Strong Financial Performance Research Articles

Economic Value Added (EVA) sebagai Alternatif untuk Menilai Kinerja Keuangan Perusahaan PT. Indofood Sukses Makmur Tbk Periode 2019-2023

The aim of this research is to evaluate the financial performance of PT. Indofood Sukses Makmur Tbk uses the concept of economic value added (EVA). The type of descriptive research and quantitative approach used in this research and PT's annual financial reports. Indofood Sukses Makmur Tbk as a secondary data source. The results of this research found that PT. Indofood Sukses Makmur Tbk during the observation period had quite strong financial performance, this is indicated by the EVA value > 0; meaning PT. Indofood Sukses Makmur Tbk is able to generate added economic value during the 2019-2023 period.

Determinant state earnings qualities better than Private Pharmaceutical Companies

Purpose: Comparative Earning Quality of State and privately pharmaceutical companies listed on Indonesian Stock Exchange (BEI) between 2019-2023 period with liquidity, profitability, solvency and efficiency ratio. Methodology/approach: After collecting the necessary data, appropriate financial ratios and descriptive statistical techniques are used to analyze, interpret and provide a brief overview of the data collected. the comparison involves two state-owned and two privately-owned pharmaceutical discretionary accruals and earnings persistence for earnings quality, and net profit margin, current ratio, debt-to-equity ratio, and total asset turnover for financial performance measurements. Findings: net profit margin, current ratio, debt to equity ratio, dan total asset turnover have significant differences in the variables private are superior to those of state pharmaceutical companies. This recommends the importance of improving earnings quality of State pharmaceutical companies Practical implications: these companies should refrain from earnings manipulation to foster strong and high-quality financial performance, particularly within Indonesia's pharmaceutical sector. Originality/value: This comparison aims to contribute to financial management research by providing insights into the performance of different types of pharmaceutical companies based on earnings quality and financial statement ratios, thus offering academic contributions to the field.

A HOLISTIC APPROACH TO THE BANKING SECTOR: PERFORMANCE AND EFFICIENCY ANALYSIS OF TURKISH BANKS USING CoCoSo AND DEA METHODS

The banking sector is a vital component of global economies, playing a critical role in ensuring financial stability by gathering savings, providing credit, and facilitating various financial transactions. Banks not only support economic growth but also act as intermediaries between surplus and deficit units within the economy. Therefore, evaluating their financial performance and efficiency is crucial for understanding the overall health of the financial system. This study analyzes the financial performance and efficiency of the top 10 banks in Turkey, which are ranked by asset size, over a 10-year period from 2013 to 2022. Using the Combined Compromise Solution (CoCoSo) method, the study ranks these banks based on various financial criteria, such as capital adequacy, asset quality, liquidity, and profitability. CoCoSo is a multi-criteria decision-making method that allows for comprehensive performance analysis by considering multiple factors simultaneously. In addition to CoCoSo, Data Envelopment Analysis (DEA) is used to evaluate the efficiency of these banks in utilizing their resources to generate financial outputs. The study’s findings reveal that privatelyowned banks, particularly Akbank T.A.Ş., consistently rank at the top in terms of both financial performance and efficiency. Akbank’s strong performance is attributed to its effective resource utilization and strategic management decisions. State-owned banks, on the other hand, generally show lower financial performance, even though they exhibit high efficiency levels. This discrepancy suggests that public banks may be focusing on non-profit-driven projects that contribute to public welfare, which in turn affects their overall financial performance. Foreign-owned banks, such as Garanti Bankası and Denizbank, also demonstrate strong financial performance but show varying degrees of efficiency, with Denizbank being relatively less efficient in resource utilization. By employing both the CoCoSo and DEA methods, this study offers a unique dual-method approach that provides a comprehensive evaluation of the Turkish banking sector. The combination of these two methods allows for a more nuanced understanding of both financial performance and efficiency, offering valuable insights for policymakers, bank management, and researchers. The study not only highlights the strengths and weaknesses of individual banks but also underscores the importance of efficient resource management for sustaining competitive advantage in a highly dynamic banking environment. The results of this study can serve as a robust framework for future research on bank performance evaluation, especially in emerging markets. Moreover, the study’s methodology can be applied to other sectors or countries to provide cross-sectional and time-series analysis, contributing to the broader literature on financial performance and efficiency.

FINANCIAL RATIOS AFFECTING FIRM VALUE AND CORPORATE GOVERNANCE AS MODERATING VARIABLE

The goal of this research is to gather the empirical data regarding the influence of financial performance, leverage, board of commissioner, sales growth, firm size, liquidity, and dividend policy on firm value. Moreover, corporate governance moderates the impact of financial performance on firm value. The non-financial company used in this research is the consumer cyclicals and non-cyclicals companies with total 43 companies listed on the Indonesia Stock Exchange from 2020 to 2022. The hypothesis testing method used is multiple regression method that resulting financial performance, board of commissioner, sales growth, firm size, and liquidity impact the value of a firm. Strong financial performance will attract investors to invest in company, which will grow stock price. Independent commissioner monitors company’s financial statement that is align with company’s real condition, so it increases investor’s trust as well as firm value. Higher sales growth, the lower firm value due to higher tax expense and production cost. Higher total asset causes lack of efficiency in supervising operational activities and strategies by management. Greater current assets, reflect higher current ratio, have lower return than fixed assets. Therefore, the firm value will decrease. Corporate governance negatively moderates the influence of financial performance on firm value. In decision-making, investors consider high managerial ownership due to opportunistic management’s propensity. Meanwhile, leverage and dividend policy have no impact on firm value.

Can solar water kiosks generate sustainable revenue streams for rural water services?

Providing a sustainable supply of safe drinking water in rural Africa depends on sufficient revenue from user payments to maintain services. While handpumps have been the primary source of drinking water for rural Africans for decades, local revenue generation has been unstable, contributing to service disruptions and welfare losses. We examine the effect of upgrading manual handpumps to solar kiosks in rural Mali from 2019 to 2023. We model 452 monthly records of observed payments and metered water usage to estimate changes in volumetric use and revenue generation. Average revenues increase four-fold indicating stronger financial performance with solar kiosks. In contrast, we find no significant increase in the volume of water people use when a handpump is upgraded to a solar kiosk. We estimate that a 1 °C temperature increase is associated with a $9 increase in average monthly revenue and 366 more litres of water used every day per waterpoint. Our study suggests that rural Malians are more inclined to pay for water from professionally managed solar kiosks. However, seasonal volatility in water demand and uncertainty in the long-term revenue effect suggests caution in assuming solar kiosks are a definitive solution to the nuanced and dynamic nature of water user behaviours in rural Africa.

Comparative Analysis of ESG and Financial Performance Across Technology, Healthcare, and Consumer Goods Industries: A Study of Dominant Companies

This study delves into the comparative analysis of Environmental, Social, and Governance (ESG) factors and financial performance across three distinct industries: Technology, Healthcare, and Consumer Goods. The research aims to understand the relationship between ESG integration and financial outcomes, examining dominant companies within each sector. In the technology sector, Apple Inc. exemplifies robust ESG practices, including renewable energy projects and sustainable material sourcing, which correlate with strong financial performance metrics. Johnson & Johnson, representing the healthcare industry, demonstrates significant progress in healthcare access and environmental sustainability, reflecting positively on financial indicators. Procter & Gamble (P&G) in the consumer goods sector exhibits notable efforts in waste reduction and sustainable sourcing, contributing to market leadership and financial stability. While ESG integration appears to positively influence financial performance across these industries, the extent of alignment varies, suggesting the need for further research and sector-specific strategies. The findings underscore the importance of transparent ESG reporting and tailored strategies to drive long-term value creation and resilience in today's evolving business landscape.

Research on Relationship Between Governance Structure and Corporate Performance of Chinese Technology Companies

In the post-pandemic age of 2023, the economy is in recovery. Despite the distinctive qualities of technology firms, such as quick development and high levels of innovation, they face problems such as economic downturns and funding issues. As a result, the corporate governance structure is critical to guaranteeing the firms' long-term viability. The purpose of this article is to examine 252 publicly traded technology companies and investigate the link between corporate financial performance and corporate governance arrangements. This article used Ordinary Least Squares (OLS) analysis to look at the link between board independence, Chief Executive Officer (CEO) duality, ownership concentration, and return on equity (ROE). The regression findings indicate a negative association between ROE and the proportion of independent directors. However, there is no substantial association between the duality of ROE and the CEO, and ROE has a U-shaped relationship with ownership concentration. The study's findings imply that corporate executives and regulators should adopt an effective monitoring mechanism to ensure the impartiality and reliability of independent directors' oversight. To ensure strong financial performance, organizations should maintain appropriate levels of independent director percentages and stock concentration.

Corporate Environmental, Social, and Governance (ESG) Performance and the Internal Control Environment

SYNOPSIS We consider how corporate environmental, social, and governance (ESG) performance relates to the strength of the internal control environment. The transparent reporting hypothesis predicts that high ESG performance signals ethical decision making and/or strong financial performance, both of which manifest in a stronger internal control environment and, therefore, fewer material weaknesses in internal controls. We find that ESG performance is negatively related to the likelihood of general internal control weaknesses, consistent with transparent reporting. We also find that ESG performance is negatively related to company-level internal control weaknesses, which are considered relatively severe. Further, we find that ESG performance is negatively associated with specific internal control weaknesses that indicate a lack of ethical tone at the top. We find support for both ethical and performance explanations behind the transparent reporting hypothesis. Overall, our results suggest that ESG performance is positively associated with the strength of the internal control environment. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M14; M40; M42.

Comparative Analysis Of Financial Performance Of Conventional Banking In Asean

ASEAN is a combination of 10 countries in Southeast Asia. Each ASEAN member country has a different banking system, but all are dominated by conventional banks which have an important role in the region's economic growth. This research aims to identify the influence of the NPL, CAR, and BOPO variables partially and simultaneously on ROA on the financial performance of conventional banking in ASEAN. Apart from that, this research also aims to compare differences in regulatory structures to identify the strengths and weaknesses of banks that show strong financial performance in facing challenges and to assist in evaluating systematic risks that may arise from the banking sector in ASEAN countries. The method used in the research is a quantitative method with a comparative or comparing approach, and the data was analyzed through a panel test using Eviews 12 software. The results of the hypothesis test showed that simultaneously, the three variables (NPL, CAR, and BOPO) significantly influence banking profitability in ASEAN (Indonesia, Malaysia, Singapore, and Vietnam).

Analisis Hubungan antara Kinerja Keuangan, Ukuran Perusahaan, dan Kebijakan Dividen dalam Mengoptimalkan Harga Saham

In the dynamic world of capital markets, companies do not only focus on their financial performance. Company size and dividend policy are also critical elements in shaping investor perceptions and driving share prices. This research has the main objective of investigating and analyzing how financial performance, company size, and dividend policy can jointly contribute to the optimization of a company's share price. This research uses a statistical analysis approach by collecting and analyzing financial data and company shares. The method used is a quantitative descriptive method. The total research population was 88 companies, while the total research sample was 20 companies. This approach allows research to identify and quantify the statistical significance of each observed relationship. The research results show that strong financial performance, optimal company size, and appropriate dividend policy have a positive impact on increasing company share prices. This means that companies that succeed in managing these factors well tend to have better stock performance in the capital market.

ANALYSIS OF MAGIC FORMULA FOR INVESTMENT RETURN IN INDIAN STOCK

Magic Formula Investing, popularized by Joel Greenblatt, is a strategy that focuses on selecting stocks based on two main criteria: high earnings yield and high return on capital. Earnings yield is the ratio of a company's earnings per share to its stock price, indicating how much profit a company is generating relative to its price. Return on capital, on the other hand, measures how efficiently a company is using its capital to generate profits. The goal of this strategy is to identify undervalued companies that exhibit strong financial performance. By targeting stocks with high earnings yield and return on capital, investors aim to uncover hidden gems in the stock market that may be overlooked by others. This methodical approach to value investing has garnered attention for its relative simplicity and effectiveness in outperforming the market. One of the key advantages of the Magic Formula is its straightforward nature, which makes it accessible to a wide range of investors. Unlike more complex investment strategies that require in-depth financial analysis, the Magic Formula provides a clear and systematic way to identify potential investment opportunities. Overall, Magic Formula Investing offers investors a disciplined and rules-based approach to stock selection, with the aim of achieving superior returns compared to the broader market. While past performance is not indicative of future results, the Magic Formula's track record

Analyzing Trends in Key Financial Indicators: A Case Study on ORION Pharma Limited

This descriptive research study aims to examine the performance trends of ORION Pharma Limited within the context of its operations in Bangladesh. The study is based on secondary data extracted from annual reports spanning from FY 2018-19 to 2022-23 of the chosen company. It employs trend percentage analysis on key financial metrics derived from these reports. Firstly, the analysis focuses on fluctuations in key financial indicators of the statement of profit or loss, such as net sales revenue, gross profit, operating profit, pre-tax profit, and post-tax profit. Despite facing challenges, the company has shown resilience and adaptability, showcasing noticeable recoveries and improvements during different periods. These changes reflect ORION Pharma's responsiveness to market conditions and efforts to manage expenses efficiently. The analysis suggests opportunities for strategic expansions and profit enhancements despite occasional setbacks. Secondly, examining the trend percentage of key metrics of the statement of financial position for ORION Pharma, the study shows consistent growth in total assets, driven by expansions in both current and non-current assets. Though liabilities increased notably, total equity showed positive growth, indicating effective management and sustained profitability. In summary, ORION Pharma demonstrates strong financial performance and strategic planning, positioning it for continued growth and profitability.

COVID-19-related announcements in a continuous disclosure environment: drivers and stock market implications

PurposeThe purpose of this research note is to investigate the drivers and market reaction to firms’ decision to release general COVID-19-related announcements and to withdraw earnings forecasts and dividends during the COVID-19 pandemic in the continuous disclosure environment of Australia.Design/methodology/approachThe authors first tracked the market reaction of all firms in the Australian Securities Exchange All Ordinaries, Top 300, Top 200 and Top 100 indices during the early period of the COVID-19 pandemic between 1 January and 21 September 2020. The authors then focus the investigation on the incidence of firms deciding to withdraw earnings forecasts and dividends and how the market responded to these incidences during that period.FindingsThe market reacted negatively during the March/April 2020 period but then bounced back to the pre-March 2020 level. The market reaction is mainly driven by three industries, including consumer discretionary, health care and utilities. Firms in industry sectors such as consumer discretionary, materials, health care and information technology contribute to the highest percentage of COVID-19 announcements. It is interesting to document that firms issuing COVID-19 announcements and withdrawing earnings forecasts and dividends tend to be larger firms with stronger financial performance and higher financial leverage. Regarding the stock market reaction, while the market generally reacted positively to COVID-19-related announcements, the decision to withdraw earnings forecasts and dividends is significantly regarded as bad news.Originality/valueThe COVID-19 pandemic has provided a unique natural event to examine firms’ disclosure behaviour in the continuous disclosure environment of Australia during this period of extreme uncertainty. The incidences of earnings forecasts and dividend withdrawals are mainly driven by larger, better performing and higher leverage firms in the consumer discretionary, health care, materials and information technology industry sectors. The market generally reacted favourably to COVID-19-related announcements, despite a significant stock price drop during the March/April 2020 period. The findings provide important regulatory and practical implications.

An Empirical Investigation into Financial Distress in the FMCG Sector in India: A Comparative Analysis Using Altman Z-Score and Descriptive Statistics

India's Fast Moving Consumer Goods (FMCG) industry is essential to the country's economic development because it generates a large number of jobs, consumer spending, and generic growth in industrial production. This study leverages the renowned Altman Z-Score model, in conjunction with descriptive statistics, to assess the financial distress of the top five FMCG firms in India. The results from the study clearly show that all the top five companies in the FMCG sector were in the safe zone or in a too healthy zone. The minimum Z-score value among the selected top five companies was 3.36, which shows the strong financial performance of the FMCG sector. The Z-score value of ITC is significant, as the value surges from 4.35 in 2014 to 6.04 in 2023 with steady growth. It implies a healthy financial environment in ITC. In contrast, the Z-score value of Britannia had significantly dropped from the values of 6.1 in 2017 to 3.77 in 2023. Between 2020-2021, almost all the companies saw a sharp downtrend in the Z-score values, which was resulted from the impact of the Covid-19 pandemic (Prasad, V, 2022). It reflects the global economic slowdown due to the Covid-19 pandemic, which also hit the FMCG sector. Britannia and ITC experienced high volatility in the Z-score values for the time period of the last ten years. The highest range was observed in ITC (2.38), followed by Britannia (2.37). The lowest range was observed in Nestle India (0.70). The financial performance of the top five companies in the FMCG sector is in a good position. It clearly shows that there is huge potential for the growth of the FMCG sector and that it will further increase the valuation of companies in the FMCG sector and benefit the shareholders, promoters, and investors.

The influence of leadership and financial performance on business sustainability in microfinance institutions

Microfinance institutions (MFIs) play a pivotal role in empowering marginalized communities by providing them with crucial financial services. The sustainability of these institutions is essential to ensure a sustained positive impact on the lives of the underserved. To explore the factors influencing MFI sustainability, this study conducts a systematic literature review of relevant articles published between 2015 and 2023, focusing on the roles of leadership and financial performance. The findings of the study reveal a compelling positive correlation between effective leadership and financial performance with MFI sustainability. A strong and visionary leadership within MFIs is found to foster a robust organizational culture, articulate a clear vision, motivate employees, and effectively manage risks. These leadership qualities, in turn, contribute significantly to improved financial outcomes for the institution. Conversely, the study highlights the integral role of strong financial performance in ensuring MFI sustainability. A well-performing financial structure not only instills trust among customers but also facilitates business growth and secures vital profits. These financial strengths are crucial pillars that fortify the overall sustainability of MFIs, enabling them to continue their mission of empowering marginalized communities. In conclusion, this study underscores the critical interplay between leadership and financial performance in driving MFI sustainability. The recommendations derived from the findings emphasize the importance of investing in leadership development within MFIs and implementing robust financial practices.

Corporate Social Responsibility Disclosure and Firm Financial Performance

This study examines corporate social responsibility disclosure and firm financial performance. The secondary source of data collection was adopted in the study. The purposive sampling technique was used to select a sample size of twelve (12) listed deposit money banks in Nigeria. Ordinary Least Square regression analysis was used in this study. The findings revealed that employee relation disclosure has no significant effect on the firm performance of listed deposit- taking banks in Nigeria and that local community relation disclosure has a substantial impact on the strong financial performance of listed deposit-taking banks in Nigeria. The study concluded that corporate social responsibility activities have become the optimum solution to integrate moral principles in the banking world, which suggests that it is an increasingly important issue and has seen greater integration in the business world. The study recommended, among others, that more funds should be allocated for social donations and giftings to further drive the relevance and rationale of corporate social responsibility and that while corporate social responsibility is extended to the community at large, employees of banks should not be left behind as deliberate incentives should be provided periodically.

Analysis of the Impact of Sustainable Growth Rate and ESG Risk Score on the Valuation of Listed Companies on Indonesia Stock Exchange

The purpose of this study is to ascertain how the ESG Risk Score (ESG RS) and Sustainable Growth Rate (SGR) affect the value of companies that are listed on the Indonesia Stock Exchange. Through statistical analysis of secondary data of ESG RS and SGR processed from audited financial reports available on the Indonesia Stock Exchange, the study uses a descriptive and verificative methodology. 825 listed companies that are actively trading on the IDX between 2019 and 2022 make up the research's population. As for the sample size, it consists of 32 businesses that were chosen using the purposive sampling technique. This study uses SPSS 26 for data analysis in order to compute the outcomes of the autocorrelation, heteroskedasticity, fixed panel model, and random effect model tests. According to the research investigation, the impact of SGR and ESG RS on firm valuation is not statistically significant. The study's conclusion is that, over the 2019–2022 timeframe, companies listed on the Indonesia Stock Exchange continuously scored higher on the ESG Risk Score when SGR and ESG RS were present, despite a small but beneficial influence. The results show that a company's valuation is positively impacted by strong financial performance, as measured by SGR. However, even if the Sustainability Report discloses that ESG RC is a quality indicator of ESG Risk Management and is used to track the advancement of SDG and ESG programs in the Indonesian capital market, it has not yet significantly impacted the evaluation of corporate valuation. These findings provide insightful information that will help the Financial Services Authority, the Indonesia Stock Exchange, and businesses better understand and assess how these aspects can contribute to and support the development of SDG and ESG in Indonesia.

Analisis kinerja keuangan pada PT. XT

The company's strong financial performance is an attractive feature for investors. This research analyzes the financial performance of the company using ratio analysis and common size analysis. The financial ratios are used to evaluate the company's financial performance, while the common size approach is used to identify the reasons for changes in the profit and loss statement and financial position statement. The language used is clear, objective, and value-neutral, with a formal register and precise word choice. The text adheres to conventional structure and formatting features, with consistent citation and footnote style. The structure is logical and well-organized, with causal connections between statements. The text is free from grammatical errors, spelling mistakes, and punctuation errors. No changes in content have been made. Descriptive qualitative research that uses both quantitative and qualitative data. The research findings indicate good financial performance in terms of liquidity ratios and Gross Profit Margin (GPM), but not for Net Profit Margin (NPM). The solvency ratio is very good. The analysis utilizing the common size approach indicates an increase in the percentage of cash and cash equivalents, inventory, operational expenses, additional capital, and current debt, as well as a decrease in receivables and net profit from 2020-2022.

Pengaruh Good Corporate Governance, Kinerja Keuangan dan Retention Ratio terhadap Harga Saham

Good Corporate Governance (GCG), Financial Performance, and Retention Ratio are essential factors that can influence stock prices. Good GCG can enhance investor confidence and drive positive financial performance. Strong financial performance can increase the company's value and attract investors to buy the company's shares. A high Retention Ratio indicates that the company can retain quality employees, which can enhance productivity and profitability. This research aims to analyze the influence of GCG, Financial Performance, and Retention Ratio on Stock Prices. The method employed is quantitative. The population used in this study is the LQ45 companies listed on the Indonesia Stock Exchange for the period 2017-2021, totaling 45 companies, and the sample criteria selected 17 companies. Data analysis utilizes descriptive statistics, panel data regression model estimation, classical assumption tests, hypothesis testing, and MRA using Eviews 12. The results indicate a significant influence of the Retention Ratio on Stock Prices, with the statistically higher t-value compared to the t-table (2.663118 > 1.99006). However, variables such as the Board of Directors, Independent Commissioners, Return on Assets (ROA), and Earning Per Share (EPS) do not demonstrate a significant influence on Stock Prices as their t-values are lower than the critical t-value (t-value < 1.99006). The correlation results show that 88.3% of the variation in Stock Prices can be explained by the independent factors examined in this study, while the remaining 11.7% may be influenced by other unmodeled factors. These findings provide valuable insights into understanding the factors affecting company stock prices and underscore the importance of profit retention in the context of a company's market value.

Transaction cost analysis of corporate sustainability: The influence of profit management, audit committee, and women board directors

The main criterion of a company is its financial performance. The purpose of this study is to examine the impact of Profit Management, Audit Committee, and Female Director Characteristics on firm sustainability as measured by financial performance at companies in the real estate construction sub-sector listed on the Indonesia Stock Exchange. Profit Management, Audit Committee, and Female Director Characteristics are independent factors, while company sustainability is dependent. Financial performance is the control variable. Discretionary Terms Net Profit - Cash and Cash Equivalents / Total Assets t-1) is used to measure earnings management, while ROA (Return on Assets) is used to measure financial performance. The data used in this study are secondary. The subjects of this study include 17 companies in the real estate construction sector listed on the Indonesia Stock Exchange. Purposive sampling was used to collect data for this study and data were obtained from eight companies. Classical hypothesis testing, multiple linear regression testing, coefficient of determination testing, path analysis and hypothesis testing are the analytical methods used. Based on the results, it can be concluded that earnings management has a positive and significant impact on financial performance; Audit committee has a positive and significant impact on financial performance; Characteristics of female directors have a positive and significant impact on financial performance; financial performance has a positive and significant impact on corporate sustainability; and financial performance can mediate the relationship between financial performance and corporate sustainability. Accordingly, strengthening earnings management, audit committees and the special role of female directors must be considered to improve a company's financial performance. Earnings management, audit committees and the characteristics of good female directors can then improve corporate sustainability. It will be higher if supported by strong financial performance. Earnings management, audit committees and female director characteristics can be optimized if supported by good financial performance.