Total Assets Research Articles

STRATEGI DIVERSIFIKASI PORTOFOLIO: ANALISIS DAMPAK RISIKO DAN KEUNTUNGAN PADA BANK KONVENSIONAL DAN SYARIAH MILIK NEGARA DI INDONESIA

This research examines the relationship between credit portfolio diversification and the risk and return of state-owned banks (Bank BUMN) from 2019 to 2023. Using multiple linear regression analysis, it evaluates the impact of the Herfindahl Hirschman Index (HHI) on credit or financing risk (NPL and NPF) and bank returns (ROA, ROE) among state-owned banks listed on the Indonesia Stock Exchange. Control variables include bank size, loan or financing to deposit ratio (LDR and FDR), and equity to total asset ratio (ETA). The results show that credit portfolio diversification reduces credit risk in BUMN banks, suggesting that spreading credit exposures across sectors can mitigate risk. However, diversification does not significantly affect bank returns (ROA, ROE). Control variables such as bank size, LDR and FDR, and ETA show no significant impact on credit risk, ROA, or ROE. This study provides empirical evidence on the effectiveness of financing portfolio diversification in managing credit risk within state-owned banks, considering Islamic banking principles. While diversification can mitigate credit risk, its impact on profitability requires careful consideration. BUMN banks should implement robust risk assessment frameworks and strategic oversight to maximize diversification benefits while maintaining financial stability and adhering to ethical and Sharia-compliant financial practices.

Liquidity and Profitability in the Colombian Oil and Natural Gas Extraction Sector: Analysis 2011 – 2021

The dynamics brought about by the adoption of the International Financial Reporting Standards have a direct impact on the various Colombian economic sectors; highlighting the Oil and Natural Gas Extraction sector as one of the most important in terms of wealth generation and exports of the nation. For this reason, the present study was directed in order to analyze the indicators of Liquidity and Profitability in the Colombian oil sector between 2011 and 2021. For the development of the study, a quantitative investigation is proposed with a documentary base where it is carried out an analysis of secondary sources from the Superintendence of Companies from which financial data of the Oil and Natural Gas Extraction sector in Colombia is taken, on which a descriptive processing is carried out and subsequently a correlational analysis between the liquidity and profitability indicators. The results show a level of correlation between the liquidity indicators, referring to the Current Ratio and Acid Test, and those of Profitability, Return on Total Assets, and Return on Equity. It is concluded that the correlation between these variables would be explained by the rates and sales volumes of said sector; which constantly carries out transactions of high sums of money accompanied by multiple policies and methods to ensure the transaction and thus not unbalance the receipt of income by the industry.

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.

Pengaruh Karakteristik Perusahaan Terhadap Financial Distress Pada Perusahaan Manufaktur Sub Sektor Industri Barang Konsumsi Di BEI

Financial distress is a situation where a company experiences consecutive financial declines over several years which can lead to bankruptcy. Financial distress usually results from the failure of an entity to repay its debtors because it does not have sufficient funds to continue its operations. This research aims to determine the effect of leverage and company size on financial distress in manufacturing companies in the consumer goods industry sub-sector listed on the IDX for the 2019-2022 period. Where the leverage variable uses the Debt to equity ratio (DER) formula, the company size variable uses the LN Total Assets formula and the financial distress variable uses the Springate Scores (S-Scrores) formula. This type of research is quantitative with a sampling method based on purposive sampling, obtaining 33 companies which were used as research samples multiplied over 4 years for a total of 132 research data. By using secondary data obtained from the official IDX website during the research period. And processed using the SPSS version 26 program. The results of this research show that leverage has a negative effect on financial distress and company size has no effect on financial distress

Empirical evidence on the impact of the "new round" of Sino-US trade frictions on China's foreign trade industrial policy and high-quality development.

The global attention on industrial policy's effectiveness spans across various sectors, particularly in international trade where the focus is on enhancing the quality of foreign trade, which is crucial to understand how research hotspots and key issues can synergize. We consider the 2018 "new round" of Sino-US trade friction as an external event and analyze panel data from 2009 to 2022 comprising 1141 Chinese A-share listed enterprises. Our empirical research unequivocally demonstrates that industrial policy has significantly propelled China's foreign trade towards high-quality development by 1.8240%. We conducted rigorous tests for robustness, heterogeneity, and endogeneity. Additionally, our results reveal that inhibitory influences arising from industrial policy on total assets or R&D investment attenuate this promotion effect; There exists a diminishing promotion effect between total assets and R&D investment. Our paper provides valuable insights into understanding their logical relationship while offering guidance for enterprises, markets, and governments in overcoming challenges collectively.

Tinjaun Yuridis Terhadap Kesiapan Kewajiban Spin Off Bagi Unit UsahaSyariah (UUS) Menjadi Bank Umum Syariah (BUS)

Law Number 21 of 2008 concerning Sharia Banking in Article 68 paragraph 1 and Article 40 Article 40PBI No. 11/10/PBI/2009 mandates that every Sharia Business Unit (UUS) which is a sharia unit in aConventional Commercial Bank (BUK) to separate itself (spin-off). and it is explained that UUS is obligedto separate into BUS if the value of UUS assets has reached 50% (fifty percent) of the total asset value ofits parent BUK. The spin-off time is no later than 15 (fifteen) years from the enactment of the law, namely2023. The aim of this writing is to determine the impact of the spin-off on UUS by analyzing the solutionsthat can be offered. The research results show that it is necessary to review Law Number 21 of 2008concerning Sharia Banking by considering the financial condition of UUS. Apart from that, UUS whichhas carried out a spin-off by becoming a new BUS can optimize the use of Third Party Funds in the formof financing and other services. In order to encourage BUS growth, support from the government isneeded, such as providing tax incentives and simplifying regulations on capital participation. Apart fromthat, the new BUS needs to carry out various innovations by adding financing products and developingexisting products. This research aims to determine the readiness of the Spin Off obligation for UUS tobecome a BUS and the issue of readiness to fulfill the obligations of UUS to become a BUS in July 2023.Keywords: Spin-off Obligations, Sharia Business Units (UUS), Sharia Commercial Banks (BUS)

Determining the leaders of Ukraine’s insurance market based on the adaptation of the DEA method

The escalating wartime risks in Ukraine has led to a rapid reduction in insurance coverage in life and non-life segments. The purpose of the study is to rank Ukraine’s insurance companies based on an adaptation of the DEA method to the insurance market conditions. The study utilized the Supervisory Statistics of the National Bank of Ukraine as data. The study also used ranking of insurance companies based on technical efficiency criteria. The output indicators include the profitability of total capital (Output1) and the occupied share of the insurance market (Output2). The input indicators comprise the volume of total assets of insurers (Input1), the share of equity capital in assets (Input2), the level of gross payments (Input3), and the level of payments to insurance reserves (Input4). The ranking of insurance companies is based on minimizing the distance of each from the bounds of technical efficiency by solving a set of optimization problems. Based on the modeling results, a list of market leaders (7 companies) was formed for the end of the third quarter of 2023. They served nearly 37% of the insurance market in Ukraine, accumulating 41.5% of the total assets of this financial market sector. So, the primary issue for insurance companies is the loss of solvency due to the absence of adequate levels of insurance reserves. Therefore, priority measures should include strengthening regulatory constraints in this financial market segment to facilitate its qualitative renewal.

Optimization of Big Data Analysis Resources Supported by XGBoost Algorithm: Comprehensive Analysis of Industry 5.0 and ESG Performance

To enable state-owned enterprises in Industry 5.0 to better carry out M&A activities, it is important and necessary to provide early warning of M&A risks, which directly affects the interests of both parties and even affects the effectiveness of state-owned enterprise reform. The author proposes the optimization of big data analysis resources supported by the XGBoost algorithm: a comprehensive analysis of Industry 5.0 and ESG performance. Design a comprehensive evaluation system to measure the M&A risk of state-owned listed companies. Using Python programming language to achieve data crawling and processing. Build an early warning model using the XGBoost algorithm. To further evaluate the effectiveness of the early warning model, comparative experiments were conducted. Using multiple linear regression models to study the significant factors of merger and acquisition risk. The experimental results show that the prediction accuracy based on the XGBoost algorithm is 80%, which performs the best among all models and has stronger reliability and applicability. ConclusionThe return on investment capital, operating profit margin, and net profit from paid consideration are more important and effective in predicting merger and acquisition risks; The total asset turnover rate, return on investment capital, equity balance, and audit quality are more conducive to suppressing merger and acquisition risks.

Growth rate dalam sektor barang baku dan primer di Bursa Efek Indonesia: Mana lebih baik?

The Sustainable Growth Rate is the maximum growth rate of a company so that it can grow without running out of funds from funding activities such as increasing shareholder capital ownership and drawing loans from creditors. This study measured, tested, and analyzed factors affecting sustainable growth. Some of the factors used in this study are leverage, profitability, and total asset turnover. This study uses objects from raw material sector companies and primary sector companies listed on the Indonesia Stock Exchange for 2018 - 2022, during which data collection was carried out using the purposive sampling method. The form of research used is associative research, a method that examines the relationship between variables, with a quantitative approach. The research data is based on secondary data, namely the company's annual financial report, which is available and has been audited by an independent auditor. Data processing uses multiple linear regression. The study results show that Leverage (DER) and Profitability (ROA) positively affect sustainable growth, providing practical insights for financial analysts and professionals in the raw material and primary sector industries. Total asset turnover (TATO) does not affect the sustainable growth rate. This study also shows that raw material sector companies have a higher sustainable growth rate than primary sector companies.

Bitcoin's Effect on Selected Crypto Assets: Quantitative Evidence

The main objective of the study is to systematically investigate the effects of Bitcoin on specific crypto assets. In this context, a sample of 135 observations between 2020W01 and 2022W33 for seven crypto assets with the highest value in the financial markets, including Ethereum, Tether, USD Coin, BNB, XRP, and Cardano, has been included in the study sample. These crypto assets, along with Bitcoin, constitute almost 95% of the total crypto asset portfolio. This situation increases the importance of representing a broad universe in the study and contributes to the academic literature. To examine the effects of Bitcoin on the selected crypto assets, a Multivariate Dynamic VAR Model has been used. The model assumes causality among variables. Variables that do not meet this assumption have been excluded from the study sample. The results of the study demonstrate that Bitcoin exhibits significant and one-way effects on all cryptocurrencies. However, the impact of other crypto assets on Bitcoin has been negligible. In this context, it is emphasized that investment decisions obtained from two-way evaluations may be risky and misleading. In order to reduce investment risks for crypto assets to more acceptable levels, the use of comprehensive analysis methods is recommended.

Minat Masyarakat Muslim terhadap Jasa Bank Syariah Perspektif Bank Syariah dan Perilaku Masyarakat

Indonesia is an ideal market for Islamic banking because the majority of the population is Muslim. Only 6.63% of the total national banking assets were owned by Islamic banks in Indonesia in 2022. This shows that people are not too interested in using Islamic bank services. This research is qualitative research that uses a case study approach. Data collected from interviews with a hundred randomly selected people. The purpose of this study is to determine the level of public demand for Islamic banks based on the perspective of Islamic banks (marketing mix) and community behavior. The results of the study show that factors related to Islamic banks include the lack of office networks and promotions that make Muslims not use their services. In addition, personal and social factors are also the most important factors in influencing people's behavior. The study recommends Islamic banks to create marketing policies that are appropriate to the Muslim community.

Exploration of Financial Statements CV. Wian Mandiri Based on Financial Accounting Standards for Micro, Small, and Medium Entities

The title of the research is "Exploration of CV. Wian Mandiri Financial Report Based on the Standard of Financial Accounting for Micro, Small, and Medium-Sized Entities." The research uses a qualitative descriptive method with a case study approach on CV. Wian Mandiri. Data was collected from observation, interviews, and documentation, and then analyzed using a descriptive method. The research aims to determine the practice of recording and preparing financial reports based on SAK EMKM in CV. Wian Mandiri, located at Bhineka 1 Street, Number 52, Pasir Gunung Selatan, Cimanggis Depok, West Jakarta. The results of the research show that CV. Wian Mandiri's financial report is still simple, recording only income and expenses, which are then accumulated to determine the profit and loss at the end of the month. After applying SAK EMKM in reconstructing the financial report, it was found that CV. Wian Mandiri's profit and loss report showed a profit of Rp. 30,042,000.00 in October and Rp. 29,887,000.00 in November. The balance sheet report for October and November showed total assets of Rp. 76,408,000.00 and Rp. 106,446,000.00, with equity and liabilities of Rp. 76,408,000.00 and Rp. 106,446,000.00, respectively. The notes to the financial report, which describe the general statements of the entity, the accounting policies adopted, and explanations about the accounts on the income report, cannot be explained because the company considers them to be within the company's private domain.

The Effect of Total Asset Turnover (TATO) and Debt to Equity Ratio (DER) on Return on Assets (ROA) at PT Indosat Tbk in 2013-2023 (Case Study on a Company Listed on Indonesia Stock Exchange)

This study aims to analyze the effect of Total Asset Turnover (TATO) and Debt To Equity Ratio (DER) on Return On Assets (ROA) at PT. Indosat Tbk from 2013 to 2023. This research method is quantitative using secondary data from PT Indosat's financial statements. The sampling technique was carried out by purposive sampling with specific criteria, namely the quarterly financial statements of PT. Indosat Tbk during the period 2013-2023. The Classical Assumption Test was used to test the research instrument, as well as Pearson Product Moment correlation analysis, coefficient of determination, t-test, f-test, and multiple linear regression to measure the influence of variables. The findings show that the relationship between TATO and ROA is very low with a correlation value of 0.146, while the relationship between DER and ROA is also very low with a correlation value of 0.115. Based on the determination analysis, the contribution of TATO and DER to ROA is only 3.2%, with 96.8% influenced by other factors outside the scope of this study

The Impact of Tax Incentives on the Growth of Small and Medium-Sized Enterprises: A Comparative Study Based on Industry

Tax incentive policies have been widely used as a crucial tool to promote the development of Small and Medium-sized Enterprises (SMEs), but their effectiveness varies across different industries and policy types. This study utilizes a comprehensive panel dataset from 2015 to 2023 to investigate the impact of Value-Added Tax (VAT) and income tax incentives on the growth of SMEs in China. Through fixed effects model analysis, we find that both VAT and income tax incentives significantly enhance SMEs' sales revenue and total asset growth. However, the magnitude of these effects differs substantially across industries, with high-tech and information technology service industries benefiting the most. Our industry comparison analysis reveals that the effectiveness of tax incentives is closely related to industry-specific characteristics, such as research and development (R&D) intensity and capital requirements. These findings provide key empirical evidence for optimizing SME tax policies and suggest that a more nuanced, industry-specific approach to tax incentives is needed. This study not only contributes to the literature on SME growth and tax policy effectiveness but also offers important insights for policymakers to refine SME support systems in the context of rapid technological change and economic transformation.

Capital Structure and Profitability of Non-Life Insurance Company in Nepal

Purpose: The study aims to find out the non-life insurance firms in Nepal that create profit using capital. The research closely examines several important factors like business size (Size), liquidity ratio (LQ), total debt to total assets (TDR) and equity to total assets (ETA).Methods: Secondary data were gathered from annual reports and financial statements of twelve non-life insurance firms in Nepal which provided basis for this descriptive and explanatory research design with quantitative research approach. This study used multiple regression analysis and Pearson correlation to find important impact and associations by SPSS data analysis.Results: Debt ratios and ROA and ROE have a negative association that implies too much leverage reduces profitability. Although lowering risk depends mostly on liquidity, it also lowers assets returns. This is seen by the liquidity ratio and it greatly reduces ROA but has little effect on ROE. The equity ratio reveals how difficult it is to deploy equity correctly with a strong negative connection with ROA and a great negative link with ROE. Further illustrating the advantages of economies of scale, organizational size positively links with returns on Assets (ROA). All academics, legislators and practitioners agree that the expansion and competitiveness of the insurance sector depend on a sound capital structure.Conclusion: According to the study, non-life insurance firms need to improve profitability by means of strategic capital structure management. Managers need to monitor whether the company has adequate liquidity and a good debt equity ratio or not if the company wants to improve overall financial success.

The Effect of Net Profit Margin (NPM) and Total Assets Turnover (TATO) Return on Assets (ROA) at PT Telekomunikasi Indonesia (Persero) Tbk for the Period of 2019-2023

Finding a correlation between ROA and the independent Factors nett profit margin and total asset turnover is the main objective of this study. The research population consists of twenty quarterly financial reports that span the years 2019–2023, sourced from PT Telekomunikasi Indonesia (Persero) Tbk. The study employs quantitative approaches using data extracted from the company's financial records and a sample strategy based on purposeful sampling. To analyse the data, statisticians employ tools like coefficient of determination, hypothesis testing, multiple linear regression, and correlation. Net Profit Margin (NPM) and Total Assets Turnover (TATO) have a partial and simultaneous effect on Return on Assets (ROA) at the 0.05 level of significance

Reasons for capital increase of securities brokers

Introduction: The study uses a linear regression model based on Pooled OLS, FEM, REM, GLS panel data to examine the impact of financial capacity on sustainable growth in order to create more grounds for evaluating the financial capacity of Vietnamese securities companies.Methods: The study excludes newly established or merged companies whose financial data do not ensure comparability and those that do not disclose sufficient information required for the study. The research uses a linear regression model based on panel data to test the impact of financial capacity on sustainable growth, thereby providing a basis for evaluating the financial capacity of Vietnamese securities companies. Results: Results show evidence identifying 8 independent variables explaining 89.2% of the variation in the dependent variable (SGR), including: Size of the securities company (Size); Self-financing ratio (SFA); Debt to equity ratio (Leverage); Return on equity (ROE); Return on total assets (ROA); Additional capital from profit ratio (RER); and Capital adequacy ratio (Caps).Conclusions: Based on the research, the author offers recommendations for managers of securities companies in making financial decisions

Logistics optimization and inventory control in Peruvian grocery companies

The company being analyzed, which specializes in selling groceries, faces significant challenges in its logistics management. Lack of supply chain visibility prevents informed inventory decisions, resulting in product overages or shortages. Supply chain delays affect profitability, and inaccurate demand planning generates additional costs and financial losses. This study, which is relevant to the Sustainable Development Goals, mainly in combating poverty through the economic success of SMEs, evaluates the effectiveness of logistics management in inventory control. The results show an increase in ending inventory by 105.12% and a decrease in inventory turnover by 29.29%, suggesting a strategic accumulation of stock. In addition, an improvement in the company's liquidity was observed, with an increase in total current assets by 107.66% and a financial restructuring oriented towards expansion projects. These findings underscore efficient logistics management's importance in optimizing resources and improving customer satisfaction. Future research should focus on the integration of advanced technologies and the implementation of sustainable financing strategies to further improve operational efficiency and profitability.

Analysis of the Impact of the Covid-19 Pandemic on Financial Performance

This study aims to analyze financial performance during and after the covid-19 pandemic in information technology companies in ASEAN countries. Financial performance variables are proxied by profitability ratios using Return On Asset (ROA), liquidity ratios using Current Ratio (CR), activity ratios using Total Asset Turnover (TATO), and solvency ratios using Debt To Equity Ratio (DER). Using company financial data with a cross-country population in countries that are members of the ASEAN countries including Indonesia, Malaysia, Singapore, Philippines, and Thailand. The total number of samples used was 84 information technology companies. This research is a quantitative research with analysis method using Wilcoxon Signed Ranks Test comparative analysis. The results showed significant differences in Indonesia in CR and DER, and in Thailand in TATO. This study also shows from the five countries that Indonesia has the best financial performance because it experiences a significant average increase. compared to other countries that tend to experience an average decrease even though it is not significant. The decline can be seen in Malaysia and Thailand which experienced an average decline, while in Singapore and the Philippines although there was a decrease but there was also an increase.

A systematic risk assessment approach for urban roadside infrastructure assets

Revealing potential risks and the influence of these risks on urban roadside vulnerable/risky zones has been a great deal for the last decades owing to increasing vehicular mobility. This study aimed to develop a risk assessment methodology for urban roadside infrastructure assets. In this context, seven risk parameters that are likely to affect hazardous aboveground assets installed on urban roadsides were determined, and weights of each parameter (order of importance) were presented based on expert surveys and literature information using the Analytic Hierarchy Process (AHP) method. Mathematical models were set up for each risk parameter using real field data, The American Association of State Highway and Transportation Officials (AASHTO), literature, related standards, and expert surveys by linear, nonlinear, and binary logistic regression analyses. Risk groups were created, and precautions were offered. The efficiency of the models was verified based on the 28 accident records and field observations in 172 assets. When considering the assets that undergo traffic accidents, 71% of the total assets are ranked in the critical and high-risk group. This ratio is consistent with the risk group definitions assigned in this study; thus, the model proposed is accurate and can be applied reliably. The verification process of the total risk model was sufficiently successful to be used in practice and can be generalized by considering the road and traffic characteristics, infrastructure facilities, and future requirements of the regions or countries that reflect similar historical and cultural concerns. Practitioners, governmental institutes, and researchers can apply this methodology to provide their own data with high transparency and reliability.