysis, using an econometric model (GLM-Gamma) to test the association between SSCQM adoption and financial performance. The results of the study show that various SSCQM-related practices positively affect companies’ financial performance. Managing sourcing costs significantly improves profit margins. Contracts focusing on quality and sustainability, and minimizing the risk of non-compliance, also boost financial performance. However, the ability to adapt and respond to regulatory changes shows no significant impact. Optimizing production processes and investing in green technologies are proving to be profitable strategies, with significant improvements in financial performance. Customer engagement and transparency and traceability of operations also have a positive impact. These results suggest that SSCQM practices, such as the adoption of green technologies and transparency policies, are beneficial for companies’ financial performance. The originality of the study lies in its approach, which links transaction theory to sustainable supply chain management, an angle little explored in existing literature. The study confirms that SSCQM is an effective strategy for improving corporate financial health by minimizing transactional costs. It recommends integrating SSCQM into companies’ management strategies to boost their competitiveness, financial performance and sustainability.

Photovoltaics for reaching Net-Zero Energy Standard in Educational buildings

Buildings should become energy-neutral to reduce pressure on the planet's resources and the atmosphere. Then cities must be energized with in-site renewables integrated to reach low-impact sustainable cities. This research project is an initial step to figuring out the feasibility of reaching the Net Zero Energy condition in the Architecture Department buildings of the University of Cuenca, as a case sample of higher-educational facilities located next to the equator and on the highlands of the Andes mountains range. In this research we had just determined the photovoltaic (PV) potential to reach the actual energy requirement as an initial step, to do so, we had virtually constructed the building facilities and obtained the building energy requirements, considering full power requirements measured before the COVID restrictions. As the main results, we determined, that 88,6 % of the 2019 energy requirements could be solved with solar PV considering roof availability and architectural restrictions. The financial analysis also reveals that it is a profitable strategy. Next research will determine that comfort levels are adequate to foresee the total requirements to reach the NZEB standard.

TikTok influencers’ credibility and its impact on local cosmetic purchase intention

Influencer marketing has become a highly profitable strategy in today’s marketing landscape, with TikTok emerging as a significant platform influencing consumer behaviour. This study examines the impact of TikTok influencers on the Malaysian cosmetic industry, focusing on credibility traits (i.e., trustworthiness, expertise, and attractiveness) and their influence on consumers’ purchase decisions. Using a quantitative approach, data were collected via an online Google Form survey targeting female TikTok users aged 18 to 34, who are currently residing in the Greater Kota Kinabalu area. The study adjusts established measurement items for TikTok and analysed data using SmartPLS 4.0. Results indicate that the trustworthiness and attractiveness of TikTok influencers positively affect consumers’ intention to purchase local cosmetics, while expertise shows no significant impact, possibly due to the target audience’s age and familiarity with cosmetics. These findings have practical implications for cosmetic brands, highlighting the importance of trustworthiness and physical attractiveness in influencer endorsements, thus offering valuable insights for the cosmetic industry.