Family firms and financial performance: The cost of growing

This study aims to determine the financial position and financial performance Cooperative Sucofindo Jaya (KOPSUCOFINDO JAYA) from fiscal year 2009-2011 through a comparative analysis / comparisons and ratio analysis. From the research, the authors obtained a picture that results of the financial position and financial performance of KOPSUCOFINDO JAYA as follows: (1) To Horizontal Analysis of the Balance Sheet shows the overall unfavorable developments as the rise of short-term debt experienced a greater percentage increase than the increase in current assets (2) For Horizontal Analysis of the SHU, SHU in 2010 an increase of 125.38% compared to 2009 and in 2011 increased by 282.47% compared to 2009, but this increase was not followed by a reduction in the burden of cost of goods, especially business and this increase was obtained from the contribution percentage increase in other income. (3) For Vertical Analysis of the Balance Sheet shows that in terms of assets, current assets are assets that make up the largest component but also cause considerable investment value embedded in current assets and also showed asset turnover, receivables turnover and working capital is very low under 1 times. (4) For the SHU Vertical analysis shows that income JAYA KOPSUCOFINDO more than 85% absorbed in the Cost of Goods. (5) For liquidity analysis showed that highly liquid KOPSUCOFINDO JAYA obtain an average value above 400%. (6) For solvency analysis shows that the performance is not good / not solvable because the results of the analysis LITA average of above 95%, Total Debt to Equity Ratio in the top 2.000%, and Net Worth Debt Ratio to average below 4%. (7) For activity ratios indicate that the performance is not good for Turnover of Assets value of 1 times. (8) For the rentability analysis KOPSUCOFINDO JAYA show results for ROA of 0.86% (2009), 1.31% (2010), 1.18% (2011), ROE in 2009 is 14.81%, 26.43% in 2010 and 2011 amounted to 31.11%, for the ROI of 0.56% in 2009, in 2010 was 0.96% and by 0.93% in 2011. (9) For the analysis of profitability, for the analysis of GPM in 2009 amounted to 1.49%, in 2010 of 2.31% and 3.92% in 2011. As for the analysis of NPM in 2009 amounted to 0.97%, in 2010 by 1.70% and by 3.10% in 2011. Keywords: Cooperative Financial Performance, horizontal analysis, vertical analysis, Analysis of Liquidity, Solvency Analysis, Activity Analysis, Profitability Analysis, profitability analysis

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The Impact of Supply Chain Management on Financial Performance and Responsibility Accounting Agribusiness Case from Egypt

Accounting and Finance Research ◽

10.5430/afr.v6n2p136 ◽

2017 ◽

Vol 6 (2) ◽

pp. 136 ◽

Cited By ~ 1

Author(s):

Mohamed Ali Wahdan ◽

Mohamed Ashraf Emam

Keyword(s):

Supply Chain ◽

Supply Chain Management ◽

Financial Performance ◽

Financial Statements ◽

Net Income ◽

Chain Management ◽

Research Questions ◽

The Cost ◽

The Impact ◽

Responsibility Accounting

This paper presents the impact of applying the supply chain management (SCM) on the agribusiness field to optimize productivity and decreasing cost which will have a direct impact on the net income of the organization. The main two research questions are: is there a significant impact of supply chain management on financial performance? and is there a significant relationship between supply chain management and financial performance as well as responsibility accounting? To answer the research questions, data was collected from financial statements of agribusiness case from Egypt and the survey was conducted. The findings of the study indicated that there is a significant impact of supply chain management on financial performance through enhancing the productivity, decreasing the cost and improving profitability. Moreover, applying the efficient supply chain management can improve the use of responsibility accounting through the efficient usage for the budget of the crop.

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CRITICAL ANALYSIS OF APPROACHES TO ASSESSING THE IMPACT OF BUSINESS PROCESSES ON THE FINANCIAL PERFORMANCE OF AN ORGANIZATION

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.04.04.036 ◽

2021 ◽

Vol 4 (4) ◽

pp. 201-205

Author(s):

A. L. GENDON ◽

◽

G. F. GOLUBEVA ◽

Keyword(s):

Financial Performance ◽

Critical Analysis ◽

Business Processes ◽

International Standards ◽

Financial Indicators ◽

Life Activity ◽

Cost Of Production ◽

The Cost ◽

The Impact

The article reveals a system of financial indicators that characterize business processes, accounting for income and expenses according to Russian and international standards. The ways of increasing the efficiency of the company's life activity, in particular, the ways of reducing the cost of production, are considered.

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Global financial crisis, ownership structure and firm financial performance

Studies in Economics and Finance ◽

10.1108/sef-09-2016-0223 ◽

2017 ◽

Vol 34 (4) ◽

pp. 447-465 ◽

Cited By ~ 3

Author(s):

Ali Salman Saleh ◽

Enver Halili ◽

Rami Zeitun ◽

Ruhul Salim

Keyword(s):

Financial Crisis ◽

Financial Performance ◽

Ownership Structure ◽

Family Firms ◽

Global Financial Crisis ◽

Ownership Concentration ◽

Financial Leverage ◽

Content Type ◽

Crisis Period ◽

The Global Financial Crisis

Purpose This paper aims to investigate the financial performance of listed firms on the Australian Securities Exchange (ASX) over two sample periods (1998-2007 and 2008-2010) before and during the global financial crisis periods. Design/methodology/approach The generalized method of moments (GMM) has been used to examine the relationship between family ownership and a firm’s performance during the financial crisis period, reflecting on the higher risk exposure associated with capital markets. Findings Applying firm-based measures of financial performance (ROA and ROE), the empirical results show that family firms with ownership concentration performed better than nonfamily firms with dispersed ownership structures. The results also show that ownership concentration has a positive and significant impact on family- and nonfamily-owned firms during the crisis period. In addition, financial leverage had a positive and significant effect on the performance of Australian family-owned firms during both periods. However, if the impact of the crisis by sector is taking into account, the financial leverage only becomes significant for the nonmining family firms during the pre-crisis period. The results also reveal that family businesses are risk-averse business organizations. These findings are consistent with the underlying economic theories. Originality/value This paper contributes to the debate whether the ownership structure affects firms’ financial performance such as ROE and ROA during the global financial crisis by investigating family and nonfamily firms listed on the Australian capital market. It also identifies several influential drivers of financial performance in both normal and crisis periods. Given the paucity of studies in the area of family business, the empirical results of this research provide useful information for researchers, practitioners and investors, who are operating in capital markets for family and nonfamily businesses.

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A Meta-Analysis About the Financial Performance of Family Firms: Another Try

SSRN Electronic Journal ◽

10.2139/ssrn.2540065 ◽

2014 ◽

Author(s):

Dominik Wagner ◽

Jorn H. Block ◽

Danny Miller ◽

Christian Schwens ◽

Guoqian Xi

Keyword(s):

Financial Performance ◽

Family Firms ◽

Meta Analysis

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President interlocking, family firms and performance during turbulent times: Evidence from Latin America

European Journal of Family Business ◽

10.24310/ejfbejfb.v6i2.5019 ◽

2016 ◽

Vol 6 (2) ◽

Author(s):

Karen Watkins-Fassler ◽

Virginia Fernández-Pérez ◽

Lázaro Rodríguez-Ariza

Keyword(s):

Latin America ◽

Financial Performance ◽

Latin American ◽

Family Firms ◽

Annual Data ◽

Minority Shareholders ◽

Return On Assets ◽

Publicly Traded Companies ◽

Turbulent Times ◽

And Performance

n Latin America, company ownership is typically concentrated in the hands of controlling families, who build powerful business groups which facilitate interlocking practices. The purpose of this study is to examine how President interlocking relates with financial performance in Latin American firms, under uncertainty circumstances. Using regression analysis (panel least squares), the association between return on assets and President interlocking during turbulent times is analyzed. For the latter, annual data (2009–2010) from non-financial publicly traded companies in Chile (243 firms) and Mexico (89 firms) is employed. It is documented that President interlocking in Latin American firms is positively associated with financial performance. However, this effect is higher in Chile than in Mexico, where minority shareholders and other stakeholders are better protected against expropriation. This study increases the understanding of the strengths of President interlocks in stormy times, by introducing the Latin American context.

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Association of Ownership and System Affiliation with the Financial Performance of Rehabilitation Hospitals

Health Services Management Research ◽

10.1177/095148489701000103 ◽

1997 ◽

Vol 10 (1-2) ◽

pp. 13-23 ◽

Cited By ~ 4

Author(s):

M. J. McCue ◽

J. M. Thompson

Keyword(s):

Financial Performance ◽

Regression Models ◽

Ancillary Services ◽

Cross Sectional ◽

Non Profit ◽

For Profit ◽

Cross Sectional Design ◽

The Cost ◽

Rehabilitation Hospitals ◽

Inpatient Basis

This study used a cross-sectional design in which regression models were used to test the association of ownership and system affiliation of private rehabilitation hospitals with profit, revenue and expense measures. The study also examined the association of ownership and system affiliation with other choice variables. The study found that new for-profit rehabilitation hospitals had higher revenues and expenses than older non-profit rehabilitation hospitals. In addition, new for-profit hospitals charged more for their ancillary services and treated more of their patients on an inpatient basis. Study findings show higher revenues and expenses per adjusted discharge for new for-profit facilities. Given the cost-based system of reimbursement for Medicare, there appears to be a strong incentive for new for-profits to maximize costs.

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Socioemotional wealth and human resource policies: effects on family firm performance

International Journal of Entrepreneurial Behaviour & Research ◽

10.1108/ijebr-05-2021-0404 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Juan David Peláez-León ◽

Gregorio Sánchez-Marín

Keyword(s):

High Risk ◽

Financial Performance ◽

Human Resource ◽

Family Firms ◽

Equation Modeling ◽

Positive Contribution ◽

Socioemotional Wealth ◽

Content Type ◽

Firm Financial Performance ◽

The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

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