Profitability Of Companies Research Articles

Determinan Pertumbuhan Laba pada Perusahaan Industri Makanan dan Minuman Periode 2018-2022

Financial reports can be used as an instrument to assess company profit growth. Profit growth can be measured using financial and non-financial indicators. The researcher re-examined the debt to equity ratio, current ratio, total asset turnover, institutional ownership and independent board of commissioners on profit growth in food and beverage subsector companies listed on the Indonesian stock exchange. Quantitative research is defined as a systematic investigation of phenomena by collecting data that can be measured by performing statistical, mathematical or computational techniques. The population in this study are companies in the group of manufacturing companies listed on the Indonesian Stock Exchange (BEI) during the observation year 2018 - 2022. The sample in this study used a purposive sampling method. This research uses multiple linear analysis methods, testing independent variables is carried out on more than one variable. Data testing was carried out using SPSS and was carried out in stages. This research aims to test and analyze the influence of the variables debt to equity ratio, current ratio, total asset turnover, institutional ownership and independent board of commissioners on profit growth. The population used in this research is food and beverage sub-sector companies listed on the Indonesia Stock Exchange (BEI) for the 2018 - 2022 period.

Pengaruh Struktur Kepemilikan dan Profitabilitas terhadap Manajemen Laba pada Consumers Cyclical Industry

Publication and disclosure of information to the general public are of particular concern to management because the company wants to show good performance and image that will have a long-term impact on the company. The component in the financial report that is first highlighted by stakeholders is related to profit. Thus, companies often take profit management actions only to manipulate profits as a reflection of good company performance. Many factors influence companies to carry out profit management such as ownership structure and company profitability. The study aims to examine the effect of managerial ownership, institutional ownership, and profitability on profit management in the non-primary goods industry listed on the IDX in 2018-2022. The sample uses data from 47 companies from a total population of 151 companies. The study uses descriptive statistics with quantitative methods. So, this study is a secondary study because the data used in the study uses data from the company's financial statements and annual reports. Sampling using purposive sampling because there are established criteria. The results of the study state that there is a significant influence of managerial ownership and institutional ownership on profit management. Meanwhile, the profitability variable does not have a significant influence on profit management.

Driving Renewable Energy Innovation Investments: Is Venture Capital a Novel Strategic Choice? Evidence from China

The relationship between venture capital (VC) and corporate innovation has been a topic of debate. Most existing studies have focused on the general effects of VC on innovation investments, neglecting the specific mechanisms. In the global transition toward low-carbon energy, renewable energy (RE) is increasingly becoming a focus area for VC. However, whether VC can effectively stimulate innovation investments in RE firms remains uncertain. This study addressed these gaps by systematically investigating the impact of VC on renewable energy innovation investments (REII) using data from 114 listed RE companies in China from 2011 to 2023. Our findings demonstrate that VC significantly stimulates REII, with a particularly pronounced effect in high-growth and profitable companies, thereby providing new empirical evidence to the ongoing debate on VC's role in corporate innovation. Furthermore, we uncover that VC not only alleviates financial mismatch but also reduces rent-seeking costs, thereby indirectly fostering innovation. These mechanisms help explain how VC can enhance the innovation capabilities of RE companies. Lastly, we find that joint VC, state-owned VC, and long-term VC are especially conducive to promoting innovation. Based on these findings, we offered targeted policy suggestions to boost the innovation potential of China’s RE sector.

Intensified customer churn Prediction: Connectivity with weighted Multi-Layer Perceptron and Enhanced Multipath Back Propagation

In the telecommunication industry, forecasting customer turnover in telecom networks is crucial for maintaining customers and increasing profits. The proposed model explores the importance of predicting churn, emphasizing its financial impact and strategic significance for telecommunications companies. Manual methods for predicting churn are restricted due to their dependence on basic models and human opinion, leading to less than ideal precision and effectiveness. Artificial Intelligence (AI)-based methods have arisen as promising solutions in light of these limitations. Nevertheless, existing AI methods frequently encounter issues like over-fitting, restricted interpretability, and suboptimal generalization. The presented system introduces a novel technique, named “MBP-WMLP” abbreviated as Multipath Back Propagation with Weighted MLP, to improve prediction accuracy in telecommunication networks. The respective approach utilizes a specialized multi-layer perceptron (MLP) structure with weights, designed for managing the intricacies of telecommunications data. Moreover, an improved multipath back-propagation method is presented to improve the optimization of model training and convergence. The projected model combines weighted MLP and enhanced multipath back-propagation to achieve better prediction accuracy, increased interpretability, and improved generalization capabilities. Furthermore, the proposed technique will be applied for authentic Telco customer churn datasets containing sanitized customer activity features and churn labels indicating subscription cancellations for creating predictive models. The projected approach is intended to show potential for improving customer loyalty tactics and boosting profits for telecom companies in a more competitive market environment.

A rolling horizon heuristic approach for a multi-stage stochastic waste collection problem

In this paper we present a multi-stage stochastic optimization model to solve an inventory routing problem for the collection of recyclable municipal waste. The objective is the maximization of the total expected profit of the waste collection company. The decisions are related to the selection of the bins to be visited and the corresponding routing plan in a predefined time horizon. Stochasticity in waste accumulation is modeled through scenario trees generated via conditional density estimation and dynamic stochastic approximation techniques. The proposed formulation is solved through a rolling horizon approach, providing a rigorous worst-case analysis on its performance. Extensive computational experiments are carried out on small- and large-sized instances based on real data provided by a large Portuguese waste collection company. The impact of stochasticity on waste generation is examined through stochastic measures, showing the importance of adopting a stochastic model over a deterministic formulation when addressing a waste collection problem. The performance of the rolling horizon approach is evaluated, demonstrating that this heuristic provides cost-effective solutions in short computational time. Managerial insights related to different geographical configurations of the instances and varying levels of uncertainty are finally discussed.

Legal Study in Takeover of Shares (Acquisition) in Limited Liability Companies in View of Law Number 40 of 2007

By owning shares, a person or company has the right to a portion of the company's assets and profits. When investors sell or buy shares of a particular company, they change their shareholdings. This condition is caused by market conditions, business performance and investors' strategic decisions. Information recorded on the stock exchange when a transaction occurs can influence the share price and ownership structure of the company. Changes in share ownership can impact market conditions and business performance. First, if shares of a business pass to more experienced or better-connected owners, this can improve management strategies and operational efficiency, which in turn can lead to better results for the company

Asia‒Europe liner shipping network design model considering Arctic route and black carbon tax

The recent improvement in navigational conditions along the Northern Sea Route (NSR) has attracted the attention of academia and industrial circles. For liner companies, the NSR offers a considerably shorter voyage distance than the Suez Canal Route does, making it a viable option to increase their profits. However, the overexploitation and utilization of the NSR may produce large amounts of black carbon, thus damaging the Arctic ecosystem. In light of the aforementioned background, we examine the challenges in designing liner shipping networks while considering the navigability and transit cost of the NSR and the environmental costs (i.e., black carbon pollution taxes) associated with black carbon. To this end, we establish a bi-level optimization model. Specifically, the upper-level model selects a network design scheme that maximizes the liner company's profit, whereas the lower-level model optimizes the slot allocation scheme to evaluate the derived network design scheme from the upper-level model. To solve this bi-level model, we develop a meta-heuristic algorithm embedded with a linear programming model and perform numerical experiments via a practical Asia‒Europe shipping route. Sensitivity analyses are conducted under various navigational conditions and black carbon taxes. The findings demonstrate that the proposed model and algorithm can effectively address the network design problem, offering practical managerial insights for the liner company's daily operations and the policy formulation of green sustainable transportation policies by governments of countries along the NSR. This paper provides a valuable contribution to advancing green shipping practices in the Arctic region.

IDX Food and Beverage Companies Financial Reporting Timelines: Do Profitability, Auditor Opinion, and Company Size Play a Role?

This study aims to analyze the effect of profitability, auditor's opinion, and company size on the timeliness of financial report submissions in companies listed on the Indonesia Stock Exchange (IDX) from 2021-2023. The financial report submission timeline is one of the important components in information disclosure that can influence investment decisions and market confidence. Profitability is measured using Return on Assets (ROA), the auditor's opinion is seen based on the type of audit opinion given, and company size is measured from total assets. This study uses a quantitative method with a multiple regression approach. The research sample consisted of 12 Food and Beverage companies listed on the IDX during the period studied, which were selected using a purposive sampling technique. Secondary data from financial reports and company audit opinions were taken from the official IDX website and the company's annual report. The results of the study indicate that profitability and company size have a positive and significant effect on financial report submission timeliness, while the auditor's opinion does not have a significant effect. This finding indicates that larger and more profitable companies tend to be timelier in reporting their finances, while the type of auditor's opinion is not a determining factor in terms of timeliness. This study contributes to the literature on financial reporting in the Indonesian capital market and provides recommendations for companies and regulators to pay more attention to internal factors that influence financial report timeliness.

Research Trends on the Effect of Good Corporate Governance (GCG) on Company Profitability

Research Trends on the Effect of Good Corporate Governance (GCG) on Company Profitability

LIQUIDITY AND LEVERAGE: THE PERFORMANCE OF SHARIAH AND NON-SHARIAH COMPLIANT COMPANIES

Ratio analysis is the essential technique to learn about a company's financial health, strengths, and weaknesses. The Shariah Compliant Company (SCC) and Non-Shariah Compliant Company (NSCC) are developing very well in Malaysia. However, there have been several debates about the factors that contribute to the company's profitability that serve as a useful measure of its performance. This study aims to expand the knowledge regarding the performance of SCC and NSCC as determined by liquidity and leverage. Hence, 32 SCCs and 20 NSCCs in Bursa Malaysia were selected from the List of Shariah Compliant Securities by the Shariah Advisory Council of the Securities Commission Malaysia. The company’s quick ratio (QR) and debt ratio (DR) represent liquidity and leverage respectively, while performance is represented by return on assets (ROA) and return on equity (ROE) covering the years 2017 to 2022. This research discovered that SCC recorded greater performance than NSCC. A varying relationship exists between both dependent variable and independent variable depending on whether the company is SC or NSC. Liquidity significantly influences the performance of SCC especially based on ROA, while NSCC's performance is significantly influenced by leverage. SCC in Malaysia needs to focus more on its liquidity. As for NSCC, it shall prioritize the leverage utilized by the company. The findings of this research can be the future guidance for researchers, developing companies, and investors who want to explore more about the competitive landscape in Malaysia, particularly in the SC and NSC markets.

Enhancing operation effectiveness by maximizing daily EBITDA as a turnaround strategy execution system to enhance operation performance and profitability

Many companies struggle with strategy implementation due to the complex nature of execution. Some strategy execution systems depend on numerous indicators, making it challenging for managers to oversee effectively. Additionally, during times of financial difficulty, companies require a straightforward turnaround strategy execution system featuring clearly defined Key Performance Indicators (KPIs). This system should empower employees at all levels, fostering a shared sense of alignment and unity as the organization pursues common goals. The researchers aim to provide a simplified system for implementing turnaround strategies that ensures the company's profitability. To achieve this, they recommend utilizing daily Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) as the primary KPI, as it is entirely under operational control. Moreover, EBITDA can be integrated into business processes and remains solely within the purview of operations leaders and employees, thereby cultivating a sense of ownership and accountability. Once the company reaches a certain level of profitability, it can then incorporate additional KPIs. The researchers developed hypotheses based on deductive reasoning following a comprehensive literature review. They analyzed qualitative data from interviews and quantitative data from surveys. After implementing their program in a ferry company, they observed an approximate 33 % increase in revenue, a staggering 300 % surge in EBITDA, and an expansion of the EBITDA margin by over 250 %. The researchers validated their hypotheses through multiple case studies across ferry, shipbuilding, and aircraft manufacturing companies. This research contributes to the development of a straightforward turnaround strategy execution system by translating strategic programs and EBITDA targets into actionable plans for business processes daily. This approach assists leaders and employees in enhancing company culture and systems to achieve improved performance and profitability. The researchers focus on executing turnaround strategies effectively within company operations.

THE EFFECT OF TANGIBLE ASSETS AND GREEN INTELLECTUAL CAPITAL ON PROFITABILITY: THE MEDIATING ROLE OF ESG PERFORMANCE (STUDY ON GO PUBLIC COMPANIES IN INDONESIA)

Integrating sustainable practices into business strategies is essential for enhancing economic performance and mitigating environmental impacts. In Indonesia, where economic growth and environmental sustainability are critical, this study examines the impact of tangible assets (TA) and green intellectual capital (GIC) on the profitability of publicly listed companies. The research investigates how tangible assets and green intellectual capital influence company profitability through the mediating role of ESG (Environmental, Social, Governance) performance. The study uses a dataset of 363 observations from 122 companies listed on the Indonesia Stock Exchange from 2020 to 2023. Path analysis is employed using RStudio to examine the relationships between tangible assets, green intellectual capital, ESG performance, and profitability (measured by ROA). The findings reveal a significant positive relationship between tangible assets and ESG performance, indicating that companies with substantial tangible assets are better equipped to implement sustainable practices. However, GIC does not show a significant direct impact on ESG performance or profitability (ROA). The mediation analysis underscores the critical role of ESG performance in enhancing profitability, demonstrating a significant positive effect on ROA. This suggests that ESG practices are essential in translating tangible and intellectual resources into financial gains. Despite the non-significant direct effects of GIC, its contribution through improved ESG performance highlights the importance of integrating green intellectual capital into corporate strategies for long-term profitability and sustainability. These findings offer valuable insights for corporate managers and policymakers, emphasizing the need for investments in tangible assets and green intellectual capital to foster sustainable practices and improve financial outcomes. The research underscores the importance for companies to focus on corporate social responsibility, environmental, and governance practices. Implementing ESG concepts helps companies build a good reputation, attract investors, achieve operational efficiency, and ensure long-term sustainability. This study supports the implementation of robust ESG frameworks to achieve both economic and environmental goals.

GR-management and public policy

The basis for thinking about the current state of interaction between business and public authorities is the monograph “GR-management of business organizations in modern Russia. Complex analysis and applied technologies” (Degtyarev, A.A., & Teteryuk, A.S. (Ed.). Moscow: Prometej, 2024). The paper notes the consonance of the contents of the book with the trends in the development of the professional sphere of GR (Government Relations) in a modern society with a market economy. Methodologically, the book deals with the concept of interest groups in politics, when the interaction of business with public authorities is described in the system of political governance functionally-strategically (lobbyism), microtactically (lobbying) and technologically-procedurally (GR-management). The monograph includes ideas about conflictual interaction between business and the state and the orientation of GR management towards achieving company profitability and obtaining political rent. However, this interpretation of the axiology of business, as shown in the paper, is insufficient and contradicts the modern understanding of capitalism as “stakeholder” oriented and “inclusive”, in which profit, although the goal of business, is subject to public values. Hence, it is not lobbying (unilateral influence on the public decision-making process), but corporate public policy (socially responsible and partner behavior of business) that constitutes the strategic orientation of GR-management. With such interaction between business and authorities, communication comes to the fore as a search for mutually agreed positions in public policy.

The Influence of Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) Disclosure on Profitability in Companies in the IDX ESG & IDX HIDIV20 Sector from 2020 to 2023

This research aims to analyze and evaluate the effect of Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) disclosures on corporate profitability. The focus of this study is to identify how CSR and ESG practices disclosed by companies affect key profitability indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The object of research is companies listed on the Indonesia Stock Exchange, including IDX ESG Leaders Index (IDX ESG LID) and IDX High Dividend 20 (IDX HIDIV20) in 2020-2023; the sample is 25 companies. In this study, the analysis technique used was Structural Equation Modeling (SEM) PLS conducted using the WARP PLS (Weighted Autoregressive Distributed Lag PLS) method. The results showed that CSR disclosure has a positive and significant influence on corporate profitability, while ESG disclosure has a negative and significant influence. The study's implications suggest that CSR implementation can enhance financial performance, whereas ESG disclosure, despite offering long-term benefits, often requires significant initial investment, which can reduce short-term profitability.

Technological Infrastructure as a Strategy for Profitability in a Construction Company, Peruvian Case

The objective of the study was to determine the relationship between technological infrastructure and profitability in a construction company in Chiclayo, 2024, the methodology was based on an applied study, quantitative approach, non-experimental design, longitudinal and correlational scope, included 12 financial statements for the years 2018 to 2023 and 32 workers; the technique was documentary review of financial statements and the instrument with the data collection form and the survey with two questionnaires, the results showed a regular level of technological infrastructure (53.1%), the economic profitability went from 0.68 in 2018 to 7.22 in 2023, while the financial profitability from 4.59 to 7.22 and the sales profitability went from 1.87 to 13.19; The direct significant relationship between technological infrastructure and profitability in a construction company in Chiclayo was demonstrated; that is, the more the company focuses on improving its investment in the acquisition of technological tools, the greater the profitability of the organization; on the contrary, when the company does not give sufficient importance to improving technology, the company's profitability also decreases.

Eviews Analysis: Investigating the Relationship Tunneling Incentive, Leverage Ratio, and Hedging in Indonesian Stock Exchange-Listed Firms

Manufacturing companies carry out many operational activities, so the more activities carried out, the more problems will be faced, especially problems related to the company's finances. So that the company experiences less than the maximum profit. For this reason, accurate financial management is needed to record and measure manufacturing company costs and profits so that the financial problems that occur in these manufacturing companies can be prevented or minimized through appropriate financial and operational controls. The method utilized in this study is a causal relationship. From the research results obtained using Eviews12 for manufacturing, Tunneling Incentives, Leverage, and Hedging can increase company value. It can also be concluded that Tunneling Incentive, as measured by Distributed Ownership Structure, has no significant effect on Leverage and Hedging. In contrast, Tunneling Incentive, as measured by Concentrated Ownership Structure, has a positive and significant effect on Leverage and Hedging. The managerial implications of this research are how important tunneling is for companies. The emergence of tunneling is due to agency problems between majority and minority shareholders. By holding tunneling by the controlling shareholder, there will be no dividend payment so that the controlling shareholder benefits the minority shareholder.

Pengaruh Struktur Modal, Likuiditas, dan Ukuran Perusahaan Terhadap Profitabilitas Pada Perusahaan Industrials Periode 2021-2023

This research aims to examine the influence of capital structure, liquidity, and company size on the profitability of the company. The data used in this study are secondary data obtained from the company's annual financial statements. This research focuses on companies operating in the industrial sector listed on the Indonesia Stock Exchange for the period 2021 to 2023. The number of samples in this study is 29 companies and 87 samples after excluding outliers. The sampling technique used the purposive sampling method. To test the research hypothesis, a multiple linear regression analysis was conducted using SPSS Statistic 26. The results of this study indicate that capital structure does not have a significant effect on the profitability of the company. Liquidity has a positive and significant effect on the profitability of the company, and the size of the company has a positive and significant effect on the profitability of the company. Simultaneously, capital structure, liquidity, and company size affect the profitability of industrial sector companies listed on the Indonesia Stock Exchange for the period 2021-2023.

Enhancing financial sustainability: the power of intellectual capital in India’s renewable energy industry

The main objective of this research article is to examine the effect of intellectual capital (IC) and its dimensions on the financial performance (FP) of the Indian renewable energy industry, guided by the Resource-Based View (RBV). The study employed data from 36 solar and 39 wind sector companies for six years, from 2017 to 2022. Moreover, the modified value added intellectual coefficient (MVAIC) model was used to measure the company’s IC. Further, the paper uses panel data regression analysis to examine the above-mentioned objectives. The results showed that IC improves the earnings and profitability of solar sector companies, while for wind sector companies, it only helps boost their profitability. Contrary to the expectation, human capital efficiency (HCE) failed to show any effect on the FP of the Indian solar sector companies. However, HCE positively moderates the relationship between structural capital efficiency (SCE) and FP, as well as relational capital efficiency (RCE) and FP. For the wind sector companies, HCE significantly and positively affects the FP; however, HCE negatively moderates SCE and profitability while positively for capital employed efficiency (CEE) and FP. This research adds new data from an industry that has previously received little attention (i.e. Indian renewable energy industry), thus broadening the research on the relationship between IC and FP. Moreover, the study may provide in-depth insights into the MVAIC dimensions as it discovers the moderating effect of human capital in boosting the company’s FP.

Revealing The Impact of ERM and ESG Disclosures on The Performance of Non-Financial Public Companies in Indonesia: An Empirical Study From 2017-2022

This study investigates the impact of Enterprise Risk Management (ERM) disclosure on working capital efficiency, profitability, and firm value of non-financial public companies in Indonesia during the period 2017-2022. Additionally, it examines the moderating role of Environmental, Social, and Governance (ESG) disclosure on the relationship between ERM disclosure and these three variables. The research adopts a quantitative approach, utilizing secondary data from companies' annual reports. Working Capital Turnover (WCT) measures efficiency, profitability is assessed by Return on Assets (ROA), and firm value is evaluated using Tobin’s Q ratio. ERM and ESG disclosures are assessed based on the COSO ERM 2017 framework and GRI Standards, respectively. The findings reveal that ERM disclosure has a significant positive impact on firm value but shows no significant effect on working capital efficiency and profitability. Furthermore, ESG disclosure positively moderates the relationship between ERM disclosure and firm value, highlighting the synergistic benefits of integrating robust ERM practices with comprehensive ESG disclosures. This study underscores the necessity for companies to enhance the quality of their risk management and ESG-related disclosures to improve financial performance and corporate value. By providing empirical evidence on the benefits of ERM and ESG disclosures, this research contributes to the literature and offers practical implications for non-financial public companies in Indonesia.

Climate investments, stock markets, and the open economy

Abstract We analyze the effect of green patents on G7 stock market returns. First, we build a small IS-LM model to identify the relevant channels, augmented with open-economy channels and the Green Tobin’s q (Faria et al., 2022). The model highlights that the intertemporal impacts of greening on stock returns are ambiguous. We then turn to an estimated global vector autoregressive model to more rigorously analyze the effect of monetary and green patenting shocks across the G7. Both shocks influence green patents through real and financial markets. As regards green patent shocks, results suggest that a tension exists over time between promoting pollution reduction and energy efficiency and the profitability of (green and brown) companies in the aggregate. We perform a variety of robustness exercises around our main results. Our results provide something of a challenge to the literature and call for more research effort to understand the various channels that might explain this dynamic—and in turn whether any particular policy recommendations follow.