Reserve Requirements Research Articles

Financial and Efficiency Performance before and after Mergers and Acquisitions in the Indonesian Infrastructure Industry

This study examines the differences in the financial and efficiency performance of several companies before and after Mergers and Acquisitions (M&A). It specifically evaluates the impacts of M&A on infrastructure industry companies listed on the Indonesia Stock Exchange by comparing their performance three years before and three years after M&A. The analysis employs non-parametric statistics, including the Wilcoxon Signed Rank Test, and Data Envelopment Analysis (DEA). The companies’ financial performance is assessed using various financial ratios: Current Ratio (CR), Debt to Equity Ratio (DER), Cash Ratio (CR), Interest Coverage Ratio (ICR), Fixed Asset Turnover (FAT), Total Asset Turnover (TATO), Return on Asset (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The data used is secondary data obtained from the Indonesia Competition Commission (ICC/KPPU), the IDX database, and the financial reports of the companies involved. The findings reveal that, overall, the financial and efficiency performance of the five companies did not improve after the M&A. Surprisingly, only one company, i.e., Adhi Karya, successfully increased its efficiency score following the M&A.

DO FUNDAMENTAL FINANCIAL RATIOS AFFECT THE COMPANY'S STOCK PRICE? INDONESIA EVIDENCE

The objectives of this research aims to examine the effect of corporate fundamental financial ratios on stock prices and to examine whether firm age determine stock prices in the perspective of signaling theory. Here Generalized Least Squares (GLS) approach was used as the main analysis technique, and Ordinary Least Squares (OLS) was incorporated for the robustness test. The research was conducted on companies listed on the Indonesia Stock Exchange during the 2014-2020 period. This study finds that return on assets, solvency ratio, and Tobin's Q positively affect stock prices, that cash ratio has a negative effect on stock prices, and that, interestingly, older companies convey better signals than the younger ones. These findings can assist investors in making quality decisions and company managers in making consideration for developing company strategies. Further, this study comprehensively analyzes the effect of corporate financial ratios on stock prices using the perspective of signaling theory and Modigliani-Miller theory looks at the differences between older and younger companies.

FACTORS AFFECTING THE TOTAL FOREIGN EXCHANGE RESERVE ADEQUACY OF THE CENTRAL BANK: TURKEY AND AZERBAIJAN

International foreign exchange reserves are widely acknowledged as a global medium of exchange that possesses a readily available characteristic. Official public assets, which are foreign assets kept and organized by the monetary authorities of countries, serve as a complement to foreign exchange reserves. Adequate levels of foreign exchange reserves are necessary for nations to meet their payment commitments and sustain the stability of their currency. The primary rationale for the Central Bank's decision to maintain liquid foreign exchange reserves is to establish a safeguard against any speculative assaults or fluctuations in the trade balance. The primary objective of this research was to ascertain the many elements that influence the sufficiency of the aggregate foreign exchange reserves in Azerbaijan and Turkey. The article examined the sufficiency of the gross foreign exchange reserves of the Central Bank of the Republic of Azerbaijan (CBAR) and the Central Bank of the Republic of Turkey (CBRT) based on the ideal reserve ratios recommended by the IMF. Following an extensive examination of theoretical and conceptual literature, this study aims to assess the sufficiency of the Gross Foreign Exchange Reserves held by the CBAR and CBRT. The proposed optimal reserve ratios are utilized to elucidate the reserve adequacy of these countries, while considering the theoretical relationship between the variables. To achieve this objective, a logit regression analysis was conducted using the data spanning from 2012 to 2022. The results indicate that there is a positive and statistically significant relationship between interest rates and the overall adequacy of foreign exchange reserves. Considering the influence of interest rates on economic stability and financial performance, this outcome is anticipated. Furthermore, it was shown that the exchange rate variable exhibited a statistically significant negative impact on the preceding period. The present empirical study offers an overview of the various elements that influence the sufficiency of the aggregate foreign exchange reserves of Azerbaijan and Turkey. The findings of this study offer crucial insights to decision makers regarding the variables that must be considered when overseeing foreign exchange reserves.

Radiological and Clinical Significance of Cervical Dynamic Magnetic Resonance Imaging for Cervical Spondylotic Myelopathy.

The study compared the morphometric changes of the cervical spinal cord using dynamic magnetic resonance imaging (MRI) in patients with cervical spondylotic myelopathy (CSM) and assessed the correlation with kinematic changes, cord cross-sectional area (CSA), and high signal intensity (SI) on T2-weighted imaging (T2WI). Patients with CSM were evaluated through dynamic MRI for sagittal and axial CSA changes of the cervical cord, cerebrospinal fluid (CSF) reserve ratio, degree of cord impingement, cord compression rate, range of motion (ROM), and severity of SI on T2WI. The degree of cord impingement was evaluated using the Muhle grading system. Clinical outcomes were assessed using Japanese Orthopaedic Association scoring and Nurick grade. The study included 191 patients (113 males) with a mean age of 55.34 ± 12.09 years. The lowest sagittal CSF reserve ratio and cord occupation rate were observed during extension. Cord impingement and SI change were more prevalent in extension-positioned MRI. There was no difference between ROM on dynamic radiographs and dynamic MRI. Preoperative cervical ROM was greater in patients with intensely high SI change. Dynamic MRI is useful for evaluating neck movement. Patients with high SI had greater ROM before surgery but worse outcomes after. Neck extension exacerbated cervical stenosis and cord compression compared to flexion, and cervical spinal motion contributed to the severity of CSM. Cervical spinal motion should be carefully evaluated, particularly in hyperextension, to prevent worsening of CSM.

Analisis Rasio Profitabilitas dan Rasio Likuiditas terhadap Kinerja Keuangan pada Perusahaan Maskapai Penerbangan yang Terdaftar di BEI Tahun 2020-2022

The financial performance of airline companies is influenced by natural and non-natural situations and conditions. In 2020-2022, airline companies registered on the IDX experienced unstable financial conditions, caused by non-natural disasters, namely the Covid-19 pandemic. This has an impact on the stability of the airline company's financial performance. This research aims to analyze the financial performance of airline companies based on profitability ratios (net profit margin, return on assets, return on equity) and liquidity ratios (current ratio, quick ratio, cash ratio). The data used in this research is secondary data, while this research uses quantitative descriptive data analysis methods. The results of the research show that the company's NPM, ROA and ROE ratios tend to be negative values, so that the ratio results are below the profitability ratio standard, while the company's current ratio, quick ratio and cash ratio are also below the liquidity ratio standard. Obtaining a ratio that is below standard indicates the company's financial performance is poor and unsatisfactory.

An Empirical Study on Bank Liquidity in India- Panel Data Approach

"Liquidity is critical for the smooth functioning of the banking industry. The study aims to investigate the impact of deposits, profitability, bank size, net interest margin, capital, non-performing assets, gross domestic product, interest rate, statutory liquid ratio, and cash reserve ratio on bank liquidity in India. The research methodology includes balanced panel data of 49 banks for analysis from 2008 onwards. A generalized method of moment technique has been employed to inspect the specified purpose. The results exhibit that non-performing assets, profitability, and deposits have positively influenced bank liquidity. In contrast, bank size, capital, net-interest margin, gross domestic product, interest rate, and cash reserve ratio negatively impact bank liquidity. The statutory liquid ratio has an insignificant effect on the liquidity of banks. The results would be helpful to bank managers, policymakers, and academics to make appropriate policies to preserve bank liquidity without suffering any loss or undefined costs."

LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

The study empirically investigates the impact of liquidity management on financial performance of deposit money bank in Nigeria using time series data from 2011 to 2020. The study analyses the data with the aid of E-view statistical package for descriptive and correlation analysis and STATA 11 after testing for the best estimator from pool OLS, fixed effect and random effect estimator based on Breusch and Pagan LM test, F-test and Hausman test. Deposit to asset ratio has negative but statistically insignificant relationship with returns on assets of DMBs in Nigeria since the P-value of 7.9% is greater than 5% significant level. Cash reserve ratio has positive but statistically insignificant relationship with returns on equity of DMBs in Nigeria since P value of 22.1% is greater than 5% significant level. Loan deposit ratio has negative but statistically insignificant relationship with net interest margin of deposit banks in Nigeria since P value of 91.8% is less than 5% significant level. The study recommends that CBN should strive to improve their regulatory capacity over all DMBs in Nigeria. Special financial court should be established by the government to prosecute serial loan defaulters. Regular training and retraining couple with professional development of staff should be encouraged by the board and management of the bank and CBN. CBN should also set a limit to the level the staff of DMBs can attain without requisite professional and academic qualifications. KEYWORDS: Liquidity Management, Financial Performance, Deposit Money Banks

Coronary microvascular dysfunction in patients with Takotsubo syndrome

BackgroundThe pathophysiology of Takotsubo syndrome (TTS) remains incompletely understood. While coronary microvascular dysfunction (CMD) is a potential pathophysiologic mechanism, evidence is limited. ObjectivesWe sought to evaluate CMD in patients with TTS. MethodsConsecutive patients diagnosed with TTS were included and underwent coronary angiography with invasive microvascular function evaluation, including fractional flow reserve, Coronary Flow Reserve (CFR), Index of Microcirculatory Resistance (IMR), and Resistive Reserve Ratio (RRR). Patients had an echocardiography evaluation during their index admission and at approximately 6 weeks. ResultsThirty patients were included (mean age 74 ±9, 90 % female). Twenty-five patients (83 %) had at least one abnormal coronary microvascular function parameter. Abnormal parameters included CFR<2.5 in 20 patients (67 %), IMR>25 in 18 patients (60 %), and RRR<3.5 in 25 (83 %). Longer time from symptoms to angiography correlated with a higher CFR (r = 0.51, P<0.01), and had an area under the receiver operating characteristic curve of 0.793 (95 % CI 0.60-0.98) for pathologic CFR. Patients with emotional trigger had a lower rate of pathologic IMR compared with non-emotional trigger (36 % vs 81 %, p = 0.01). Follow up echocardiography performed at a median of 1.5 months (IQR 1.15-6) showed an improvement in left ventricular ejection fraction for all patients (from mean of 40 % to 57 %). ConclusionCMD was present in most patients with TTS. The role of microvascular function in TTS may vary according to the clinical presentation and RRR may be more sensitive for the diagnosis of CMD in TTS.

The Influence of Cash Ratio, Net Profit Margin, and Company Size on Dividend Policy

The purpose of this study was to determine the effect of cash ratio, net profit margin and company size on dividend policy in consumer non-cyclicals companies listed on the Indonesia Stock Exchange in 2018-2022. The research method used in this research is quantitative. The population in this study were 58 main board consumer non-cyclicals companies listed on the Indonesia Stock Exchange for the period 2018-2022. The sampling technique used in this study was purposive sampling. So that the sample obtained was 21 consumer non-cyclicals companies listed on the IDX for the 2018-2022 period. The results showed that partially cash ratio and net profit margin had no effect on dividend policy. Meanwhile, company size partially has a significant effect on dividend policy. It can be concluded that cash ratio, net profit margin and company size have an effect on dividend policy. And the Adjusted R-Squared value is 0.736174, which means that the dividend policy is influenced by the Cash Ratio, Net Profit Margin and Company Size by 73.62% and 26.38% is influenced by other variables not examined in this study.

International reserves accumulation and monetary policy autonomy: A nonlinear approach

AbstractIn this article, the relationship between international reserves and monetary autonomy in 21 emerging countries during the period 1999–2019 is investigated. Using a nonlinear panel analysis, we find that international reserves begin to have a positive effect on monetary autonomy when the ratio of international reserves to GDP is around 22%–23%. This result implies that the levels of international reserves are not necessarily excessive in most emerging countries and appear appropriate for supporting their monetary autonomy. Above this threshold, we also identify that the exchange rate regime and financial liberalization are no longer constraints for monetary autonomy. This result suggests a partial validity of the trilemma in emerging countries, with that validity depending on the level of international reserves.

Smart Reserve Planning Using Machine Learning Methods in Power Systems with Renewable Energy Sources

Estimation of the power obtained from intermittent renewable energy sources (IRESs) is an important issue for the integration of these power plants into the power system. In this study, the expected power not served (EPNS) formula, a reliability criterion for power systems, is developed with a new method that takes into consideration the power generated from IRESs and the consumed power (CP) estimation errors. In the proposed method, CP, generated wind power (GWP), and generated solar power (GSP) predictions made with machine learning methods are included in the EPNS formulation. The most accurate prediction results were obtained with the Multi Layer Perceptron (MLP), Long-Short Term Memory (LSTM), and Convolutional Neural Network (CNN) algorithms used for prediction, and these results were compared. Using different forecasting methods, the relation between forecast accuracy, reserve requirement, and total cost was examined. Reliability, smart reserve planning (SRP), and total cost analysis for power systems were carried out with the CNN algorithm, which provides the most successful prediction result among the prediction algorithms used. The effect of increasing the limit EPNS value allowed by the power system operator, that is, reducing the system reliability, on the reserve requirement and total cost has been revealed. This study provides a useful proposal for the integration of IRESs, such as solar and wind power plants, into power systems.

An integrated planning framework for optimal power generation portfolio including frequency and reserve requirements

AbstractElectricity system decarbonisation poses several challenges to network stability and supply security, given renewables' intermittency and possible reduction of system inertia. This manuscript presents a novel integrated system framework to determine optimal generation investments for addressing decarbonisation challenges and achieving cost‐effective electricity systems while ensuring frequency stability and reserve requirements are met at the operational level in a net‐zero system. The novel planning framework is a mixed‐integer bilinear programming problem accurately modelling clustered variables for the on/off status of generation units and seconds‐timescale frequency requirements at an operational and planning level. The benefits of the decision framework and effects of dispatch decisions in a year are illustrated using the Great Britain case study. The results provide optimal trade‐offs and cost‐effective investment portfolios for including detailed modelling of unit‐commitment and frequency stability constraints versus not including them in the planning model. Making investment decisions for a net‐zero electricity system without these constraints can lead to very high system costs due to significant demand curtailment. Although the model's computation burden was increased by these constraints, complexity was managed by formulating them tightly and compactly. Non‐convex quadratic nadir constraints were efficiently solvable to global optimality by applying McCormick relaxations and branching techniques in an advanced solver.

THE IMPACT OF LIQUIDITY RISK ON PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Objective: The study examined the relationship between liquidity risk and the profitability of Nigeria's listed deposit money banks in Nigeria over a 16 years period from 2008 to 2023. Method: Panel data on cash reserve ratio, liquidity ratio, loan to deposit ratio, and return on equity were collected from the annual reports and financial statements of the five systemic banks listed on Nigerian Exchange Group from 2008-2023. Ordinary least square regression analysis, panel unit root test, Hausman test were used in analysing the data. Results: The study found a significant positive relationship between the cash reserve ratio, loan to deposit ratio and profitability of Nigerian deposit money banks. But liquidity ratio has a negative but insignificant relationship with profitability of deposit money banks in Nigeria. Conclusion: Based on the findings, the research recommends that the Central Bank of Nigeria (CBN) must act quickly to lower cash reserve ratios in order to help Nigeria's deposits banks operate more effectively. Banks should engage competent and qualified personnel in order to ensure that right decision are adopted with regard to the optimal level of liquidity and the loan-to-deposit ratio should be fully utilized by banks to support sales initiatives.

An optimal operation strategy of wind farm for frequency regulation reserve considering wake effects

When wind farms (WFs) participate in power system frequency regulation, deloaded control can increase the stored rotational kinetic energy in the wind turbines (WTs), thereby enhancing their frequency support capability. However, due to the wake effects and deloaded control of turbines, this method can also lead to increased power losses. An optimal operation strategy has been proposed to balance power generation and frequency regulation reserve in WFs, taking wake effects into account. Initially, a WF deloaded control model that considers wake effects, and an adaptive combined frequency control model based on kinetic energy reserve, are established for participation in power system frequency regulation. Subsequently, the Covariance Matrix Adaptation Evolution Strategy (CMAES) is utilized to determine the optimal operation allocation of maximum WF output power within the FLORIS wake model, meeting frequency regulation reserve requirements. A comparative analysis of the optimal allocation results under various wind conditions is conducted to test the frequency support capabilities. The results indicate that the proposed strategy can achieve varying levels of frequency regulation reserve, reduce wake losses to maximize output power under deloaded control, and improve frequency support capability.

FINANCIAL PERFORMANCE ANALYSIS OF PT. INDORITEL MAKMUR INTERNATIONAL TBK, ON THE INDONESIAN STOCK EXCHANGE Ismah1), Muryani Arsal 2) Nasrullah3)

The aim of this research is to determine the comparison of financial performance as measured through financial ratio analysis, which consists of: Liquidity Ratios With Indicators Current Ratio, Cash Ratio,Working Capital To Asstes, Solvency Ratios With Indicators Debt Ratio,Debt Ratio, Debt To Equity Ratio, Activity Ratios With Indicators Total Asset Turnover, Receivable Turnover, Working Capital Turnover, And Profitability Ratios With Profit Indicators, Margin. Return On Investment, Return On Equity. The objek of research is PT. Indoritel Makmur Internasional Tbk. The type of research carried out is quantitative. The results of this research show the financial performance of PT. Indoritel Makmur Internasional, Tbk on the indonesia stock exchange 2019-2023. The liquidity value decreases, the solvency ratio value decreases, the activity ratio decreases, the profitability ratio is constant. The results of this research can be used by PT. Indoritel Makmur Internasional, Tbk to evaluate financial performance, espacially those experiencing decline.

Analisis rasio keuangan untuk menilai kinerja keuangan pada PT Unilever Indonesia Tbk Tahun 2022-2023

Financial performance of PT. Unilever Indonesia Tbk is evaluated using financial statement analysis. The purpose of this study is to evaluate the financial performance of PT. Unilever Indonesia Tbk from 2022 to 2023 through financial statement analysis. The time series analysis method is used to understand changes in a company's financial performance over time. It involves the use of various financial ratios including liquidity, solvency, activity, and profitability ratios. This research uses a quantitative descriptive approach, which means that the data collected is quantitative data from the annual financial statements of PT. Unilever Indonesia Tbk (secondary data) for 2022 and 2023. The analysis results show the company's liquidity ratio is below industry standards, indicating challenges in paying off short-term obligations. Although the cash ratio will increase in 2023, the value is still not ideal. In terms of solvency, the ratio of debt to asset and debt to equity indicates a high dependence on debt. However, the company performed well in profitability, with profit margins, return on assets (ROA), and return on equity (ROE) above the industry average, reflecting effectiveness in generating profits and managing assets and capital. The inventory turnover ratio is below industry standard, but total asset turnover shows good performance, indicating effective asset management to generate sales.

ANALYSIS OF LIQUIDITY RATIOS IN ISLAMIC BANKS IN INDONESIA

This article examines the liquidity of Bank Syariah Indonesia through financial ratio analysis in the 2018-2022 financial statements using the liquidity ratio approach. The results of the liquidity analysis of Bank Syariah Indonesia from 2018-2022, in general, can be said that the bank's performance is quite good. This can be seen from the fluctuations in the Current Ratio, Quick Ratio, and Cash Ratio achieved by the company. Keywords: liquidity analysis, Islamic banks, financial ratios,

Analysis of Liquidity and Profitability Ratios for Measuring the Financial Performance of PT Tiki JNE Cikupa in 2021-2023

The times affect the company's financial situation. The level of uncertainty and risk is difficult to measure against company performance. Moreover, the impact of COVID-19 has caused many companies to go bankrupt. However, bankruptcy can also be attributed to unhealthy financial factors and high operating costs. Additionally, management errors in handling finances can lead to a decline in the company's financial performance, often due to insufficient analysis of financial reports, which are essential for evaluating the company and making informed policies. PT Tiki JNE Cikupa is one of the companies in Tangerang Regency that has survived the impact of the COVID-19 pandemic. The purpose of this study is to evaluate the financial performance of PT Tiki JNE Cikupa from 2021 to 2023. This research utilizes a descriptive approach with quantitative analysis tools. Data collection is done through the financial statements of PT Tiki JNE Cikupa. The analysis tool uses financial ratios, namely liquidity, solvency, and profitability. The results of this study indicate that the average liquidity ratios are as follows: the current ratio is 145%, the quick ratio is 145%, and the cash ratio is 108%. For profitability ratios, the gross profit margin and net profit margin are 6%, ROI is 13%, and ROE is 9%. In conclusion, the liquidity and profitability ratios indicate that the financial performance of PT Tiki JNE Cikupa is not good.

Influence of Financial Ratios on Financial Distress in Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesian Stock Exchange

The objective of this study is to ascertain the financial ratios, specifically the Cash Ratio, Return on Investment (ROI), Return on Equity (ROE), and Net Profit Margin (NPM), of Financial Distress in Manufacturing Companies within the Consumer Goods Industry Sector that are listed on the Indonesian Stock Exchange. This study employs quantitative data. The findings and analysis presented in this study are as follows: The multiple linear regression test results indicate that the t-count value is 10.625, more significant than the t-table value of 2.03951. Additionally, the significance level of the t-count is 0.001, which is less than the significance level of 0.05. Therefore, we may infer that the t-count value is statistically significant. The ROI multiple linear regression test results indicate that the t-count value of 2.886 is statistically significant with a p-value of 0.007, compared to a t-table value of 2.03951 and a significance level of 0.05. Therefore, we can infer that the t-count value of 2.886 is significant. The t-value is 2.03951, and the significance level is 0.007, less than 0.05. The multiple linear regression analysis shows that the t-count for ROE is -2.897, which has a significance level of 0.007. Comparing this with the t-table value of 1.69552 at a significance level of 0.05, we may infer that the t-count value of 2.897 is greater than the t-table value of 1.69552, and the significance level of 0.007 is less than 0.05. The multiple linear regression analysis shows that the t-count value for NPM is -1.095, with a significance level of 0.282. Comparing this to the t-table value of 1.69552 at a significance level of 0.05, we may conclude that the t-count value of 1.095 is less than the t-table value and is not statistically significant. The F-table test yielded a result of 2.67 with an error rate of 5%. The acquired F-count was 50.596, more significant than the F-table value of 2.67, indicating a significant difference with a significance level of 0.002, less than the threshold of 0.05.

Research on the Impact of Digital Currency on the Money Multiplier: Insights from the Money Multiplier Formula

This study examines the impact of digital currencies on the money multiplier. Through a comprehensive analysis of various factors, including cash leakage rate, deposit reserve ratio, time deposit ratio, and the proportion of digital currencies in circulation, the study reveals important insights into the relationship between digital currencies and the money multiplier. The findings indicate that the adoption of digital currencies reduces cash leakage rate by providing an alternative to traditional cash, thereby expanding the money multiplier. Digital currencies also influence deposit reserve requirements, either decreasing or increasing the need for reserves, depending on regulatory responses. Furthermore, digital currencies affect the proportion of time deposits, as they lower transaction costs and make long-term deposits more attractive, contributing to the expansion of the money multiplier. Importantly, the study uncovers a positive relationship between the proportion of digital currencies and the magnitude of the money multiplier. As digital currencies gain prominence and their share in the currency system increases, their impact on the money multiplier becomes more pronounced.The study highlights the implications for policymakers, central banks, and financial institutions, emphasizing the need for adaptive strategies in response to the changing landscape of digital currencies. Further research is encouraged to deepen our understanding of the broader implications of digital currencies on the economy and financial system.