Total Asset Size Research Articles

The Worldwide Financial Crisis: An Analysis of Financial Performance from the Banking Sector of Pakistan

The global financial crisis (GFC) of 2007-2008, which started in the USA and quickly spread worldwide, caused major disruptions in many countries' economies. This study focuses on evaluating the financial performance of Pakistan's banking sector before and after the crisis, spanning from 2004 to 2013. Both Islamic banks (IBs) and conventional banks (CBs) were analyzed, looking at variables like return on assets, investments, solvency, liquidity, deposits, asset quality, advances, and total asset size. A stepwise panel regression model was used for the analysis. The results show that asset quality and advances had a positive effect on return on assets, while solvency, liquidity, investments, deposits, and total asset size had a negative impact. Comparisons between the pre-crisis (2004-2008) and post-crisis (2009-2013) periods suggest that the global financial crisis had an insignificant effect on the financial operations of Pakistan's banking sector.

Study on the Application of Internal Control in the Management of Urban Commercial Banks

In February 2021, Baoshang Bank, whose total asset size had exceeded 500 billion, exited the stage of history with more than 200 billion in unpayable debts. Now look back on its life, from the clouds fell to the bottom. However, there are traces of its causes. Weak supervision of funds, the organizational structure of the organization is a sham, excessive concentration of equity internal governance failure eventually became the key to its demise. Therefore, this paper will take the current situation of rising non‐ performing loan rate of urban commercial banks as the entry point to discuss the importance of internal governance and make suggestions for the establishment of a sound internal control system in urban commercial banks.

Examining the Effect of Cash Conversion Cycle on Profitability in PERTAMINA Balikpapan Hospital: Moderating Role of Total Assets

This study analyzes the effect of company size and cash conversion cycle on profitability with firm size as a moderating variable. The cash conversion cycle is the independent variable with company size using total assets as a moderating variable, while the dependent variable is profitability using the net profit margin ratio. The data were obtained from company financial reports taken from interim reports for 2013 - 2022. The sample was determined using purposive sampling, and a sample of 120 was obtained. The analytical method used in this research was panel data regression with the previous moderate regression analysis. Has passed the classical assumption test the hypothesis proposed in this research is that the cash conversion cycle influences profitability by using firm size as a moderating variable. The research results show that net profit margin with company size as a moderating variable has a significant effect. In addition, it was found that ln total assets moderated this relationship. Companies with a larger total asset size show that cash relationship conversion cycles are more significant to profitability than companies with smaller total assets.

Measuring Financial Performance of Non-Banking Financial Companies (NBFCs): Evidence from Select BSE-Listed NBFCs In India

The present study examines the effects of reserves on the proportion of loans disbursed, cost incurred in ratio to income, total assets and total equity on the financial performance, that is, profitability of Indian Non-Banking Financial Companies (NBFCs). The study applies Fixed Effects Panel Regression model to BSE-listed, eleven NBFCs selected on basis of market capitalisation for the period from financial year 2001 to 2023. It was found that excess of reserves in proportion to loans disbursed significantly and negatively affected profitability. In order to maintain liquidity for liability obligations, Indian NBFCs cut short on credit disbursals, which affected profit, as interest income is the main source of revenue for Indian NBFCs. Another important finding in the case of Indian NBFCs was that with an increase in the size of total assets, profitability was negatively affected. It implies that the loans disbursed or investments that were being made by Indian NBFCs were either of poor asset quality or had low-income or profit-generating capacity. The Indian NBFCs invested in or disbursed loans mainly to the risky and unbanked housing and infrastructure sectors and non-creditworthy retail customers, which adversely affected their profitability.

The Impact of Company Size Indicators on the Audit Fee

Audit fees are among some of the most important concerns of audit firms, financial/statutory audit regulators and academia. The objective of this paper is to analyze and evaluate the impact of company size indicators on the formation of audit fees. Based on the data available in the “Audit Analytics” database, a sample of 27 companies listed on the Bucharest Stock Exchange was selected, for which 524 observations were reported, representing the indicators “Audit Fee”, “Total Assets” and “Turnover” during 2017-2021. From the research carried out, it emerged that the turnover and total assets size indicators have a significant and positive influence on the financial audit fee. In addition, the findings indicate that “the market capitalization” indicator is not a predictive and causal variable of the value of the financial audit service.

Capital Structure Theory in the Transport Sector: Evidence from Visegrad Group

Capital structure plays an important role in corporate finance, especially in the period of restrictive monetary policy in many developed countries. This paper aims to estimate the debt ratio based on five selected financial indicators: tangibility, return on assets, size of total assets, current ratio, and size of total sales using multiple linear regression for four countries, such as the Czech Republic, Hungary, Poland, and Slovakia, as well as the V4 region. The total sample consists of 3828 small- and medium-sized enterprises from the transport sector in the Central European area. These data are drawn from Amadeus by Bureau van Dijk from 2019. The results show that three of the five variables are statistically significant in all models. These findings indicate that transport companies prefer the pecking order theory. We find that the increase in tangibility, return on assets, as well as current ratio, reduce the debt ratio. The outputs provide new theoretical and empirical knowledge regarding transport companies in V4.

Factors affecting the business efficiency of listed joint stock commercial banks in Vietnam

This research is conducted to measure factors affecting the business efficiency of listed joint stock commercial banks. The balanced data was collected from 253 financial statements of 23 listed joint stock commercial banks for the period 2010 – 2020. By analyzing panel data with the fixed effects model (FEM) and random effects model (REM), the research results show that the size of total assets, market share, cost-to-revenue ratio, the ratio of equity to total assets, the ratio of bad debts to outstanding loans, provision expenses for credit risks on outstanding loans, marginal income, and the ratio of non-interest income to interest income affect are statistically significant on the business efficiency of commercial banks listed on Vietnam’s stock market. Although the outstanding loans–to-deposit ratio has a negative effect on ROA and the credit growth rate has a positive influence on ROA, the influence of these two variables is not statistically significant. The independent variables explain the dependent variable ROA by 71.64% and the dependent variable Tobin’s Q by 28.17%. Recommendations are then proposed to improve the efficiency of listed joint stock commercial banks; in particular, including: increasing assets through an increase in capital for development investment, especially in the period after the epidemic has been under control; increasing and developing reasonable mobilization and lending; saving operating costs and strictly controlling not only the provision for general risks but also the provision for specific risks; concerning increasing non-interest income through improving the quality of commercial bank services. The research also shows the limits of the study, which has not yet assessed the business efficiency by using non-financial criteria such as customer satisfaction or banks’ branding. On the other hand, for banks, the financial cycle is very large and depends closely on State Bank’s regulations, but this study has not yet mentioned it.

Application of the Beneish Model on the Warsaw Stock Exchange

This paper investigates irregularities in financial statements by applying the Beneish and Roxas models to Polish firms listed on the Warsaw Stock Exchange from 2015 to 2020. The total sample included 110 observations. The sample comprised companies that had received an adverse or disclaimer opinion by the auditors, but had not been fined by the Polish Financial Supervision Authority (KNF Board). The control firms were selected based on the industry as selected by the standard industrial classification code and on the financial year, with minimizing the difference in the size of total assets. The results indicate that the Roxas model revealed greater accuracy than the Beneish model on the tested sample. The use of logistic regression allowed a modification of the Beneish model to align it with the conditions of the Polish market. The modified Beneish model showed greater accuracy for the tested sample and companies fined by the KNF Board.

Pengaruh Total Aset dan DPK Terhadap Pembiayaan Bank Mega Syariah Periode Tahun 2017-2021

Total assets, Third Party Funds (TPF) and Financing are indicators of bank size, where the size of total assets and third party funds will affect the distribution of funds to the public. This study uses descriptive quantitative research methods using secondary data taken from the Monthly Financial Statements at Bank Mega Syariah Period 2017-2021 which have been audited and published in general. This study aims to determine and analyze the effect of Total Assets and Third Party Funds on financing in Bank Mega Syariah in 2017-2021. The analysis used in this study is classical assumptions and hypothesis testing with linear regression analysis. Total assets as a variable (X1), Third Party Funds as a variable (X2) and financing as a variable (Y). The results of this analysis use a significant level of = 0.05. Based on the T-test, the significant value on total assets is 0.000 0.05, which means that TPF has no significant effect on financing. Meanwhile, the F-test analysis shows that the significant value is 0.000

Central bank communication, shadow banking, and bank risk-taking: Theoretical model and PVAR empirical evidence.

The rapid development of Chinese shadow banking, which relies on the banking system, significantly impacts nonneutral bank risk-taking. Central bank communication also plays a vital role in risk prevention and mitigation in the banking system in a modern central banking system. To address the issues of central bank communication, shadow banking, and bank risk-taking, we construct a new theoretical model that includes shadow banking based on the M-S model. Based on the central bank written communication index measured by the Monetary Policy Implementation Report 2009–2019 and balanced panel data of 35 listed banks, we design an empirical PVAR model. This study finds that central bank communication regarding domestic easing economy and policy positively affects bank risk-taking, while central bank communication and mechanism exists in China. Moreover, the growth rate of shadow banking size also positively encourages bank risk-taking. Furthermore, central bank communication regarding foreign policy is negatively related to bank risk-taking in the robustness test, supporting the above findings. The analysis of equity heterogeneity shows that the positive effect of central bank communication on bank risk-taking in shadow banking is more pronounced in small and medium-sized shareholdings. Further analyzing the economic consequences of central bank communication and shadow banking on bank risk-taking, we find that banks’ risk-taking positively affects their share of noninterest income and total asset size.

The Effect of Liquidity on Stock Price Volatility: Empirical Study on Listed Commercial Banks on Vietnamese Stock Exchange

The article studies the impact of bank liquidity and bank stock liquidity on the stock price volatility of 17 The article studies the impact of bank liquidity and bank stock liquidity on the stock price volatility of 17 commercial banks listed on the Vietnamese Stock Exchange. The study uses the Random Effect Model with unbalanced table data and quarterly frequency from the first quarter of 2006 to the fourth quarter of 2020. The results show that the financial gap (FGAP) has a positive impact on the stock price volatility of banks, meaning the higher the financial gaps, the lower the bank liquidity, and the larger the stock price volatility of banks. In addition, the study also shows that the size of total assets and the change of exchange rate for the two factors have opposite effects on changes in the share prices of banks. The study has not yet found any evidence to conclude that stock liquidity has an impact on the stock price volatility of the commercial banks listed on the Vietnamese Stock Exchange.

The Effect of Liquidity on Stock Price Volatility: Empirical Study on Listed Commercial Banks on Vietnamese Stock Exchange

The article studies the impact of bank liquidity and bank stock liquidity on the stock price volatility of 17 The article studies the impact of bank liquidity and bank stock liquidity on the stock price volatility of 17 commercial banks listed on the Vietnamese Stock Exchange. The study uses the Random Effect Model with unbalanced table data and quarterly frequency from the first quarter of 2006 to the fourth quarter of 2020. The results show that the financial gap (FGAP) has a positive impact on the stock price volatility of banks, meaning the higher the financial gaps, the lower the bank liquidity, and the larger the stock price volatility of banks. In addition, the study also shows that the size of total assets and the change of exchange rate for the two factors have opposite effects on changes in the share prices of banks. The study has not yet found any evidence to conclude that stock liquidity has an impact on the stock price volatility of the commercial banks listed on the Vietnamese Stock Exchange.

The gap between credit rating theory and practice: evidence from bond issuers in China

As a significant part of the bond market, credit rating means a lot to investors and issuers. Few studies compare the differences between the existing rating methods and the actual credit performance (default/non-default) based on the underdeveloped bond market, which fails to guide the application of credit rating methods in the real market. The problem of the low rating quality of China’s rating agencies has been failing to meet the challenge. The reference function of rating for credit risk prevention and bond pricing has been weakened or even invalid. From a quantitative perspective, this paper focuses on the validity of rating results and the shortcomings of the mainstream rating framework. The results show that the current methods pay too much attention to total assets size but ignore the debt burden and profitability of enterprises, which is different from the actual default impact factor. This finding supports the macroeconomic policy of urging the establishment of a rating quality verification mechanism with default rate as the core, meaning it is conducive to constructing a healthy credit market.

Predicting financial distress in the Indian textile sector

The purpose of this paper is to predict the financial distress of companies of the Indian textile sector using Altman Z score. The analysis conducted on 161 listed textile companies in India for a period of 10 years from 2009 to 2018. All the listed companies are categorized into large, medium, and small using the median split method based on the size of total assets. Kruskal Wallis test is applied to test whether the mean z-score is different for each category of companies. This research study shows that majority of the companies in the Indian textile sector are facing financial distress. Further, it shows that the z score of small, medium, and large-scale textile companies in India is significantly different.

Funding the present and the future: Drivers of NPO's financial sustainability

AbstractDespite the prominence of financial sustainability as a critical aspect of nonprofit organizations' self‐sustainability being widely recognized, the literature on the drivers of nonprofit financial sustainability is quite limited, particularly for quantitative empirical studies. To address the research gap, we first quantify nonprofit financial sustainability in a real sense, with financial indicators measured by the nexus of long‐term and short‐term, and then systematically examine to what extent the nature, nurture and environmental drivers help to explain financial sustainability. To be specific, by using national data compiled from the Research Infrastructure of Chinese Foundation during 2014 to 2016 and using Random Effect Logit Model, this study finds that foundations registered at the provincial level, being private ones, possessing larger size of total assets with diversified revenue sources, spending more on administration, and located in the more affluent areas are more likely to shape short‐term resilience to the unexpected economic shocks and meanwhile achieve long‐term success in maintaining or expanding services. This study contributes to a better understanding of nonprofit organizations' financial performance, which is beneficial for practitioners to adopt appropriate managerial practices and organizational strategies.

Jump volatility spillover network based measurement of systemic importance of Chinese financial institutions

AbstractThe identification of systemically important financial institutions (SIFIs) is an important measure to deal with systemic risks. To achieve this goal, we first use generalized variance decomposition method and granger causality test to construct jump volatility spillover networks of Chinese financial institutions based on the 5‐min high‐frequency data. Then, out‐strength and in‐strength are adopted to analyze the SIFI. Finally, we use panel data regression model to investigate the determinant of the SIFIs. The empirical results show that: (a) The network density reaches a peak when the financial system under pressure during the China's stock market disaster of 2015. (b) Large banks and insurances usually display systemic importance, while some small financial institutions are also SIFIs due to their high value of out‐strength and in‐strength. (c) There are obvious differences in the factors that affect the out‐strength and in‐strength based on panel data regression model, but turnover rate, jump volatility, firm size and growth rate of total assets are the common driving factors.

Profitability Condition With Stylized Fact of Banking Industries in Indonesia, Malaysia and Thailand

<p><em>The survival of banking industries are determined by many factor including profitability earn during the years. Therefore, this study investigates factors affecting profitability of banks in ASEAN. This study uses 10 banks with the largest assets in Indonesia, Malaysia and Thailand with sample studies of 30 banks in ASEAN with 10 years of operationalization duration. Return on assets (ROA) is the dependent variable and the independent variables used are non-performing loans (NPL), capital adequacy ratios (CAR), total assets (Size), loan-to-deposit ratio (LDR), domestic product growth gross (GDP growth), inflation, interest rates and exchange rates. </em></p><em>Data is processed using panel data regression with the Cochrance Orcutt method on the basis of the Common and Fixed Effect Model with the combination of stylized facts among each countries. The final results of this study are varied among countries. In Indonesia only NPLs have a significant significance of ROA, which is a significant negative. In Malaysia, only the exchange rate is significant to ROA, which is a significant negative. In Thailand, only NPI has a significant effect on ROA, which is a significant negative. Overall in Southeast Asia, only NPLs, interest rates and exchange rates significantly affect ROA, which is a significant negative. In other independent variables, it does not have a significant effect on ROA.</em>

BİLANÇO DIŞI İŞLEMLER İLE KARLILIK VE MAKROEKONOMİK DEĞİŞKENLER ARASINDAKİ İLİŞKİNİN MARS METODU İLE BELİRLENMESİ

The aim of this study is to determine the relationship between banking off-balance sheet transactions and macroeconomic variables. For this purpose, off-balance sheet transactions were used as dependent variables in the study, and total assets, equity size and profitability were determined as on-balance sheet independent variables. The non-parametric Multivariate Adaptive Regression Splines (MARS) method, which assumes the functional relationship between dependent and independent variables, was used as the analysis method in the study. As a result of the study, it is seen that all P probability values of the variables are lower than 0.01 and are significant. It is understood that the whole of the model is significant because the F-statistic value is 88.97833 and its significance is 0.0000. R squared is 87%, indicating that the independent variables have high explanatory power for the dependent variable. There are seven basic functions in the model, and it was observed that the size of equity, total assets, profitability, exchange rate and total required reserves have an effect on off-balance sheet transactions. According to the model, it is seen that the active variable affects the off-balance sheet transactions in all values it receives. Again, when the model is examined closely, it is seen that the equity variable is effective in determining the size of off-balance sheet transactions at values greater than 1,378, the exchange rate variable with values greater than 1256.33, and the total reserve requirement variables greater than 4,69932.

DETERMINANTS OF WORKING CAPITAL “EVIDENCE FROM PRODUCTION AND SERVICE SECTOR OF PAKISTAN”

Purpose: Basic purpose of this study is to explore the factors or determinants of working capital. The effect of this research is threefold as its first aim is to explore the determinants of working capital in the service sector, second is to find the determinant of working capital in the production sector and third is to make a comparison between the findings of both sectors.
 Research Methodology: Quantitative technique of data collection has been used under explanatory research method and working capital has been taken as dependent variable while return on assets, return on equity, leverage, sales growth, firm size of total assets and firm size of total sales have been taken as independent variables from production and services sector of Pakistan. A sample of 34 companies listed at KSE for 5 years (2007-2011) has been selected with a total observation of 170. Datawerecollectedfrombalancesheetsofthese companies fromofficialsiteofStateBankof Pakistan.
 Findings: The finding of this research shows that the same selected variables are not a significant predictor of working capital in both sectors. In the service sector, all selected variables are significant predictor or working capital except for short term debt to total assets variable. However, in the production sector, only sales growth and return on assets is a significant predictor of working capital requirement.
 Unique contribution to theory, practice and policy: In a developing country like in Pakistan, very little work has been done on working capital determinants. In developed countries and other developing countries, enough work has been done in that area, however, not previously study covers the comparison of the diverse sectors to determine working capital. This study will add a new dimension to the existing literature and cover the gaps in existing literature byaddingthe comparisonofdiverse nature sectors into the existing literature.

The Mediating Role of NIM on Market Structure and Bank Performance: Empirical Confirmation from Listed Nepalese CBs

This study examined the mediating role of net interest margin (NIM) on the nexus between market structure and banks’ performance. Two ordinary least-squares models with a path analysis model were applied to analyze the data. The first regression model measured the indirect effects of market structure, total assets, geographic expansion, and specialization on ROA through NIM and revealed that the higher market share of loans positively effects on bank’s performance and statistically insignificant. Similarly, the geographic expansion was observed to hurt the bank’s ROA, but statistically insignificant. On the other hand, the indirect effect of total asset size and specialization was negative, but the first one was statistically significant, and the second was statistically insignificant. The result of the second regression model measured the direct effect of antecedent variables on the ROA and revealed that the market structure, geographic expansion, and specialization were negatively related to performance measure ROA. However, the direct effect of total assets size was positively related to ROA and statistically significant. The results of the two regression models based on total effects revealed that a higher bank size appeared favorable to Nepalese CBs and was found to have positive effects on ROA but the geographic expansion was a negative effect on ROA, and statistically significant. The results of the study might be helpful to Nepalese bankers, regularity authorities, and other concerned stakeholders to take an effective decision about the direct, indirect, and total effects of chosen antecedent variables on consequent variables through the mediating role of NIM.