Total Equity Research Articles

Corporate Life Cycle, Profitability, Institutional Ownership and Dividend Policy in Companies Listed on the IDX for the 2017-2020 Period

This study to test the influence company Cycle life, profitability, ownership institutional to policy dividends on the company manufacturers listed on the IDX for the 2017-2020 period. Cycle life company classified based on growth sale with four stages cycle life company which are start-up, growth, maturity and decline. Cycle life company be measured with using retained earnings to total equity (RETE), profitability be measured with Return on Assets (ROA), Ownership institutional be measured with percentage ownership institution. The control variable of this study is age company, size company and asset growth. Dependent is Policy dividend be measured with use dividend payout ratio (DPR). Population of this study is companies listed on the Indonesia Stock Exchange except financial sector for the 2017-2020 period. Total population of 569 companies with 2850 data. The sampling technique using purposive sampling and obtained as many as 820 data that sharing dividend. Research results show that RETE has a significant negative effect to Policy dividends, Return on Assets (ROA) has a significant negative effect to Policy dividends, ownership institutional influential positive significant to dividend policy, Age effect positive significant to dividend policy, size has a significant negative effect to dividends policy and asset growth are not influence to dividend policy.

DOWNLOAD PDF DOWNLOAD XML IMPACT OF CAPITAL STRUCTURE ON THE PROFITABILITY OF MANUFACTURING COMPANIES IN NEPAL: A CASE STUDY OF SARBOTTAM CEMENT NEPAL

The study investigated the impact of capital structure on the profitability of manufacturing companies in Nepal, with a focus on Sarbottam Cement Nepal as a case study. A quantitative research design was adopted, and financial data from the company’s financial statements were utilized. The main financial ratios analyzed included debt to total assets, debt to total equity, return on total assets, return on equity, and net profit margin. Regression analysis was employed to examine the relationships between these variables. The findings of the ratio analysis revealed fluctuations and mixed performance in the debt management, profitability, and liquidity of Sarbottam Cement Nepal over the years. The debt-to-equity ratio showed variations, while the debt-to-assets ratio remained relatively stable. Return on equity and return on assets exhibited varying trends, with improvements in profitability until a decline in the later years. Net profit margin remained generally low, indicating a narrow profit margin. Liquidity remained stable throughout the years. The regression analysis results indicated that the debt-to-equity ratio and debt-to-assets ratio did not have a significant impact on return on equity. Similarly, these ratios did not significantly affect the return on assets. Liquidity and size also did not show statistically significant relationships with return on equity and return on assets. The independent variables did not demonstrate significant relationships with the profitability indicators of Sarbottam Cement manufacturing company.

The impact of liquidity on the financial growth of industrial companies listed on the Amman Stock Exchange

This research reveals the cash liquidity’s impact on the sustainability of the financial growth of the industrial public shareholding companies listed on the Amman Stock Exchange (ASE) between (2015) and 2021. The research population consists of (53) ASE-listed public shareholding industrial companies. A purposeful sample of (28) companies whose financial statements have provided all the data is selected as they meet the research variables during the research years. Using (SPSS), the appropriate statistical methods are utilized for data analysis. The findings indicate that cash flow with all its indicators; net cash flow from all activities to total assets, net cash flow from all activities to total equity, net cash flow from all activities to total profit, and net operating cash flow to total assets statistically and significantly impact the sustainability of profit growth, sales and assets of these companies. However, the net cash flow from all activities to total equity does not impact sales growth. Of the recommendations of this research is that the industrial companies incorporated in this research must pay more attention to the cash flow statement and rely on the data contained therein when making investment and financing decisions by raising efficiency in managing cash liquidity, and working to determine the suitable combination of equity and debt sources as the ideal use of this mixture may lead to a reduction in the cost of capital in these companies, which maximizes the elements of sustainable financial growth and paves the way for achieving more profitable investment opportunities available.

A Mcdm-Based Model of Malaysian Commercial Bank Performance Prior to and During Covid-19

This study aims to propose the integrated Analytic Hierarchy Process (AHP) with Technique for Order of Preference by Similarity to the Ideal Solution (TOPSIS), VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), and Preference Ranking Organization Method for Enrichment Evaluations II (PROMETHEE II) to calculate the performance of commercial banks in Malaysia before and during covid-19. The information was taken from the financial statements of eight commercial banks in Malaysia for the years 2018 through 2021. Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Liquidity, Total Liabilities, and Total Equity are six selected criteria used to evaluate the overall performance of commercial banks. Malayan Banking Berhad (MBB) had the best performance among Malaysian commercial banks, according to the findings of the research. The AHP-VIKOR and AHP-PROMETHEE II methods demonstrated that Malayan Banking Berhad remained number one for four years. Using the TOPSIS methodology, Malayan Banking Berhad is also ranked first for the years 2020 and 2021. In contrast, Alliance Bank had the worst performance among Malaysian commercial banks. Using the AHP-VIKOR and AHP-PROMETHEE II methods, Alliance Bank's ranking has remained unchanged from 2018 to 2021. In addition, the AHP-TOPSIS method only recorded Alliance Bank in last place for 2018 and 2019. The final trend results for the eight commercial banks in AHP-VIKOR and AHP-PROMETHEE II are virtually identical.

Altman Z-Score is a Method of Analyzing Bankruptcy

Altman Z-Score is one of three bankruptcy prediction methods. This study aims to determine whether this manufacturing company is experiencing bankruptcy. The bankruptcy prediction method used in this research is the Altman Z-Score method which is equipped with a cut-off point to determine the bankruptcy classification. Altman used five financial ratios that cater for companies to go public Working Capital to Total Assets (X1), Retained Earnings to Total Assets(X2), Earnings Before Interest and Taxes to Total Assets(X3), and Total Equity to Total Assets (X4). This research was conducted on manufacturing companies listed on the Indonesian Stock Exchange. The results of calculations based on the Altman Z-Score Modification method from the 2020 - 2021 quarter period show that PT. Krakatau Steel Tbk is in an unhealthy condition or bankrupt because the average Z-Score value is below 1 or Z<1 which means PT. Krakatau Steel is experiencing unhealthy finances. And the company's financial condition was not good or went bankrupt, resulting from the level of solvency that was not maximized, while other problems were caused by companies that could not manage capital properly.

ANALISIS RASIO KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PADA PT. H.M SAMPOERNA Tbk

This research of this study are based on the liquidity ratio proxied by Current Ratio and Quick Ratio, the condition of the company's financial performance is not good. Profitability ratio proxied by Net Profit Margin, Return on Assets, and Return on Equity, the company's financial performance is good. Solvency ratio proxied by Debt to Total Assets Ratio and Debt to Total Equity Ratio, the company's financial performance is good

FAKTOR – FAKTOR YANG MEMPENGARUHI RASIO PERUBAHAN LABA PADA PT. INDOFOOD SUKSES MAKMUR TBK.

In this study found a problem, namely Asset Value, Debt Value and Profit Value at PT. Indofood Sukses Makmur Tbk. experiencing fluctuations. This study aims to determine the effect of Current Ratio, Debt to Equity Ratio, and Return On Assets to changes in earnings and the purpose to determine the effect of Current Ratio, Debt to Equity Ratio, and Return On Assets to changes in earnings. a list of tables in the form of financial statements containing the Statement of Net Profit, Gross Profit, Net Sales, Total Equity, Total Liabilities and Total Assets. The population is 20 years and the sample is 15 years. The object of this research is located at PT. Indofood Sukses Makmur, Tbk with its address at Sudirman Plaza, Indofood Tower, 21st Floor. The data collection techniques in this research are library and documentation studies. This data analysis was carried out with the help of the SPSS program, namely by performing multiple linear regression analysis through the requirements test, namely passing the classical assumption test consisting of normality test, multicollinearity test, heteroscedasticity test, autocorrelation test and hypothesis testing. Current Ratio (CR) has no significant effect on Changes in Profit. Return On Assets (ROA) has no significant effect on changes in profit. Debt to equity ratio (DER) has no significant effect on changes in earnings. and Current Ratio (CR), Return On Assets (ROA) and Debt to Equity Ratio (DER) have a simultaneous effect on Changes in Profit for Investors, the results of this study are expected to provide useful data in pursuing business choices. It is also believed that in making decisions not only depend on information related to the ratios contained in the study, but it is necessary to pay attention to other factors and ratios in relation to Profit Changes. For the company, it is expected to pay more attention to the company's ability to generate profits. For further researchers, it is expected to increase the variables and wider observations.

The Effect of Altman Z-Score as Tool for Predicting Potential Bankruptcy on Stock Prices in Retail Subsector Companies Listed on the IDX in 2019 – 2021

The purpose of this study is to determine the Effect of Altman Z-Score as Tool for Predicting Potential Bankruptcy on Stock Prices in Retail Companies Listed on the IDX in 2019 – 2021. The data collection technique in this study uses documentation methods as well as literature studies published by the company. The data in this study uses financial statements published by retail sector companies listed on the Indonesia Stock Exchange in 2019 – 2021 by sampling using purposive sampling techniques. Companies that have met the sampling criteria are 11 companies. The data analysis method in this study uses Altman Z-score bankruptcy analysis, as well as for financial ratios using the ratio of Altman Z- score consisting of Working capital on total assets, retained earnings on total assets, profit before tax and interest on total assets, and book value of total equity at the book value of total liabilities. The next data analysis technique in this study used classical assumption tests, simple liner regression, and other hypothesis test tools. The results of this study showed that the Altman Z-score had a significant effect on the Stock Price of 17.7% with a calculated t value of 2.578 > 2.03951 (0.05 significant α) from the table. Based on the results of the Calculated Altman Z-score classification, it is shown that in 2021 there are 36 companies in a state of bankruptcy, 28% are in a state of gray area, and 36% are in a safe state.

IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL COMPANIES IN NIGERIA

A company is usually faced with the challenge of financing investments; the management is to decide on the optimal mix of capital structure decision. This study sets to investigate the influence that capital structure of a firm has on financial performance of listed manufacturing firms in Nigeria for period spanning from 2017-2021. The dependent variable of the study is financial performance proxy by return on asset (ROA) while the independent variable of the study is capital structure proxy by long-term debt, short term debt, total debt ratio and total equity ratio. The population of the study consist of all the 5 listed manufacturing firms in Nigeria and the sampling technique was the census arriving at a 25 firm year observations. The multiple regressions was employed for the data analysis and the study revealed that long-term debt ratio has a negative insignificant relationship with return on asset while short-term debt, total debt ratio and total equity ratio have positive significant influence on return on asset. The study recommends that the management of listed manufacturing firms in Nigeria should pay attention in curtailing long-term debt and improving on short term debts in order to improve financial performance.

PERBANDINGAN KINERJA KEUANGAN, STRUKTUR MODAL, DAN NILAI PERUSAHAAN PADA PERUSAHAAN KELUARGA DAN PERUSAHAAN NON-KELUARGA

This study aims to determine the differences in the financial performance, capital structure, and firm value in family and non-family firms listed on the Indonesia Stock Exchange 2017-2019. The sampling method in this study used purposive sampling technique and data analysis used a pairwise sample methodology by comparing family and non-family firm. The results of this study indicate that there is no difference in finance performance as proxied by sales growth, sales, return on asset (ROA), return on equity (ROE), gross profit margin (GPM), net profit margin (NPM), but there are significant differences in total asset turn over (TATO). The capital structure also shows that there is no difference between the debt to total asset ratio (DAR) and the debt to total equity ratio (DER) proxy, but there is one significant proxy, namely pre-sales working capital and there is no difference in firm value as proxied by earning per share EPS between family and non-family firm.

AI-Based Prediction of Capital Structure: Performance Comparison of ANN SVM and LR Models.

Capital structure is an integral part of the corporate finance that sources the funds to finance growth and operations. Managers always have to maintain value of the firm to be higher than the cost of capital in order to maximize the shareholders wealth. Empirical studies have used sources of finance like debt and equity as variables of capital structure. A choice between debt and equity finance analyzes the firm's ability to perform under the financially constrained environment to attain the sustainable growth. Therefore, it gives rise to a dire need to estimate the cost of capital precisely. We examined the capital structure of top ten market capitalization of the stock markets included in MSCI Emerging index with the use of artificial neural networks, support vector regression, and linear regression in forecasting methods. The capital structure is measured as the proportion of total debt over total equity (Tang et al., 1991). Other financial ratios such as profitability, liquidity, solvent, and turnover ratios were considered as drivers of the capital structure. Applying logistic and hyperbolic tangent activation functions, it was concluded that ANN has a great potential of replacing other traditional forecasting models with the nonstationary data. This research contributes with a new dimension for estimation through different activation functions. There is a possibility of ANN dominance as compared to the other models applied for predictability in financial markets.

Be Wary of Rich Manipulators: Differences in the Performance of Different Corporate Structures in the Face of Hostile Takeovers

In light of the pressing concerns surrounding mergers and acquisitions (M&A) in recent times, the question “What sort of ownership structure is more likely to be bought in bad faith (hostile takeover)?” is addressed in this study. The disparities in company structures and the prospect of hostile takeovers are the primary topics discussed in this article. The research applies a regression model to the analysis of a substantial number of domestic M&A cases and overseas M&A cases involving Chinese firms that have occurred within the past several years. It has been discovered that businesses that have a high equity dispersion, high equity liquidity, poor operational capability of the firm, small total equity, and no dual equity structure are more susceptible to being taken over by an adversary. The findings of this study are more reliable because, in addition to taking into account local firms listed on the A-share market, it also takes into account Chinese businesses that are listed on international markets. The findings of the study can assist owners in enhancing their management practices, optimizing their equity structures, and gaining experience in warding off hostile takeovers.

On stock-based loans

We investigate the equilibrium interest rate charges on non-recourse and recourse loans secured by stock. In such loans, the client retains the option to prepay and recover the collateral stock. We adopt a structural model of the firm where debt levels, with endogenous bankruptcy, affect equity dynamics. Complicating matters, the link between total equity and the price of a share of stock that forms the collateral depends on the extent of dilutions and buybacks that occur. For levered firms, due to dilution in bad states of nature, stock prices typically fall faster than equity values; and for firms that engage in buybacks in good states of nature, stock prices will rise faster than equity values. Banks that ignore these features underestimate the equilibrium interest rate charge on stock-based loans. We provide an analysis of individual stock-based loans and their portfolio characteristics, the latter of which can be used by banks to ascertain capital requirements.

Impact of Capital Structure on Firm Performance of Food and Beverage Listed Companies on the Stock Exchange of Vietnam

This study tested the relationship between capital structure and firm performance. Data were collected from 41 food and beverage companies listed on the Vietnam Stock Exchange from 2017 to 2021. Three variables were used to measure the performance of each company, including ROA, ROE and EPS. The ratio of total debt to total assets (DA), total debt to total equity (DE), short-term debt to total assets (SDTA) and long-term debt to total assets (LDTA) are the key factors. for capital structure. Besides, growth rate (GROWTH) and company size (SIZE) are also applied in the model as control variables. As a result, most of the capital structure variables have a negative effect on each of the firm’s performance variables. It is noteworthy that this study also illustrates the negative correlation between ROE and capital structure shown, which was thought to be insignificant in many previous studies but also shows a negligible relationship between SDTA and SDTA. Moreover, ROE was rarely seen in previous studies. Furthermore, the research results also show a negligible impact on growth rate and a positive relationship between size and firm performance.

Impact of Capital Structure on Profitability: Panel Data Evidence of the Telecom Industry in the United States

Debt finance, when considered a source of finance, always leads to financial risk; however, it is also considered a source of increased profitability in the normal business scenario. It has always been challenging to find the correct debt equity combination. In the discussed sample of the telecom industry in the USA, an abnormally high total liability-to-total assets ratio was observed. Thus, it is inclined to investigate the capital structure (CapSt) effect on firms’ profitability. By taking annual data of the telecom industry from 2012 to 2020 in the USA, unbalanced cross-sectional data (panel data) comprising 421 firm-year observations for 72 firms were studied using pooled panel regression, univariate analysis, correlation, and descriptive statistics models. We decided to test the impact of CapSt (Total Liabilities to Total Assets (TLsTAs) and Total Equity to Total Assets (TETAs)) on the profitability (Return on Assets (ROA) and Return on Equity (ROE)) of firms in the telecommunication industry in the USA. The results reveal that the ratio of TLsTAs has a significant impact on ROA, and TETAs has a significant impact on ROA. However, TLsTAs and TETAs have no impact on ROE.

DETERMINANTS OF DIVIDEND POLICY: AN EMPIRICAL INVESTIGATION OF INDIAN COMPANIES USING PANEL DATA ESTIMATION TECHNIQUE

The decision to pay dividends by companies is among the most researched and contentious topics in corporate finance as, according to some scholars, it has a bearing on companies' valuation. The purpose of this research is to find out important factors that act as determinants of the dividend policy of Indian companies. The study employs secondary time series data gathered from the latest data available from the CMIE (Centre for Monitoring India) Prowess database. The study has been divided into three time periods i.e. 1) 2000-01 to 2009-10, 2) 2010-11 to 2020-21, 3) 2000-01 to 2020-21, by merging the two time periods and the panel data regression technique has been applied. The results of the analysis suggest that Return on assets, Debt to equity ratio, Cash and cash equivalents & Debt to total capital ratio significantly affect dividend yield from 2000-01 to 2009-10 and from 2000-01 to 2020-21, whereas the results of the analysis from period 2010-11 to 2020-21 found Sales/Size, Return on the asset, and Debt to total equity ratio as determinants of dividend policy. These results corroborate the earlier findings that profitability, liquidity, and leverage are important factors in the decision-making of companies regarding the payment of dividends.

Performance Analysis of Insurance Companies Operating in the Turkish Insurance Sector’s Life and Retirement Branches Using Multiple-Criteria Decision-Making Methods

Bu çalışmada Türk sigorta sektöründe hayat/emeklilik branşında faaliyette bulunan sigorta şirketlerinin performanslarının çok kriterli karar verme (ÇKKV) tekniklerinden CRITIC (CRiteria Importance Through Intercriteria Correlation) ve TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) yöntemleri kullanılarak ölçülmesi amaçlanmıştır. Bu kapsamda Türk sigorta sektöründe faaliyet gösteren 18 hayat sigorta şirketinin 2010 – 2020 yılları arasındaki verileri ele alınmıştır. Analiz kapsamında CRITIC – TOPSIS bütünleşik modeli için Kısa Vadeli Borçlar/ Toplam Aktifler, Dönem Net Karı/ Toplam Aktifler, Cari Varlıklar / Kısa Vadeli Borçlar, Faaliyet Giderleri / Toplam Varlıklar, Gerçekleşen Hasar / Kazanılmış Prim (Net), Toplam Özkaynaklar / Toplam Aktifler, Vergi Öncesi Kar /Alınan Primler (Brüt), Net Kar / Toplam Özsermaye, Alınan Primler (Net) / Alınan Primler (Brüt) ve Teknik Kar-Zarar / Alınan Primler kriterleri seçilmiştir. Çalışmada seçilen kriterlerin öncelik ağırlıkları CRITIC yöntemi ile tespit edildikten sonra TOPSIS yöntemi ile sigorta şirketleri performans bakımından sıralanmıştır. Çalışma sonucunda ele alınan yıllar itibarıyla hayat sigorta şirketlerinin performanslarının belirlenmesinde en önemli kriterin Kısa Vadeli Borçlar/Toplam Aktifler olduğu tespit edilmiştir. Çalışma sonucunda ele alınan yıllar itibarıyla hayat sigorta şirketlerinin performanslarının belirlenmesinde en önemli kriterin Kısa Vadeli Borçlar/Toplam Aktifler olduğu tespit edilmiştir. Ayrıca Halk Hayat ve Emeklilik A.Ş. ile Ziraat Hayat ve Emeklilik A.Ş.’nin ele alınan yıllarda performans sıralamasında ilk sıralarda yer aldığı BNP Paribas Cardif Hayat A.Ş.’nin analize dahil edilen tüm yıllarda performans sıralamasında son sıralarda olduğu tespit edilmiştir.

Firm Size and Business Risk on Debt Policy with Profitability as Moderating Variables

This study aims to examine the effect of firm size and business risk on debt policy with profitability as a moderating variable. The proxy for company size uses Natural Logarithms (Total Assets), business risk uses net income to total equity, and profitability uses Return On Assets (ROA). The population used in this study is property and real estate companies listed on the Indonesia Stock Exchange for the 2018-2020 period. This research uses quantitative research with multiple linear regression model. By using purposive sampling, 55 companies were found that met the criteria as research samples. This study uses secondary data obtained from the Indonesia Stock Exchange and sample company websites. The analytical method used in this study is Moderated Regression Analysis (MRA) using the Eviews 9 application. The results of this study indicate that company size and business risk have a positive and significant effect on debt policy. Profitability as a moderating variable is proven that profitability weakens the relationship between firm size and debt policy, while profitability strengthens the relationship between business risk and debt policy.

ANALISIS KINERJA KEUANGAN UNTUK MENILAI KESEHATAN PERUSAHAAN FARMASI MILIK BUMN (STUDI KASUS PT INDOFARMA (PERSERO) TBK.)

This study aims to determine the financial performance of PT Indofarma (Persero) Tbk. the period 2014 - 2019 whether it is in good condition or not. The method of measuring performance is by assessing the level of health. Based on the Decree of the Minister of State-Owned Enterprises Number: KEP-100 / MBU / 2002 it is focused on the financial aspect, consisting of 8 indicators including; return on equity, return on investment, cash ratio, current ratio, collection periods, inventory turnover, total asset turnover, total equity to total assets. The results of 8 indicators for 2014 - 2019 fluctuated, in 2014 the total score was 37.5 in the BBB category, in 2015 the total score was 42 in the BBB category, in 2016 the total score was 32.5 in the BB category, in 2017 the total score was 32.5 in the BB category, in 2018 the total score was 34.5 in the BB category, and in 2019 the total score was 40.5 in the BBB category. With the results of this assessment, it can be concluded that for 2014-2019 the level of financial health of PT Indofarma (Persero) Tbk. Get the predicate less healthy, because the total score at 6 years <65.

ANALYSIS OF COMPANY FINANCIAL PERFORMANCE USING DU PONT SYSTEM METHOD AT PT. ANEKA TAMBANG (PERSERO) DURING THE PANDEMIC AND BEFORE THE COVID-19 PANDEMIC

This study aims to measure the company's financial performance by using the Du Pont System at PT. Aneka Tambang (Persero) During the Pandemic and Before the Covid-19 Pandemic. The method used in this study is the Du Pont System method using the ratio Net Profit Margin (NPM), Total Assets Turnover (TATO), Return On Invesment (ROI), Equity Multyplier (EM), dan Return On Equity (ROE) from secondary data obtained from www.antam.com/ which is the official site of PT. Aneka Tambang (Persero) Tbk. Based on the results of calculations using Du Pont System shows that financial performance PT. Aneka Tambang (Persero) During the Pandemic and Before the Covid-19 Pandemic, it was considered not good because ROE which has decreased. ROE which decreased due to the value of ROI which decreased by 2,78% and the decreasing EM value by 0,08 time. ROI which decreased due to the decreasing NPM value and the decreasing TATO value by 0,22 time. While the declining value of EM is due to the fact that the company is less than optimal in generating total assets from total equity. In this case, the higher the value of Equity Multiplier the more external funds or debt the company uses to fund company activities.