Weighted Average Return on Assets - WARA

Zusammenfassung Der Beitrag ist der Bewertung (nicht nur) immaterieller Vermögenswerte mit kapitalwertorientierten Verfahren in der internationalen Rechnungslegung gewidmet. Unter der Annahme, dass das Problem der Zuordnung von Zahlungsüberschüssen zu einzelnen Vermögenswerten bzw. Gruppen von Vermögenswerten (Assets) gelöst ist, wird insbesondere die Wahl des kapitalwertorientierten Bewertungsverfahrens und die Ermittlung der zugehörigen Diskontierungssätze diskutiert. Es werden Empfehlungen zur Abbildung des Investitionsrisikos und der Finanzierung bei der Bewertung von Vermögenswerten unter Berücksichtigung der Marktwertadditivität erarbeitet. Es wird gezeigt, dass der in der Praxis beliebte WACC-Ansatz dafür häufig weniger geeignet ist als der Adjusted-Present-Value (APV) -Ansatz. Dieser sollte soweit es die Datenlage zulässt, Bottom-up ausgefüllt werden. Sofern auf die Daten als vergleichbar eingestufter Unternehmen (Peer Group) zurückgegriffen wird, muss die Vergleichbarkeit im ersten Schritt hinsichtlich des Investitionsrisikos gegeben sein, um so die Eigenkapitalkosten bei Eigenfinanzierung vermögenswertspezifisch zu schätzen. Weitere pragmatische Lösungsansätze, wie Top-down erfolgende Zu- oder Abschläge zum bzw. vom unternehmensweiten WACC oder der sog. WARA (Weighted Average Return on Assets) -Ansatz, werden hinsichtlich der implizierten Fremdkapital- und Wertzuordnungen sowie hinsichtlich der Einhaltung des Marktwertadditivitätsprinzips kritisch gewürdigt.

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Interdependence and Risk Comparison of Slovak, Hungarian and Polish Stock Markets: Policy and Managerial Implications

Acta Oeconomica ◽

10.1556/032.2019.69.2.6 ◽

2019 ◽

Vol 69 (2) ◽

pp. 273-287 ◽

Cited By ~ 1

Author(s):

Florin Aliu ◽

Besnik Krasniqi ◽

Adriana Knapkova ◽

Fisnik Aliu

Keyword(s):

Stock Market ◽

Stock Prices ◽

Stock Markets ◽

Stock Exchange ◽

Weighted Average ◽

Stock Index ◽

Risk Level ◽

Average Return ◽

Monetary System ◽

Managerial Implications

Risk captured through the volatility of stock markets stands as the essential concern for financial investors. The financial crisis of 2008 demonstrated that stock markets are highly integrated. Slovakia, Hungary and Poland went through identical centralist economic arrangement, but nowadays operate under diverse stock markets, monetary system and tax structure. The study aims to measure the risk level of the Slovak Stock Market (SAX index), Budapest Stock Exchange (BUX index) and Poland Stock Market (WIG20 index) based on the portfolio diversification model. Results of the study provide information on the diversification benefits generated when SAX, BUX and WIG20 join their stock markets. The study considers that each stock index represents an independent portfolio. Portfolios are built to stand on the available companies that are listed on each stock index from 2007 till 2017. The results of the study show that BUX generates the lowest risk and highest weighted average return. In contrast, SAX is the riskiest portfolio but generates the lowest weighted average return. The results find that the stock prices of BUX have larger positive correlation than the stock prices of SAX. Moreover, the highest diversification benefits are realized when Portfolio SAX joins Portfolio BUX and the lowest diversification benefits are achieved when SAX joins WIG20.

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Does It Pay to Be Sustainable? Evidence from European Banks

International Journal of Business and Management ◽

10.5539/ijbm.v14n1p128 ◽

2018 ◽

Vol 14 (1) ◽

pp. 128 ◽

Cited By ~ 1

Author(s):

Candida Bussoli ◽

Danilo Conte ◽

Graziana Letorri ◽

Marco Barone

Keyword(s):

Banking Sector ◽

Corporate Social Performance ◽

Social Performance ◽

Return On Assets ◽

Market Capitalization ◽

Average Return ◽

European Banking ◽

Environmental Component ◽

European Banks ◽

Corporate Social

This paper aims to explore the relationship between the economic, environmental, social, and corporate governance component of Corporate Social Performance (CSP) and the Corporate Financial Performance (CFP) in the European banking sector. The empirical analyses, based on panel data, are performed on a sample of 70 listed European banks (EU28) over the period 2011-2015. The main results show a significant and positive relationship between the aggregated CSP measure and the average profitability of banks' assets and market capitalization. Furthermore, the social component positively affects the average return on assets and equity; the economic component is positively associated with the performance of prospective profitability and market capitalization; finally, the environmental component is positively associated with the ROAA. Sustainable banks, in line with the stakeholder Theory, through ethical and social policies, might increase their financial and economic performance.

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Financial performance trends of United States Hockey Inc: a resource-dependency approach

Journal of Economics Finance and Administrative Science ◽

10.1108/jefas-02-2018-0022 ◽

2019 ◽

Vol 24 (48) ◽

pp. 327-344 ◽

Cited By ~ 1

Author(s):

Peter Omondi-Ochieng

Keyword(s):

Financial Performance ◽

Net Income ◽

Return On Assets ◽

Financial Efficiency ◽

Content Type ◽

Non Profit ◽

Average Return ◽

Efficiency Measures ◽

Performance Trends ◽

The Us

Purpose The purpose of this paper is to examine the 2009 to 2016 financial performance of the US Hockey Inc., using financial effectiveness indicators and financial efficiency ratios. Design/methodology/approach With the assistance of financial trend analysis, archival data were used to examine the financial performance (evaluated by net income), financial effectiveness (indicated by total assets and total revenues) and financial efficiency (examined by programme services ratios and return on assets) of US Hockey Inc. Findings On average, the financial performance of the organization was positive ($30,895 net income per year). Financial effectiveness was steady with increases in assets and revenues. Financial efficiency was poor with 79% of revenues spent on programme services and 1.45% average return on asset. Research limitations/implications The results can be generalized to similar national non-profit sports federations but not corporate sports entities with dissimilar financial goals. Practical implications The results revealed that national non-profit sports federations can boost their financial performance by maintaining a double strategically focus on both financial effectiveness and financial efficiency. Originality/value The study used both financial effectiveness and financial efficiency measures to evaluate the financial performances of a national non-profit sports federation – a neglected approach similar studies.

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The Role of Political Collusion in Corporate Performance in the Korean Market

Sustainability ◽

10.3390/su12052031 ◽

2020 ◽

Vol 12 (5) ◽

pp. 2031 ◽

Cited By ~ 1

Author(s):

Daeheon Choi ◽

Chune Young Chung ◽

Soon-Ihl Samuel Hong ◽

Jason Young

Keyword(s):

Firm Performance ◽

Political Connections ◽

Economic Policies ◽

Return On Assets ◽

Structural Problems ◽

Korean Economy ◽

Average Return ◽

Korean Market ◽

Term Data

Many studies investigate collusion between political connections and firm performance, but Korean research on this topic is not very diverse. This study, based on financial data of listed Korean companies spanning the period from the 15th to the 19th Korean governments, analyzes whether political connections between governments and enterprises have a positive, negative, or no correlation with firm performance. The results show that the average return on assets for politically connected firms in the sample tends to be 10% higher than the corresponding value for sample firms that are not politically connected. Since existing studies measure political connections in a fragmented way, this study offers necessary implications for exploring the numerous structural problems of and solutions to the chronic issues currently faced by the Korean economy, as it investigates the economic policies from 1998 to 2018 and their influences on firm performance through the analysis of longer-term data.

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Multifactor productivity analysis in the sample of agricultural enterprises

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201159070395 ◽

2011 ◽

Vol 59 (7) ◽

pp. 395-402

Author(s):

Jaroslav Svoboda ◽

Martina Novotná

Keyword(s):

Common Factor ◽

Weighted Average ◽

Financial Statements ◽

Productivity Analysis ◽

Factor Productivity ◽

Return On Assets ◽

Balance Sheets ◽

Agricultural Enterprises ◽

Economic Profit ◽

Factors Of Production

The assessment of Total Factor Productivity (TFP), i.e. inclusion of all factors of production seems to be an easy task. However, its calculation can meet with some difficulties. The calculation of inputs is complicated as different factors of production, which are processes to outputs, has to be transformed to a common factor. The aim of the paper was to analyse relations of efficiency of factors of production measured by factor productivity based on economic profit and returns (profitability) of enterprise measured by the most synthetic profitability indicator (Return on Assets, ROA). A partial aim was to consider risk analysed through ratio of cost to capital (Weighted Average Cost of Capital – WACC) performed in the sample on agricultural enterprises in 2004–2008. The database used for the research consisted of 622 agricultural enterprises. The methodology of calculation was based on an approach according to Neumaierová and Neumaier (2002) considering the economic profit. This methodology suits well to conditions of Czech financial statements (a balance sheets and a profit and loss statement). The TFP assessment was connected to the return on assets and the correlation analysis revealed dependences of calculated indicators. The paper is a part of the MSM 6007665806 research project.

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Comparing risk for different dairy farm management systems in Taranaki using the Dexcel Whole Farm Model

Proceedings of the New Zealand Grassland Association ◽

10.33584/jnzg.2005.67.2586 ◽

2005 ◽

pp. 103-107

Author(s):

P.C. Beukes ◽

C.C. Palliser ◽

W.E. Prewer ◽

G. Levy ◽

C. Folkers ◽

...

Keyword(s):

Dry Matter ◽

Dairy Farm ◽

High Input ◽

Return On Assets ◽

Price Variability ◽

Input System ◽

Average Return ◽

Farm Model ◽

Conventional Systems ◽

Farm System

The approach was to use the Whole Farm Model (WFM) and Taranaki climate to compare a conventional, twice-a-day milking farm system with variations of once-a-day (OAD) milking and high-input systems. The aim was to compare production, return on assets (ROA) and risk as affected by climate and price variability. Simulations were run over 9 different climate years (1995/1996 - 2003/2004). The high-input system had the highest production (1333 kg milksolids (MS)/ ha) and highest ROA (10.8%), with variability thereof dampened by a feed buffer of higher quantity and quality that existed because of higher pasture yields (15.8 t dry matter (DM)/ha with 200 kg nitrogen (N)/ha vs. 13.5 t DM/ha with 105 kg N/ha for the other two systems), maize silage and grazing-off. The high-input system was followed by the OAD and conventional systems in terms of production (1068 and 975 kg MS/ha respectively) and ROA (9.8% and 9.2% respectively). Both OAD and conventional systems showed risk values nominally lower than high-input, but both these systems were more severely affected by climatic var iability, which lowered the average return and increased the risk relative to the return. Keywords: climate var iability, high input farming, once-a-day milking, return on assets

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ON THE FINANCIAL PERFORMANCE OF PRIVATE ENTERPRISES IN CHINA

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946707000782 ◽

2007 ◽

Vol 12 (04) ◽

pp. 399-414 ◽

Cited By ~ 21

Author(s):

HUNG-GAY FUNG ◽

XIAOQING ELEANOR XU ◽

QI-ZI ZHANG

Keyword(s):

Human Capital ◽

Financial Performance ◽

Equity Capital ◽

Private Enterprises ◽

Chinese Market ◽

Return On Assets ◽

Charitable Contributions ◽

Average Return ◽

Total Capital ◽

Private Entrepreneurs

Using the comprehensive 2000 and 2002 surveys of Chinese entrepreneurs conducted by the National Association of Private Entrepreneurs and the Chinese Academy of Social Sciences, we examine the characteristics and financial performance of private enterprises in China. Entrepreneurs, on average, are 40 years old and many are well-educated; more than one-third of them have a college degree or higher. Their companies are young, with an average age of six to seven years. Entrepreneurs contribute most of the equity capital to the private firms, which in general, are profitable with an average return on assets of 16 percent in 2002 and 11 percent in 2000. Further empirical analysis demonstrates the important impact of social, financing and human capital on firms' financial performance. We find that social capital (measured by charitable contributions), financing capital (measured by the equity-to-total capital ratio), and human capital have significant effects on firm profitability, and younger entrepreneurs tend to be more successful in the new Chinese market economy.

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Analysis of the efficiency of state, private and foreign banks of Ukraine

Journal of Economics and International Relations ◽

10.26565/2310-9513-2020-12-18 ◽

2020 ◽

Keyword(s):

Banking System ◽

Foreign Banks ◽

Return On Assets ◽

Return On Equity ◽

The Public ◽

Average Return ◽

Net Interest Margin ◽

Private Banks ◽

Income Ratio ◽

Interest Margin

In the early 1990s, private capital began to play a significant role in Ukraine's banking system, while the public sector was represented by only two banks: Oschadbank and Ukreximbank. However, after the financial crisis of 2008-2009, the number of state-owned banks increased. As of the end of 2019, there were 75 banks in Ukraine (4 of them - state and 35 - with foreign capital). The subject of the study is the financial performance of public, private and foreign banks in Ukraine. The purpose of this article is to analyze and compare the efficiency of public, private and foreign banks in Ukraine for the period 2014-2019. To achieve the goal of the study, a quantitative approach to the study is used, using analysis of financial ratios such as net interest margin (NIM), average return on equity (ROAE), average return on assets (ROAA) and cost-to-income ratio (CIR). 4 state, 4 largest foreign and 2 private banks (by number of assets) were selected for the study. The study showed that the largest share of net assets in the banking system of Ukraine is occupied by state-owned banks, while the share of foreign banks continued to decline, and the share of private banks was the smallest in the banking system. However, the best indicators of net interest margin (NIM), average return on equity (ROAE), average return on assets (ROAA) and cost-to-income ratio (CIR) in the last 3 years were demonstrated by foreign banks. It should be noted that state-owned banks were able to significantly improve their results compared to 2016 (in particular, this applies to PrivatBank). To increase their efficiency, state-owned banks must get rid of non-performing loans (currently more than 63% of their loan portfolio is considered inefficient (UAH 403 billion)). Also, inviting foreign investors to the capital of state-owned banks can improve the performance of banks and provide significant additional revenues to the budget (from 15 to 40 billion UAH), which can significantly affect their revenue side.

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ANALISIS PENGARUH FINANCING TO DEPOSIT RATIO (FDR) TERHADAP PROFITABILITAS PERBANKANSYARIAH DI INDONESIA (Rasio Keuangan pada BUS dan UUS Periode 2008-2010)

Economica Jurnal Ekonomi Islam ◽

10.21580/economica.2012.2.2.854 ◽

2016 ◽

Vol 2 (2) ◽

pp. 153

Author(s):

Suryani Suryani

Keyword(s):

Regression Analysis ◽

Linear Regression Analysis ◽

Research Data ◽

Islamic Banking ◽

Islamic Banks ◽

Simple Linear Regression ◽

Return On Assets ◽

Financial Ratio ◽

Business Units ◽

Average Return

This study aimed to (1) analyze the condition of Financing to Deposit Ratio (FDR) of Islamic Banking in Indonesia; (2) analyze the profitability of sharia banking in Indonesia; and (3) to analyze the influence of Financing to Deposit Ratio (FDR) of the profitability of sharia banking in Indonesia. This study took samples at Islamic banks in Indonesia including 11 Islamic Banks (BUS), 23 Business Units of Sharia Banking (UUS). The research data is from Islamic Banking Statistics published by Bank Indonesia from January 2008 until December 2010 (Financial Ratio Study to BUS and UUS period 2008-2010). The number of Islamic banks used is 34 banks. The technique uses simple linear regression analysis with the help of the program EVIEWS version 5. The results of analysis is further illustrated as follows: First: Financing to Deposit Ratio (FDR) of sharia banking has an average of 103.65% during the year 2008, 89.70% in 2009 and 94.37% in 2010. Overall, the average Financing to Deposit Ratio (FDR) in the three years is about 98.79%. Second: Return on Asset (ROA) is one of the profitability ratio used to measure the effectiveness of the company in generating profit by leveraging its total asset. Based on the description of the variables, it shows the average Return on Asset (ROA) in 2008 is of 1.77%, 1.98% in 2009 and 1.74% in 2010. This result indicates that the average Return on Asset (ROA) in three years of observation is still above the prevailing bank. Third: The result of regression analysis indicates no significant of Financing to Deposit Ratio (FDR) for Return on Assets (ROA). The quantity t count is 0.475 far below the t table 2.032. The result of study differs from the study of Adi Stiawan (2009), but supports the study of Nurkhosidah Siti (2010) and Yuliani (2007). This study shows no significant effect on bank profitability.

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