Return On Assets Research Articles

Analisis Perbandingan Rasio Profitabilitas Sebelum dan Sesudah Fatwa Boikot MUI Pada Perusahaan Food & Beverage Yang Terafiliasi Israel Di Bursa Efek Indonesia

This study was conducted to compare profitability ratios using Return On Assets (ROA), Return On Equity (ROE), Net Profit Margin (NPM), and Operating Profit Margin (OPM) before and after the MUI Boycott fatwa on Food Beverage Companies affiliated with Israel on the Indonesia Stock Exchange (IDX). The data used were secondary data obtained from the Indonesia Stock Exchange (IDX) using the financial reports from Eleven FB companies in the third fourth quarters of 2023 and the first and second quarters of 2024. The analysis technique used were quantitative comparison. The results of this study indicate that the Profitability Ratio of massive Food Beverage Companies boycotted because they were affiliated with Israel on the Indonesia Stock Exchange has decreased from the period before and after the MUI Boycott Fatwa was issued

Investigating the Effect of Digitalization in Financial Inclusion on the Financial Performance of Deposit Banks in Türkiye

This study investigates the impact of digitalisation in financial inclusion on the financial performance of deposit banks operating in Türkiye between 2010 and 2021. The study's dependent variables are the financial performance indicators, namely the return on assets (ROA) and return on equity (ROE). The number of ATMs and data related to Internet banking are explanatory variables, while asset size, equity ratio, and economic growth are control variables. The analyses conducted using the Two-Step System GMM method reveal that the lagged values of profitability indicators, the number of internet banking customers, financial transactions made through internet banking, equity ratio, asset size, and economic growth have a positive effect on profitability, while the number of ATMs has a negative impact.

The Effect of ESG Data of Companies on Financial Performance: A Panel Data Analysis on The BIST Sustainability Index

The relationship between companies' environmental, social, and governance (ESG) data and their financial performance is of significant interest. The primary aim of this study was to investigate whether the ESG scores of companies in the BIST Sustainability Index impact their financial performance. By analysing the relationship between ESG scores and financial performance indicators of 26 companies, whose ESG scores were calculated by S&P Global for the period 2018-2022, using the panel data analysis method, we found compelling results. ESG factors were found to have a significant and positive effect on return on assets (ROA), return on equity (ROE), net profit margin (NPM), and asset growth (AGR) but a negative effect on the market-to-book ratio (MBR).

The Intervention Role of Profitability in the Relationship between Liquidity and Intellectual Capital to Firm Value in Digital Banks on the IDX

This study aims to analyze the effect of Liquidity and Intellectual Capital on Firm Value with Profitability as an intervening variable. The population of this study were Digital Bank subsector companies listed on the Indonesia Stock Exchange during the 2021-2023 period, with a sample of 7 companies. Liquidity is proxied by Loan to Deposit Ratio (LDR), Intellectual Capital with Value Added Intellectual Coefficient (VAIC), Profitability with Return on Assets (ROA), and Firm Value with Price to Earnings Ratio (PER). The data were analyzed using the panel data regression analysis method processed with EViews 12 software. The results showed that Liquidity and Intellectual Capital had no effect on Firm Value. Liquidity and Intellectual Capital have a significant positive effect on Profitability. Profitability is able to mediate the effect of Liquidity and Intellectual Capital on Firm Value, with indirect-only mediation effect.

Analisis Rasio 3 - Bank Komersial dengan Uji - Rls: Implikasi dan Bukti Kinerja Keuangan Bank Indonesia dan Malaysia

Abstracts This research aims to analyze the interaction between commercial banks in Indonesia and commercial banks in Malaysia on bank financial performance reports seen from the ratio aspect of bank financial reports. The method used in this research is a quantitative descriptive method by knowing the existence of the Dependent variable value on the variable (Independent) or more without making relationships and comparisons with other variables. In terms of bank value using the 3 - RLS implementation route, namely, the bank's Profitability Ratio is calculated by looking for Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Operating Expenses / Operating Income (BOPO). The Liquidity Ratio is calculated by finding the Quick Ratio (QR), Loan to Deposit Ratio (LDR), and Loan to Assets Ratio (LAR). The Solvency Ratio is calculated by looking for the Capital Adequacy Ratio (CAR) and Debt to Equity Ratio (DER). The results of this research evaluate and see the feasibility of 3 commercial banks in Indonesia and Malaysia against the Central Bank using the Triple - RLS method concept. As for commercial banks, there is policy integration with central bank criteria. Therefore, there needs to be discipline and commitment in improving financial performance in financial reports between Indonesian and Malaysian commercial banks.

Pengaruh Rasio Likuiditas dan Rasio Aktivitas Terhadap Profitabilitas Pada PT. Surya Toto Indonesia, Tbk

This study aims to analyze the influence of liquidity ratio and activity ratio on profitability in PT. Surya Toto Indonesia, Tbk. Liquidity ratio is measured using Current Ratio (CR) and Quick Ratio (QR), while activity ratio is measured using Total Asset Turnover (TATO) and Inventory Turnover (ITO). The research method used is a quantitative method with a multiple linear regression approach. The data used in this study is secondary data obtained from the financial statements of PT. Surya Toto Indonesia, Tbk during the 2018-2022 period. The results show that the liquidity ratio and activity ratio have a significant influence on profitability as measured by Return on Assets (ROA). Current Ratio (CR) and Total Asset Turnover (TATO) have a positive and significant effect on profitability, while Quick Ratio (QR) and Inventory Turnover (ITO) have a negative but insignificant effect. These findings indicate that companies should pay attention to liquidity management and their operational activities to increase profitability.

Green Capital Dynamics: Investigating the Impact of Capital Structure on Profitability among IDX LQ45 Low Carbon Leaders in Indonesia

Research Aims: This study explores the nexus between capital structure and financial performance among firms listed in Indonesia's IDX LQ45 Low Carbon Leaders. The study focuses on capital structure, operationalized through leverage (Total Liabilities/Total Assets), and financial performance metrics, specifically Return on Assets (ROA) and Return on Equity (ROE). Design/methodology/approach: The research employs the Hausman test to select appropriate panel data models, subsequently validated by the Breusch-Pagan test. This rigorous approach ensures robust model selection between fixed-effect and random-effect specifications. Research Findings: Based on ROA and ROE measurements, leverage's influence on financial performance does not consistently show significant statistical importance. Theoretical Contribution/Originality: This study enriches financial literature by supporting the findings of Miller and Modigliani, which indicate that capital structure does not directly impact profitability, particularly in the context of companies listed in the IDX LQ45 Low Carbon Leaders in Indonesia.

Determinant Factors of Firm Value in Coal Mining Firms: Evidence from Indonesia

This research investigates how firm value in coal mining companies is influenced by profitability, leverage, and corporate governance between 2014 and 2020. Utilizing a quantitative approach with a descriptive methodology, the study analyzed secondary data from 21 coal companies, totaling 147 data points, sourced from the Indonesian Stock Exchange (BEI). Findings reveal that Debt-to-Equity Ratio (DER) and the presence of an Independent Board of Commissioners positively affect firm value. Conversely, managerial ownership and the Audit Committee's impact on firm value were negligible, due to limited managerial stakes and inadequate audit committees. Return On Assets (ROA) did not affect firm value, likely due to significant data variation and decreasing trends. The study suggests that a robust corporate governance structure ensures informed decision-making and minimizes strategic errors. Management should focus on enhancing operational efficiency to boost profitability.

Pengaruh Profitabilitas, Likuiditas, Leverage Terhadap Nilai Perusahaan pada Perusahaan Properti Yang terdaftar Di Bursa Efek Indonesia

This research aims to analyze the influence of profitability, liquidity also leverage on company value in property companies listed on the Indonesia Stock Exchange(BEI)for the 2019-2023 period. Profitability is measured using Return on Assets(ROA), Liquidity is measured using Current Ratio(CR), also Leverage is measured using Debt to Equity Ratio(DER), Company value is measured using Price to Book Value(PBV). This research uses quantitative research methods. The population of this research is all property companies registered on the IDX for the 2019-2023 period, namely 18 companies. The sample selection in this study used purposive sampling with certain criteria so that 5 data samples were obtained for research. The data used is secondary data obtained from financial reports on the IDX. The data analysis technique uses multiple linear regression analysis. This research shows that profitability has a positive also significant effect on company value, liquidity has an insignificant negative effect on company value, also leverage has an insignificant positive effect on company value.

The Effect of Net Interest Margin (NIM), Operating Expenses, Operating Income (BOPO), Loan to Deposit Ratio (LDR), on Return on Assets (ROA) at PT Bank Mayapada Internasional Tbk for the Period of 2014-2023

The Effect of Net Interest Margin (NIM), Operating Expenses, Operating Income (BOPO), Loan to Deposit Ratio (LDR), on Return on Assets (ROA) at PT Bank Mayapada Internasional Tbk for the Period of 2014-2023

Determinasi Harga Saham pada Perusahaan Sektor Transportasi dan Logistik yang Terdaftar di Bei Tahun 2021-2023

This study aims to determine the influence of Return on Assets (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER), Current Ratio (CR) and the exchange rate partially towards the stock prices of transportation and logistics sector companies registered in Indonesia Stock Exchange in 2021-2023. This study used quantitative research method. The population in this study was transportation and logistics sector companies registered in Indonesia Stock Exchange (IDX). The sample used was 27 companies using the total sampling method. The analysis tool used is the analysis tool multiple linear regression analysis tested using Statistical Package for the Social Science (SPSS). The results of the research conducted indicated that partially, variables namely ROA, ROE, DER and CR, do not have a significant influence towards the stock prices of transportation companies registered in the IDX in 2021-2023, while the exchange rate variable have a significant influence towards the stock prices of transportation companies registered in the IDX in 2021-2023. It is recommended that the companies can increase its value with effective steps to increase company profits.

Do Enterprise Risk Management and Good Corporate Governance affect the Performance of Insurance Companies in ASEAN-5 Countries?

This study aims to analyze the influence of Enterprise Risk Management (ERM) and Good Corporate Governance (GCG) on the performance and profitability of companies among 30 insurance companies in the ASEAN-5 countries during the period of 2018-2022. The Panel Data Regression method is utilized to analyze data obtained from financial reports and corporate sustainability reports. The results of the analysis indicate that the simultaneous implementation of ERM and GCG does not have a significant positive influence on the financial performance of insurance companies, measured by indicators such as Return on Assets (ROA), Return on Equity (ROE), Loss Ratio, Combine Ratio, and Tobins Q. It is noteworthy that some individual parameters show a positive influence on company performance. This suggests that ERM and GCG play a crucial role in enhancing performance and profitability in the context of insurance companies in the ASEAN region during the research period.

Different lies to different audiences: Tax avoidance versus earnings inflation

Using a proprietary dataset collected by the National Bureau of Statistics of the People's Republic of China (NBS), we are able to compare earnings reported to the NBS in the pre-IPO (initial public offerings) period with earnings for the same firm and the same year reported in firms' IPO prospectus. While Ball and Shivakumar (2008) find that in the U.K., financials reported at IPOs tend to be more conservative than the original reports, we find the opposite: income reported by Chinese firms in their IPO prospectus tend to be higher than those reported to the NBS. In the year immediately preceding the IPO, the discrepancy is mostly driven by firms inflating earnings in the IPO prospectus to increase issue prices. In earlier years, firms in provinces with weak law enforcement report lower earnings to the NBS to avoid taxes, which also contributes to the discrepancy between the IPO and NBS data. These findings suggest that firms tell different lies to different audiences. The discrepancy between the IPO and NBS earnings is positively correlated with the IPO issue price, indicating that firms are able to increase their IPO proceeds by raising earnings in the IPO prospectus from the original NBS reports. Furthermore, firms with the highest discrepancies experience the most significant declines in return on assets (ROA) and the most negative abnormal returns after the IPOs. Our paper complements the existent literature on earnings quality at IPOs, sheds light on firms' tax avoidance behaviors, and is of practical value to regulators.

Perubahan Kombinasi Bisnis Implementasi Dan Dampak PSAK 22 Terhadap Kinerja Keuangan Perusahaan

Using a literature research methodology, this paper investigates how business combination accounting was implemented both before and after PSAK 22, which is now known as PSAK 103 on Business Combinations. This research analyzes profit margin, return on equity (ROE), and return on assets (ROA) to assess the impact of PSAK 22 on the business's financial performance. Prior to PSAK 22, businesses often employed the "purchase method" or "pooling of interest." Results from prior research indicate that ROA, ROE, and profit margins are significantly impacted by business combinations. Although financial performance is frequently improved by mergers and acquisitions, the outcomes differ among industries. This article requires a broader range of information in order to function as a reference for future study on business combinations with PSAK 22/103 case studies and more diverse variables.

Evaluasi Perubahan Segmentasi Kinerja Keuangan PT. KB Bukopin, TBK Sebelum dan Sesudah Akuisisi dengan Metode K-Means Clustering

This study aims to evaluate changes in the segmentation of PT KB Bukopin Tbk's financial performance before and after Kookmin Bank's acquisition. This study uses the K-means clustering method using secondary data in the form of financial data taken from the official website of the Indonesia Stock Exchange, IDX.co.id. The results of the k-means analysis showed that the change in BBKP segmentation from Category 4 (cluster E) in 2019 to Category 3 (cluster C) in 2023 showed significant changes in the company's financial stability and capital adequacy. This research reveals that post-acquisition strategies and policies have successfully made a substantial impact on BBKP's financial structure, as evidenced by a positive increase in the solvency ratio (DER) and capital adequacy ratio (CAR). However, the decline in return on assets (ROA) indicates that operational efficiency is required to improve profitability. The results of the comprehensive and ongoing evaluation show how important it is to thoroughly understand the impact of acquisition activities in the banking industry.

Measuring innovation capability and its effects on financial performance using companies’ annual reports

Companies try to survive and gain competitive advantage by leveraging their innovation capabilities, which need to be more accurately measured through company annual reports to provide valuable insights for investors and stakeholders. The study aims to analyze how innovation capability can be understood using innovative textual analysis based on linguistic cues to assess the level of a company’s innovation capability using secondary data from companies’ annual reports and then validated by empirical tests. The study surveyed 30 companies listed on the Indonesian Stock Exchange from various sectors and industries and applied panel data regression with a five-year time series (2018–2022). Innovation capability was an independent variable, measured by textual analysis approach, and return on assets (ROA) and return on equity (ROE) were dependent variables. Descriptive statistics showed no significant differences in innovation capability, ROA, and ROE across sectors. Correlation analysis revealed no significant association between company age and these variables. Panel data regression confirmed that innovation capability positively influences ROA (p-value 0.078) and ROE (p-value 0.035). Notably, the impact of innovation capability on ROA increased during and after the COVID-19 pandemic, highlighting its growing importance in financial performance during challenging times.

Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

Purpose The purpose of this paper is to investigate the impact of size, asset quality, asset management, financial risk, gross domestic product and inflation rate on the financial performance of companies listed on the Jakarta Islamic Index of 30 industrial firms. Design/methodology/approach Based on the selected criteria, this study analysed an unbalanced panel of data from 30 industrial companies on the Indonesian capital market that are members of the Jakarta Islamic index. Profitability is measured using the dependent variables return on assets (ROA), return on equity (ROE) and stock prices. The influence of explanatory variables of internal factors, namely, size, asset quality, asset management, financial risk, gross domestic product and inflation is investigated using pooled OLS, fixed and random effect estimation. Findings The empirical findings indicate that the scale of a company has a significant impact on its performance, asset quality, asset management and financial risk. GDP has a substantial impact on financial performance, particularly as measured by ROA and ROE. This study’s ramifications have substantial effects on a broad spectrum of stakeholders. The results of this study provide the general public and investors with a greater understanding of the factors that influence a company’s performance on the Jakarta Islamic Index 30. Research limitations/implications The implication of this research is that a deeper comprehension of the factors that influence the financial performance of companies within industrial sectors that follow Islamic finance principles can help design more effective strategies and policies. Practical implications This research has significant practical implications in a number of crucial areas. First, it provides a comprehensive comprehension of the company’s financial performance in the industrial sector in accordance with Islamic finance principles. Second, the research findings provide more precise guidance on how company size, asset quality and macroeconomic variables influence the performance of Indonesia's financial market. Originality/value The study’s authenticity and value hold considerable importance. This study introduces novel perspectives on the assessment of corporate financial performance within industrial sectors through the lens of Islamic finance principles. It offers valuable insights that have not yet been extensively investigated by scholars in the field.

The Combined Effects of Financial and Market Indicators on the Valuation of New Listings: Evidence from the Biopharmaceutical Sector

This study confirms that financial and market data have a significant impact on the valuation of newly listed companies, especially in the biopharmaceutical industry. Using multiple linear regression models, this paper found significant differences in the impact of EBITGR and EBITDAGR on price-to-earnings ratio (P/E Ratio) across years. Other indicators such as Total Asset Turnover, Return on Assets (ROA) and Debt to Equity Ratio (D/E Ratio) have weaker explanatory power and unstable influence. In addition, fluctuations in market valuations of listed companies are influenced by market sentiment and the macroeconomic policy environment. In high-growth, high-risk industries such as biopharmaceuticals, regulatory policies and listing structure reforms in the market can cause structural changes in model performance. At the same time, changes in market sentiment and regulation can also affect the explanatory power of financial indicators to some extent. Further analyses showed that market preferences for valuation changed over time during the study period, especially when the market moved significantly, driven by regulatory policy and the external environment. This makes the conclusions of the study's findings subject to uncertainty in different market environments. Overall, this study reveals a number of key factors affecting the market valuation of newly listed companies and highlights the importance of the interaction between market data and financial indicators. In future research, more attention should be paid to the role of different time periods, market conditions and industry characteristics to avoid potential valuation traps and provide more informative support to market investors and managers.

The Combined Effects of Financial and Market Indicators on the Valuation of New Listings: Evidence from the Biopharmaceutical Sector

This study confirms that financial and market data have a significant impact on the valuation of newly listed companies, especially in the biopharmaceutical industry. Using multiple linear regression models, this paper found significant differences in the impact of EBITGR and EBITDAGR on price-to-earnings ratio (P/E Ratio) across years. Other indicators such as Total Asset Turnover, Return on Assets (ROA) and Debt to Equity Ratio (D/E Ratio) have weaker explanatory power and unstable influence. In addition, fluctuations in market valuations of listed companies are influenced by market sentiment and the macroeconomic policy environment. In high-growth, high-risk industries such as biopharmaceuticals, regulatory policies and listing structure reforms in the market can cause structural changes in model performance. At the same time, changes in market sentiment and regulation can also affect the explanatory power of financial indicators to some extent. Further analyses showed that market preferences for valuation changed over time during the study period, especially when the market moved significantly, driven by regulatory policy and the external environment. This makes the conclusions of the study's findings subject to uncertainty in different market environments. Overall, this study reveals a number of key factors affecting the market valuation of newly listed companies and highlights the importance of the interaction between market data and financial indicators. In future research, more attention should be paid to the role of different time periods, market conditions and industry characteristics to avoid potential valuation traps and provide more informative support to market investors and managers.

Analisis Faktor-Faktor yang Mempengaruhi Kinerja Keuangan Sektor Perbankan di Bursa Efek Indonesia

The purpose of this study is to determine the partial to simultaneous influence of Capital, Asset, Management, Earnings, Liquidity variables as well as sensitivity to market risk on Return on Assets (ROA). This research was conducted on Banking Sector companies listed on the Indonesia Stock Exchange. The research approach uses quantitative research. The total population in this study is 46 banking companies that have entered and listed stocks during the observation period of 2018-2022, which is 5 years. The company met the sample withdrawal criteria, namely the entire population of 40 companies, so the sample in this study was 40 x 5 = 200 financial statements. The analysis tool in this study is Eviews version 13. The data analysis technique uses panel data regression analysis. The results of his research show that partially CAR has a significant positive effect on ROA. NPLs have no positive and insignificant effect on ROA. LDR has a significant positive effect on ROA. BOPO has a significant positive effect on ROA. PDN had a significant positive effect on ROA and NPM had no positive and insignificant effect on ROA. Meanwhile, simultaneously the variables CAR, NPL, LDR, BOPO, PDN and NPM simultaneously had a significant positive influence on ROA. The contribution of all variables was 53.30%.