The prolonged economic turbulence in Yemen has posed significant challenges to the stability and resilience of its banking sector, highlighting the critical need for effective risk governance mechanisms. In this context, the study examines how liquidity, market, credit, and operational risks the core dimensions of risk management affect return on assets (ROA). A balanced panel dataset was constructed from the annual reports of ten banks covering the period 2014 to 2024, selected based on data availability. The analysis employs pooled OLS, fixed-effects, and random-effects estimations, followed by Feasible Generalized Least Squares (FGLS) to ensure robustness.  Correlation results indicate positive associations between all risk dimensions and ROA, with operational risk management showing the strongest relationship, followed by market and liquidity risk management, while credit risk exhibits a weaker link. Regression findings consistently confirm that operational, market, and liquidity risk management significantly enhance profitability, with operational risk management exerting the largest effect. Credit risk management demonstrates a positive but statistically insignificant influence, suggesting a more gradual or delayed impact on financial performance. Collectively, these findings highlight that integrated and well-coordinated risk management practices are essential for sustaining profitability in economically fragile environments.

This study aims to analyze the impact of digital transformation on banking financial performance with firm size as a moderating variable. Banking financial performance in Indonesia shows a fluctuating trend with a decrease in Return on Assets (ROA) from 2.47% in 2019 to 1.59% in 2020, although experiencing an increase in 2022 to 2.01%. Digital transformation has become a strategic solution through reducing operational costs by up to 50-70%, creating new revenue streams, and increasing customer lifetime value. This study uses panel data from 29 banking companies listed on the Indonesia Stock Exchange for the period 2020-2024 with a total of 145 observations. The analytical method employed is Moderated Regression Analysis (MRA) with a Fixed Effects Model. The results show that digital transformation has a significant positive effect on financial performance (β = 0.0089; p = 0.029). Firm size is proven to moderate the relationship between digital transformation and financial performance positively and significantly (β = 0.0004; p = 0.047), indicating that larger banks obtain more optimal benefits from digital transformation compared to small and medium-sized banks. This study contributes theoretically to the Resource-Based View (RBV) in the context of digital transformation and provides practical implications for banking management in designing digitalization strategies tailored to firm size.

This research aims to see the effect of Total Asset Turnover and Debt To Equity Ratio (DER) on Return On Assets (ROA) at PT Indofood Sukses Makmur Tbk which is listed on the BEI in 2010 - 2023. The data used in this research is data secondary in the form of the annual financial report of the company under study. This research uses quantitative data and the data source used is secondary data with an analysis method using multiple linear regression methods with data processing using SPSS v.25. The results of hypothesis testing (T Test) partially state that the Total Asset Turnover variable does not have a significant and positive influence on Return On Assets (ROA) and the Debt To Equity Ratio (DER) variable has a significant and negative influence on Return On Assets (ROA). Simultaneous F Test results of the Total Asset Turnover and Debt To Equity Ratio (DER) variables show a significant influence between Total Asset Turnover and Debt To Equity Ratio (DER) on Return On Assets (ROA).

Sustainable corporate governance plays an essential role in promoting responsible economic growth and enhancing social and environmental well-being in emerging economies. In this context, Environmental, Social, and Governance (ESG) performance has become an important indicator of a firm’s commitment to sustainable development and its alignment with the United Nations Sustainable Development Goals, particularly SDG 8 and SDG 12. This study investigates the impact of Environmental, Social, and Governance (ESG) performance on the financial sustainability of publicly listed companies in Thailand, a rapidly developing Southeast Asian economy where empirical evidence remains limited. Using an unbalanced panel dataset of 965 firm-year observations across multiple industries, multiple regression models were employed to assess the influence of ESG performance on two financial indicators: return on capital employed and return on assets. Granger causality tests were also conducted to explore directional relationships between sustainability performance and financial outcomes. The empirical results reveal a significant negative short-term association between ESG performance and return on assets (ROA), whereas the relationship with return on capital employed (ROCE) is statistically insignificant. The causality analysis indicates that ESG performance Granger-causes ROA, implying that sustainability-driven strategic decisions may precede and influence financial outcomes over time. Additionally, leverage emerges as a key constraint to financial sustainability, negatively affecting both ROCE and ROA. These findings underscore the challenge of striking a balance between sustainability investments and immediate profitability in emerging markets. Policymakers and business leaders are encouraged to promote supportive governance frameworks, reduce financial barriers, and foster ESG-driven practices that contribute to long-term sustainable competitiveness and inclusive development.

Financial performance is a key indicator of success for banking institutions, particularly in the context of managing profitability, debt structure, and the implementation of Good Corporate Governance (GCG). Although numerous studies have highlighted the role of financial performance in sustaining banking competitiveness, empirical research that specifically examines the effects of profitability and debt on financial performance while considering the moderating role of GCG quality in the Indonesian banking sector remains limited. This study aims to analyze the influence of profitability and debt on financial performance and to assess the role of GCG quality as a moderating variable in these relationships for banks listed on the Indonesia Stock Exchange over the 2010–2023 period. The study employed a quantitative approach using secondary data from financial reports, yielding 266 observations selected through purposive sampling. Data were analyzed using multiple linear regression with the aid of SPSS software. The results show that profitability, measured by Return on Assets (ROA), does not have a significant effect on financial performance, which is measured by Return on Equity (ROE), whereas debt, measured by the Debt to Equity Ratio (DER), has a positive and significant effect on financial performance. In addition, GCG quality, proxied by the presence of the Sharia Supervisory Board (Dewan Pengawas Syariah, DPS), has a positive effect on financial performance and strengthens the relationships between the financial variables and firm performance. These findings underline that appropriate debt management and high-quality GCG implementation are critical factors in enhancing banks’ financial performance. The implications of this study encourage banking management to continuously strengthen corporate governance in order to support long-term improvements in financial performance.

This study aims to examine the effect of liquidity and solvency on profitability, with asset management acting as a mediating variable in coal mining companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The research employed a quantitative approach using secondary data obtained from the companies’ annual financial statements. The sample consisted of 10 companies selected through purposive sampling, resulting in 40 firm-year observations in a balanced panel dataset. Liquidity was measured using the Current Ratio (CR), solvency was proxied by the Debt-to-Equity Ratio (DER), asset management was measured through Total Asset Turnover (TATO), and profitability was assessed using Return on Assets (ROA). Path analysis was applied to examine both direct and indirect effects among variables, and the Sobel test was used to determine the mediating role of asset management. The results indicate that liquidity and solvency significantly affect profitability both directly and indirectly through asset management. Asset management is proven to mediate the relationship between financial structure and corporate profitability. These findings highlight the importance of efficient asset management in enhancing financial performance in capital-intensive industries such as coal mining.

Despite high smoking rates and substantial household spending on cigarettes, cigarette sales volume in Indonesia has gradually declined over recent years. Amid these challenging times in the cigarette industry, this research aims to analyze the determinants of profitability and efficiency of cigarette companies in Indonesia from 2019 to 2023. The study uses data from quarterly financial reports of four companies listed on the IDX. In panel data regression analysis, the independent variables include the current ratio (CR), assets turnover (TATO), and debt-to-equity ratio (DER), while the dependent variable is return on assets (ROA). The selected model for panel data regression is the Fixed Effect Model (FEM). The findings reveal that both CR and DER have a significant negative impact on return on assets, while TATO has a significant positive impact on ROA. All the independent variables collectively exert a significant influence on the ROA of cigarette companies. Among these variables, DER has the most significant effect on profitability. These variables explain 51.90% of the variation in ROA. Additionally, the average technical efficiency score of cigarette companies in Indonesia from 2019 to 2023 is 69.0%. Simple regression analysis further shows that the average technical efficiency score significantly and positively influences ROA, accounting for 47.68% of the variation. Overall, these variables explain 99.76% of the variation in ROA. In conclusion, cigarette companies should focus on optimizing asset use and cautiously managing debt levels to attract investors and sustain stable returns even during market fluctuations.

Type of the article: Research ArticleAbstractSustainable innovation has become an important driver of corporate value creation in emerging economies like India, where firms increasingly align their operations with Environmental, Social, and Governance (ESG) practices and Sustainable Development Goal 9 (SDG-9). Despite this rising importance, the financial impact of ESG and SDG-9 innovations on firm performance remains underexplored in the Indian context. This study aims to empirically examine the impact of ESG and SDG-9 innovations on firm value, profitability, and shareholder returns among the top 100 listed Indian companies during the period 2019–2023. Using panel data drawn from the Bloomberg and Refinitiv databases, the study applies multiple regression models and random-effects estimations to evaluate the relationships between innovation indicators (ESG and SDG-9 scores) and financial metrics such as Tobin’s Q, Return on Assets (ROA), and Return on Equity (ROE). The findings reveal that ESG innovation scores do not have a statistically significant effect on firm value and profitability. In contrast, SDG-9 innovation exhibits a positive and significant relationship with both ROA and ROE, indicating that companies integrating infrastructure, industrialization, and innovation goals achieve superior financial performance. On average, firms reporting SDG-9 innovations show a 4.27-point higher ROE and 0.51-point improvement in ROA than non-reporting firms. These results highlight that SDG-9 aligned innovation contributes directly to financial value creation, whereas ESG innovation yields more intangible or long-term benefits, offering critical insights for managers, investors, and policymakers promoting sustainable business growth in India.

The study employs a quantitative methodology and analyses secondary data from financial reports from businesses. Ten businesses are selected as research samples using the sampling technique's purposive sampling. Using SPSS version 27, the data analysis method employs multiple linear regression. With a regression coefficient of -0.732 and a significance value of 0.007, the findings of the regression analysis demonstrate that the liquidity variable, represented by the Current Ratio (CR), has a negative and substantial impact on stock value. With a regression coefficient of -1.923 and a significance value of 0.230, the solvency variable represented by the Debt to Equity Ratio (DER) has a negative but negligible impact on stock value. With a regression coefficient of 0.253 and a significance value of 0.006, the profitability variable represented by Return on Assets (ROA) has a positive and substantial impact on stock value. According to the simultaneous test results, CR, DER, and ROA collectively have a considerable impact on stock value, with a computed F value of 6.087 at a significance level of 0.002. Furthermore, the coefficient of determination results indicate that the profitability, liquidity, and solvency variables can account for 33.7% of the fluctuation in stock value, with additional variables outside the research model influencing the remaining 66.3%.

The Effect of Organizational Restructuring on the Financial Stability and Performance of Sharia Banks: A Case Study on Bank Syariah Indonesia Kcp Padang Bulan Organizational Restructuring Is A Strategy Often Used By Islamic Banks To Improve Efficiency, Stability, And Financial Performance In The Face Of The Ever-Evolving Financial Industry Challenges. This Study Aims To Analyze The Influence Of Organizational Restructuring On The Stability And Financial Performance Of Bank Syariah Indonesia (BSI) KCP Padang Bulan. The Research Method Used Is Quantitative With A Case Study Approach. The Data Used Includes Financial Statements Before And After Restructuring, As Well As Interviews With Bank Management. The Research Findings Indicate That Organizational Restructuring Has A Significant Impact On Bank Stability, As Measured By The Capital Adequacy Ratio And The Level Of Non-Performing Financing (NPF). Additionally, There Was An Improvement In Financial Performance, As Evidenced By Increased Return On Assets (ROA) And Return On Equity (ROE) After The Restructuring Was Completed. However, Restructuring Also Presents Challenges, Such As Increased Short-Term Operating Costs And Internal Adjustments That Take Time. This Research Provides Insights For Islamic Bank Management In Designing Effective Restructuring Strategies To Enhance Competitiveness And Operational Sustainability. The Implications Of This Research Indicate That Organizational Restructuring Needs To Be Carried Out With Careful Planning To Minimize Negative Impacts And Optimize Long-Term Benefits.

This study aims to analyze the effect of dividend policy, debt policy, and profitability on firm value in consumer non-cyclical sector companies listed in the Indonesia Sharia Stock Index (ISSI) during the 2018–2022 period. Firm value is proxied by the company’s book value, while dividend policy is measured using the Dividend Payout Ratio (DPR), debt policy is measured using the Debt to Asset Ratio (DAR), and profitability is measured using Return on Assets (ROA). This research employs a quantitative approach with an associative research design to examine the relationships and effects among variables. The data used in this study are secondary data obtained from officially published annual financial statements. The population consists of all consumer non-cyclical sector companies listed on the Indonesia Stock Exchange, with a sample of 16 companies selected through purposive sampling based on predetermined criteria. Data analysis was conducted using panel data regression with the assistance of EViews 10 software. Model selection was performed through the Chow test, Hausman test, and Lagrange Multiplier test, supported by classical assumption tests and hypothesis testing. The results indicate that, partially, dividend policy and debt policy do not have a significant effect on firm value. In contrast, profitability as measured by ROA has a positive and significant effect on firm value. These findings suggest that a company’s ability to generate profits from its assets is a key factor considered by investors in assessing sharia-based consumer non-cyclical sector companies. This study is expected to contribute to the development of sharia financial literature and to provide practical insights for investors and corporate management in making financial decisions.

The performance of microfinance institutions is always influenced by different factors. It has remained, until recent years, a hot topic among researchers. In our paper, we are particularly interested in studying the determinants of the financial performance of microfinance institutions by taking into consideration the effect of anti-corruption measures. To do this, we selected 29 microfinance institutions distributed across 8 developing countries in the MENA region over the period from 2009 to 2018. We suggest a dynamic panel regression (Generalized Method of Moments: GMM) in which the performance of microfinance institutions is evaluated based on two key measures: return on assets (ROA) and operational self-sufficiency (OSS). Our findings indicate that financial performance of microfinance institutions is positively affected by corruption control and liquidity, while it is negatively influenced by the level of portfolio at risk.

This study examines the influence of capital strengthening, corporate governance implementation, and risk management on financial performance and its implications for the business sustainability of PT BPR Rama Ganda Bogor during 2017–2024. The study is motivated by the critical need to integrate these three elements to maintain the stability and competitiveness of rural banks (BPR) amid global economic challenges, the pandemic, and increasing regulatory pressures. Financial performance is measured using CAR (Capital Adequacy Ratio), LDR (Loan to Deposit Ratio), NPL (Non-Performing Loan), and ROA (Return on Assets), while business sustainability is evaluated based on the bank’s ability to develop products, maintain customer trust, and comply with sustainable finance principles. Descriptive analysis indicates an average CAR of 21.36%, LDR of 90.01%, NPL of 11.30%, and ROA of 3.25%, reflecting adequate capital stability and sufficient liquidity but room for improvement in asset quality. Findings reveal that capital strengthening, corporate governance, and risk management collectively have a significant impact on financial performance. Furthermore, strong financial performance positively influences business sustainability, including regulatory compliance, expansion of sustainable credit portfolios, and maintenance of stakeholder confidence. The study emphasizes that the synergy between capital, governance, and risk management must be internalized integrally into organizational culture and strategy, enabling BPR to manage risks effectively, maintain profitability, and ensure long-term business continuity. The results provide strategic recommendations for BPR and similar microfinance institutions to optimize capital, governance, and risk management as foundations for growth and sustainable operations in an uncertain economic environment.

This study aims to analyze the financial performance of companies listed in the LQ45 index before, during, and after the COVID-19 pandemic. Financial performance is measured using five key ratios: Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt to Asset Ratio (DAR), and Current Ratio (CR). The data used were obtained from the annual financial reports of 45 companies over three periods: 2019 (pre-pandemic), 2020 (during the pandemic), and 2021 (post-pandemic). The analysis method employed is the Wilcoxon Signed Rank Test, as the data are not normally distributed, making it suitable for assessing differences between paired periods. The results indicate significant differences in profitability ratios (ROA, ROE, and NPM) across the three periods, particularly a decline during the pandemic followed by a recovery afterwards. Meanwhile, solvency (DAR) and liquidity (CR) ratios remained relatively stable without significant changes. These findings suggest that the pandemic had a notable impact on the profitability of LQ45 companies, but had less effect on their capital structure and liquidity. This research is expected to provide useful insights for investors, corporate management, and other stakeholders in evaluating company performance during crisis periods and economic recovery phases.Keywords: Covid-19, financial performance, LQ45, liquidity, profitabiliy, solvabilty.

This study aims to analyze the role of Operational Cost Management (OPM) in improving Return on Assets (ROA) in the Indonesian hotel industry. Using a quantitative research approach, data were analyzed through simple linear regression using IBM SPSS Statistics version 26. The results showed that operational cost management has a positive and significant effect on ROA, with a p-value of 0.001 (<0.05). This finding implies that the more efficiently hotels manage their operational expenses such as labor, maintenance, and utilities the greater their ability to generate profits from total assets. Effective operational cost management improves asset utilization, strengthens financial performance, and enables hotels to maintain profitability despite fluctuations in occupancy rates and economic conditions. This study concludes that operational cost management is a strategic instrument for improving financial sustainability and achieving long-term competitiveness in the hotel sector.

This study aims to theoretically and empirically investigate the relationship between intellectual capital (IC) and the financial performance of firms in the U.S. information technology (IT) sector, with a particular focus on Return on Assets (ROA) as a key performance indicator. Data were collected from 345 publicly listed IT companies over the period 2011–2022, yielding 1,792 firm-year observations. The research employed descriptive statistics, correlation matrices, box plot analyses, and multiple regression models to examine the effects of IC and its components, human capital efficiency, structural capital efficiency, and capital employed efficiency on financial outcomes. The analysis revealed that, contrary to conventional expectations and prior literature, IC exhibited a negative and statistically significant association with financial performance, highlighting potential inefficiencies in the utilization of intangible assets within the IT industry. These findings underscore the complexity of translating investments in IC into measurable financial gains, suggesting that firms may be overinvesting or misallocating resources in areas that do not yield immediate profitability. The novelty of this research lies in uncovering an unexpected inverse IC-performance link in a knowledge-intensive sector, thereby offering executives and policymakers new insights into how IC strategies should be re-evaluated and aligned with long-term value creation.

The development of digital technology, particularly mobile banking, can be analogized as the modernization of distribution channels within the logistics industry. In the banking context, the use of mobile banking accelerates transaction flows, increases customer activity volume, and reduces operational burdens that typically arise from branch-based services. These conditions ultimately contribute positively to the improvement of banks’ financial performance through cost efficiency, increased transaction-based income, and the optimization of customer services. This study aims to analyze the effect of e-banking on the financial performance of state-owned banks listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. E-banking is measured using the annual number of e-banking transactions, while financial performance is measured using Return on Assets (ROA). The study employs simple linear regression along with classical assumption tests and hypothesis testing. The results indicate that e-banking has a significant effect on the financial performance of banks.

This study to analyze the effect of Non Performing Loan (NPL), Capital Adequacy Ratio (CAR), and Net Interest Margin (NIM) on Return on Assets (ROA) with Operating Expenses to Operating Income (BOPO) as an intervening variable at PT Bank Rakyat Indonesia (Perser) Tbk. This research employs a quantitative approach using secondary data obtained from the annual financial statements of Bank BRI for the period 2015-2024. The data analysis method used in this study is Structural Equation Modeling (SEM) based on Partial Least Squares (PLS), which allows the examination of both direct and indirect relationship among variables in the research model. The independent variables consist of NPL, CAR, and NIM, the intervening variable is BOPO and the dependent variable is ROA. The results indicate that NPL has a positive effect on BOPO, suggesting that higher credit risk leads to increased operational costs. CAR and NIM have a negative effect on BOPO, indicating that adequate capital and effective interest income management improve operational efficiency contributes to increased bank profitability. The findings also confirm that BOPO mediates the relationship between NPL, CAR, and NIM on ROA. This study is expected to contribute to the academic literature on banking financial management and provide practical insights for bank management in enhancing operational efficiency and sustainable profitability.

Abstract The current study looks at how capital structure affects performance of few Indian electronic manufacturing companies. Decisions on the capital structure of a company are critical to its long-term growth, profitability, and financial stability. Based on secondary information gathered from the annual reports of specific firms listed on BSE and NSE over a five-year period from 2019 to 2024, the study uses a descriptive and analytical research design. Debt–Equity Ratio, Total Debt Ratio, Long-term Debt Ratio, and Short-term Debt Ratio are used to measure capital structure, and Return on Equity (ROE), Return on Assets (ROA), and Earnings per Share (EPS) are used to evaluate firm performance. The data is analyzed using multiple regression analysis, correlation analysis, and descriptive statistics. The findings show a strong negative correlation between leverage and company performance, suggesting that higher debt levels have a detrimental impact on profitability since they raise financial risk and interest costs. In order to improve financial performance and sustainability, electronic manufacturing companies in India should maintain an ideal balance between the debt and the equity, according to findings, which support the trade-off and also pecking order theory related to capital structure. Corporate managers, investors, and legislators can use the study's insightful findings to create financing plans that work for the electronic manufacturing industry. Keywords: Capital Structure, Firm Performance, Debt–Equity Ratio, ROA, ROE, EPS.

The study aimed to demonstrate the impact of insurance service premiums on the return on assets for (5) companies practicing private insurance for the period from 2010 to 2021. The independent variable was measured insurance service premiums in three dimensions: (accident insurance, car insurance, fire insurance). The dependent variable is Return on assets (ROA). The researcher conducted his statistical analysis using the Eviews program using (panel data) models that were adopted in the process of estimating the study model. The data published on the companies' website was relied upon. The researcher used a pooled regression model to test the hypotheses, and the study concluded that insurance service premiums in general have an impact on (ROA), based on the results of the statistical analysis used in the study.