scholarly journals BUSINESS RISK, FINANCIAL RISK AND FIRM PERFORMANCE AN EMPIRICAL STUDY OF INDONESIAN MANUFACTURING SECTOR

2020 ◽  
Vol 29 (1) ◽  
pp. 64
Author(s):  
Utami Prasetiawati
Keyword(s):  
Firm Performance ◽  
Financial Risk ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Future Research ◽  
Statistical Tool ◽  
Return On Equity ◽  
Stock Market Investors ◽  
The Impact

Introduction: This paper empirically examines the impact of degree of operating leverage (DOL) and degree of financial leverage (DFL) to firm performance by using size as control variable. Firm performances used are return on equity (ROE) and market to book ratio (MTB).Methods: Statistical tool used is pooled regression while sample used is all Indonesian manufacturing firms listed in Indonesia Stock Exchange from 2009-2013.Results: The findings revealed that high fixed asset firms pose higher DOL compared to those of lower ones; and highly financial leveraged firms pose significantly higher DFL compared to those of lower financial leveraged ones. Further, both DOL and DFL impacting ROE in negative manner but only DOL is statistically significant, while all variables (DOL, DFL and Size) impacting MTB in negative manner but only size is statistically significant.Conclusion and suggestion: The finding shows that Indonesian stock market investors do not regard risks as important elements in making investment decisions. The findings, however, pose a quite low R squared value of 1.39% for ROE and 2.4% for MTB. This means only those percentage of ROE and MTB can be explained from the variables used in this research. Thus, the author encourge more variables should be included in the future research, including macro economic variables, as it is one of the key component in firm performance.

Essays in corporate finance

2016 ◽  
Author(s):  
◽  
Christine Ferris
Keyword(s):  
Firm Performance ◽  
Ceo Compensation ◽  
Control Variable ◽  
Future Research ◽  
New Classification ◽  
University Of Missouri ◽  
The University ◽  
The Impact ◽  
Shed Light

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] [1] NEW CLASSIFICATIONS FOR CHAIRMEN OF THE BOARD -- I DID IT MY WAY. In this paper I determine whether a new classification of chairmen (former CEOs) should be added to the traditional current CEO and independent categories. I examine the impact the three categories of chairmen have on firm performance and whether CEO compensation differs between the three categories. If firms with chairmen who are former CEOs have significantly different firm performance or CEO compensation than the other two groups, a third category of chairmen (former CEOs) should be used in future research. The findings shed light on the value of having former CEOs control the board, and should influence the results of studies using chairmen as a control variable. I find that chairmen who are former CEOs are significantly different than current CEOs and independent chairman, and should be separated into their own category. Firms with chairmen who are former CEOs have highest firm performance. These firms also pay less in CEO compensation than firms with current CEOs/chairmen but more than firms with independent chairmen. [2] A TEMP IN THE CORNER OFFICE : THE IMPACT OF INTERIM CEOS ON FIRM PERFORMANCE. This paper examines the impact an interim CEO's previous experience and tenure length have on accounting- and market-based firm performance. I also examine the number of significant changes an interim CEO makes to the firm and the impact of those changes. I find that the prior experience an interim CEO has does not have a significant impact on firm performance. Interim CEOs are significantly less likely to make major changes to the firm than their predecessors; however, some of the changes they make have a significant impact on firm performance.

scholarly journals Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen Perusahaan Manufaktur Yang Terdaftar Di BEI

2021 ◽  
Vol 26 (3) ◽  
pp. 345
Author(s):  
Haura R. T. Effendi, Ferina A. Latiefa, H. S. Lestari
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Dividend Yield ◽  
Government Ownership ◽  
Panel Data Regression ◽  
The Impact

The purpose of this research is to conclude the impact of ownership structure on dividend yield. The sample in this study are companies from the manufacturing sector listed on Indonesia Stock Exchange in 2016-2020. The sampling technique used in this study is purposive sampling and the analysis method is panel data regression. The independent variables in this study are institutional ownership, foreign ownership and government ownership, and the control variable is profitability, with the dividend yield as the dependent variable. The results show that foreign ownership and profitability have a positive effect on dividend yield, while institutional ownership and government ownership have no effect on dividend yield. This study is expected to give implication for company managers. by paying attention to the amount of profit earned so that shareholders get dividend yield, and also expected to be a source of information for potential investors to see the level of profit and dividend yield given by the company to shareholders.

scholarly journals The Impact of board characteristics on Firm Performance: Evidence from Nonfinancial Listed Companies in Kuwaiti Stock Exchange

2012 ◽  
Vol 2 (2) ◽  
pp. 310 ◽  
Author(s):  
Ebrahim Mohammed Al-Matari ◽  
Abdullah Kaid Al-Swidi ◽  
Faudziah Hanim Fadzil ◽  
Yahya Ali Al-Matari
Keyword(s):  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Discussion Section ◽  
Ceo Duality ◽  
Board Characteristics ◽  
Positive Effects ◽  
The Impact

The core aim of this study is to examine the relationship between board characteristics and the firm performance of non-financial listed Kuwaiti firms. To achieve the objectives of the study, the data were collected from a sample of 136 companies for the financial year 2009. Variables such as CEO duality, COE tenure, audit committee size, board size and board composition were considered as predictors of the firm performance that was measured employing the return on assets (ROA). By contrast, the effects of CEO tenure and leverage on firm performance were found to be negative and significant at the chosen level of significance. To test the hypotheses of the study, multiple linear regression analysis using SPSS 18.0 was utilized. Using the firm size and leverage as a control variable, the findings of the study support the positive effects of CEO duality and audit committee size on ROA. Other findings of the study were discussed in the discussion section and some other future study directions were provided.

scholarly journals The Impact of Dividend Policy on Firm Performance under High or Low Leverage; Evidence from Pakistan

2015 ◽  
Vol 2 (4) ◽  
pp. 16-25 ◽  
Author(s):  
Adnan Ali ◽  
Farzand Ali Jan ◽  
Maryam Atta
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Control Variable ◽  
Balance Sheet ◽  
Secondary Data ◽  
Financial Sector ◽  
Lagrangian Multiplier ◽  
Dividend Payout ◽  
The Impact

This study aims to find out the impact of dividend policy on firm performance under high or low debt for all the non-financial sector companies listed on Karachi Stock Exchange. This study has utilized the secondary data published by State Bank of Pakistan in the shape of Balance Sheet Analysis of non-financial sector for the period of 2006 to 2001 with the sample size consisting of 122 companies. Panel data models have been applied to examine the impact of dividend policy on firm performance in the presence of high or low leverage. Mainly it has focused on using two performance measures i.e. Tobin’s Q and Return on Equity both as dependent variables while the control variable includes the firm size and growth with debt as the moderating variable. Breusch and Pagan Lagrangian multiplier test for random effects suggested that OLS is better than fixed effect. It is found that the dividend payout ratio has got significant positive relationship with Tobin’s Q and ROA when there is both less and high debt. In addition, there is no moderating effect of debt on the relationship between dividend payout ratio and firm performance of all the non-financial firms listed in KSE.

scholarly journals The effect of government ownership on Indonesia’s state-owned enterprises’ (SOE) firm performance

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1347-1352 ◽  
Author(s):  
Reynaldi Hermansjah ◽  
Sugiarto Sugiarto ◽  
Gracia Shinta S. Ugut ◽  
Edison Hulu
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Stock Exchange ◽  
Panel Data Models ◽  
Government Ownership ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Relationships ◽  
Equity Ratio ◽  
The Impact

This study aimed to analyze the impact of government ownership on Indonesia’s SOE’s financial performance, measured by Return on Assets (ROA) and Return on Equity (ROE) of 20 SOEs that are listed on the Indonesia Stock Exchange during the period 2013 – 2019, using the panel data models. According to the results, government ownership has a positively significant impact on the firm performance (ROA and ROE). Furthermore, the results show that along with government shares, debt to equity ratio, dividend payout ratio, and log of total assets also have significant relationships to the firm performance.

scholarly journals The impact of working capital policy on risk management in the companies listed in Tehran Stock Exchange

2016 ◽  
Vol 14 (3) ◽  
pp. 364-371 ◽  
Author(s):  
Samaneh Rezazadeh Sefideh ◽  
Mohammad Reza Asgari
Keyword(s):  
Risk Management ◽  
Panel Data ◽  
Return On Investment ◽  
Financial Risk ◽  
Stock Exchange ◽  
Operational Risk ◽  
Working Capital ◽  
Return On Assets ◽  
Return On Equity ◽  
The Impact

Today, the management of resources and current expenditures, working capital management is to maximize shareholder wealth as part of the task of financial management is particularly important. Administrators can choose different strategies affect the company’s liquidity. I.e., in current assets can be conservative or aggressive strategy to secure and in current liabilities can be either conservative or aggressive strategy selected. Risk management is the process that tries the risk of providing investors with regard to their expected returns and put it in the right direction. It should also be noted that risk and return are two integral part of the decision making and risks should always be considered with regard to efficiency. The purpose of this study is to evaluate the impact of working capital policy on risk management companies. This study is based on analysis of literature and analytical Ali panel data (panel data) is. In this study, the financial data of 110 companies listed in Tehran Stock Exchange during the period 2007 to 2012 were reviewed (660 firm – years). To analyze the results of the study program 20 Spss, 7 Eviews and 16 Minitab is used. The results confirm the hypotheses associated with the sub 1-1, 2-1, 3-1 and 4-1, respectively, show that Among the four criteria of profitability and working capital policy, return on assets, return on equity, return on investment and Tobin’s q and there is a direct relationship. The results confirm the hypotheses associated with sub 1.2 and 2.2, respectively, indicating that the between policy and operational risk and financial risk, working capital and an inverse relationship exists. Keywords: policy, working capital, return on assets, return on equity, Tobin’s q, return on investment, operational risk, financial risk, and panel data. JEL Classification: G30, G32

Impact of Corporate Governance on the Cash Holding of the Firms: An Empirical Study of Indian Manufacturing Sector

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 47-52
Author(s):  
Karam Pal Narwal ◽  
Sonia Jindal
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Cash Holding ◽  
Executive Directors ◽  
Control Effect ◽  
Board Size ◽  
Indian Manufacturing Sector ◽  
The Impact

The paper empirically examines the impact of corporate governance on the cash holding of the firms. The components of corporate governance are measured by board size, board meeting, audit committee members, directors remuneration and non executive directors and the cash holding is measured with the log of average cash and size is taken as control variable for the control effect on the dependent variables. Moreover, correlation and panel regression model were employed to examine the relationship between the corporate governance and cash holding. Empirical data was collected from 96 firms over the period of 2004-05 to 2013-14. The results show that directors remuneration and the number of audit committee members positively influence the cash holding and the board size also positively influences the cash holding whereas, the non executive directors and the board meetings do not play any role in enhancing the cash holding.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

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