scholarly journals Effect of Default on Profitability in Kenyan Listed Companies

2020 ◽  
Vol 9 (4) ◽  
pp. 01-10
Author(s):  
James N Ndegwa
Keyword(s):  
Regression Analysis ◽  
Financial Institutions ◽  
Listed Companies ◽  
Short Term ◽  
Listed Firms ◽  
Short Notice ◽  
Panel Data Regression ◽  
Data Regression ◽  
Firm Profitability ◽  
The Relationship

The study investigated the whether the default measures of liquidity and solvency are associated and whether default measures are related to firm profitability. A total of 41 firms were selected to be in the study sample out of 46 non-financial listed firms in the Nairobi Securities Exchange during years 2013 to 2017 and panel data regression analysis was employed. The findings revealed that liquidity and solvency are significantly and negatively associated while the default measures lacked a significant relationship with profitability in Kenyan listed companies. The findings implied that there is no need for firms to focus too much on the relationship between default and profitability including invest heavily in liquidity in order to meet short term obligations as nowadays it is possible for firms to either convert non-cash assets quickly or borrow on short notice from financial institutions in case of an urgent need to meet liquidity shortages. These findings are consistent with the shitability theory.

scholarly journals Relationship between CEO pay and total shareholder return: An empirical analysis in the Italian context

2016 ◽  
Vol 13 (4) ◽  
pp. 182-187
Author(s):  
Nicola Cucari ◽  
Mazza Giuseppe ◽  
Martina Costantini ◽  
Giuseppe Sancetta
Keyword(s):  
Regression Analysis ◽  
Ceo Compensation ◽  
Pay For Performance ◽  
Listed Firms ◽  
Panel Data Regression ◽  
Data Regression ◽  
Ceo Pay ◽  
Using Data ◽  
Italian Context ◽  
The Relationship

This study examines the relationship between CEO Pay and total shareholder return, using data between 2008-2014 from Italian listed firms (FTSE MIB). We perform panel data regression analysis of CEO compensation on financial performance, and in this way we refer to research made by Gigliotti (2013), but we extend it considering the Total Shareholder Return instead of accounting based performance. TSR has become a crucial measure in a pay-for-performance approach for different reasons. Our results indicate that there is not a significant relationship between CEO compensation and corporate performance during 2008-2014. These results contribute to our understanding of the pay for performance mechanism in times of financial disturbance, highly relevant to the existing debate considering CEO compensation

Islamic banks’ fee income, characteristics and risk: Panel data analysis evidence from Indonesia

2018 ◽  
Vol 6 (1) ◽  
pp. 6 ◽  
Author(s):  
Siti Sarah Mat Isa ◽  
Masturah Ma’in ◽  
Azlina Hanif
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Operating Income ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Us ◽  
The Relationship

One of the non-operating income in Islamic banking operation, which is fee income has become progressively vital in expanding their income to counter decreasing net earnings due to rivalry from other financial competitors. However, it is important for Islamic banks to find out any potential risk that will distress their performance due to this activity. This is because, mixed results on this issue derived from the previous studies especially in the Western context such as in the US, Germany and other European countries. Using Indonesian Islamic bank’s quarter data between 2009 and 2013, this study adopts the panel data regression analysis to examine the relationship between Indonesian Islamic banks fee income and risk. The empirical results signified that fee income activities able to reduce Indonesian Islamic bank’s risk.  

scholarly journals Nasional Sharia Commercial Bank Transformation Base on Most Dominant Agreement: Sale and Purchase Contract (Murabaha)

2019 ◽  
Vol 1 (1) ◽  
pp. 52-69
Author(s):  
Babun Suharto
Keyword(s):  
Regression Analysis ◽  
Quantitative Analysis ◽  
Commercial Bank ◽  
Financial Institutions ◽  
Annual Report ◽  
Secondary Data ◽  
Profit Sharing ◽  
Analysis Techniques ◽  
Panel Data Regression ◽  
Data Regression

The purpose of this study proved and tested to what extent sharia banks in Indonesia remain consistent in carrying out their role as one of the financial institutions that accordance with shariah compliance. One of the product is channeling financing with profit-sharing systems. To identify these problems, this research adopted associative quantitative analysis and used panel data regression analysis techniques with E-Views 9. Secondary data were obtained from the annual Report the 12 National Sharia Bank from 2015 to 2017 period. This investigation concluded that there was a significant effect of Murabaha contract financing on profitability. However, Istishna, Mudharaba, and Musyaraka contracts have no significant influence on profitability partially. The study result has demonstrated that even though the sharia banks have been running a business in Indonesia for 27 years, up to now they have not optimized the transaction agreement based on profit-loss sharing.

scholarly journals How is Size Related to Profitability? Post-Consolidation Evidence from Selected Banks in Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 30-38 ◽  
Author(s):  
Funso Kolapo ◽  
Lawrence Ajayi ◽  
Olufemi Aluko
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Negative Relationship ◽  
Regression Method ◽  
Return On Assets ◽  
Bank Profitability ◽  
Panel Data Regression ◽  
Data Regression ◽  
Firm Profitability ◽  
The Relationship

It is theoretically believed that increase in firm size would result to increase in firm profitability. Therefore, this study examines the relationship between size and profitability of six banks in Nigeria after the 2005 consolidation exercise. The measure of profitability is return on assets. Employing the static panel data regression method, the study found that size has an insignificant negative relationship with bank profitability. This study concludes that the 2005 consolidation exercise did not enhance the profitability of the selected banks.

scholarly journals Working capital level influence on SME profitability

2016 ◽  
Vol 23 (1) ◽  
pp. 44-63 ◽  
Author(s):  
Godfred Adjapong Afrifa ◽  
Kesseven Padachi
Keyword(s):  
Small And Medium Enterprises ◽  
Working Capital ◽  
Policy Makers ◽  
Content Type ◽  
Cash Conversion Cycle ◽  
Panel Data Regression ◽  
Data Regression ◽  
Firm Profitability ◽  
Medium Enterprises ◽  
The Relationship

Purpose – The purpose of this paper is to report the results of an investigation of the relationship between working capital level, measured by the cash conversion cycle (CCC) and profitability of small and medium enterprises (SMEs). Design/methodology/approach – The paper employs panel data regression analysis on a sample of 160 Alternative Investment Market (AIM)-listed SMEs for the period from 2005 to 2010. Findings – The empirical results show that there is a concave relationship between working capital level and firm profitability and that there is an optimal working capital level at which firms’ profitability is maximised. Furthermore, an examination as to whether or not deviations from the optimal working capital level reduce firm profitability indicate that deviations above or below the optimum decrease profitability. Research limitations/implications – The sample is limited to AIM-listed SMEs, and therefore the findings cannot be generalised to all firms. Practical implications – Overall, the evidence suggests that firms should strive and attain the optimal working capital level in order to maximise their profitability. Originality/value – The results are of importance to both SMEs and policy makers providing insight into the nature of CCC and its relationship to SMEs profitability.

Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Harvinder Singh Mand ◽  
Manjit Singh
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Corporate Sector ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

scholarly journals The double-edged sword of corporatisation in the hospital sector: evidence from Indonesia

2016 ◽  
Vol 12 (1) ◽  
pp. 61-80 ◽  
Author(s):  
Asri Maharani ◽  
Gindo Tampubolon
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Financial Performance ◽  
System Performance ◽  
Hospital Performance ◽  
Public Hospitals ◽  
Health System Performance ◽  
The Past ◽  
Panel Data Regression ◽  
Data Regression

AbstractHoping to improve their health system performance, many countries have corporatised their hospitals in the past 20 years. What this means for hospital performance remains as yet largely unknown. This study looks into the association of corporatisation and hospital performance in Indonesia. We apply panel data regression analysis to survey data on 54 public hospitals in East Java province. Our analysis suggests that corporatisation is associated with higher hospital income and expenditure, but fails to improve efficiency and equity. These findings suggest that hospital corporatisation policy in Indonesia should increase emphasis on efficiency and equity rather than on financial performance alone.

scholarly journals Efeito do Volume de Negócios nas Escolhas de Recomendações de Ações dos Analistas

2018 ◽  
Vol 15 (2) ◽  
pp. 287
Author(s):  
Rafael Moreira Antônio ◽  
Alex Augusto Timm Rathke ◽  
Marcelo Botelho da Costa Moraes ◽  
Marcelo Augusto Ambrozini
Keyword(s):  
Panel Data ◽  
Trading Volume ◽  
Listed Companies ◽  
Net Income ◽  
Trade Volume ◽  
Panel Data Regression ◽  
Data Regression ◽  
Sample Data ◽  
Equity Ratio ◽  
Unbalanced Panel Data

The present study analyses the effect of trade volume on market analysts’ purchase and sell recommendation choices. The research analyses 7,293 consensus recommendations regarding Brazilian listed companies for the period 2008-2014. Sample data includes firms’ fundamentalist characteristics, as total assets, return, net income and dividends, with the objective to identify the factors taken under account by analysts for their recommendation evaluations. Applying unbalanced panel data regression strategy, we find that analysts prefer to recommend shares with higher observed trading volume, and the shares with more favourable evaluations are those with higher observed trading volume, which is agreeing with theoretical expectations. Other significative covariates for recommendations are the earnings before interests and taxes – EBIT, return per share, return of assets – ROA, paid dividends, and the price/equity ratio.

scholarly journals Idiosyncratic Risk and Firm Characteristics on Islamic Stocks of Four Asean Countries 2005–2017

2021 ◽  
Vol 21 (3) ◽  
pp. 1226-1238
Author(s):  
Putri Utami ◽  
Muhammad Budi Prasetyo
Keyword(s):  
Panel Data ◽  
Global Financial Crisis ◽  
The United States ◽  
Idiosyncratic Risk ◽  
Idiosyncratic Volatility ◽  
Firm Characteristics ◽  
Panel Data Regression ◽  
Data Regression ◽  
Asean Countries ◽  
The Relationship

This research investigates idiosyncratic volatility in the Islamic stock of four ASEAN countries, namely Indonesia, Malaysia, Singapore, and Thailand for 2005–2017. The volatility will be analyzed based on the idiosyncratic volatility levels of each country. Furthermore, firm characteristics will be used to determine their relationship to the idiosyncratic volatility movement. This study used the Fama-French Three-Factor model for obtaining the realized value of idiosyncratic volatility. Furthermore, a panel data regression is used to estimate the relationship between firm characteristics and idiosyncratic volatility. The results of this research suggest that mean value of idiosyncratic risk in the Islamic stock of ASEAN countries is below the non-Islamic stock in the United States but above non-Islamic stock in Hong Kong. Meanwhile, after the global financial crisis of 2008, the relationship between return and idiosyncratic risk of Islamic stock changed in all four countries. Panel data regression of firm characteristics shows that firm size is significantly negative in all four countries, while share turnover is insignificant to idiosyncratic volatility.

scholarly journals Ownership structure and firm performance in emerging markets: evidence from Chinese listed firms

2009 ◽  
Vol 6 (3) ◽  
pp. 465-472
Author(s):  
Benjamin Ehikioya ◽  
Yuanjin Qin ◽  
Keifa Xie ◽  
Chen ru Yun
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Negative Influence ◽  
State Ownership ◽  
Legal Person ◽  
Stock Exchanges ◽  
Holding Companies ◽  
Listed Firms ◽  
Panel Data Regression ◽  
Data Regression

This study investigates how ownership structure impacts on the corporate performance of listed firms in China. The study uses sample data of firms listed in the Shanghai and Shenzhen stock exchanges for the five year fiscal period that ended 2005. The results of the panel data regression analysis suggests firm performance to have positive and significant relation with the proportion of shares held by the institution, through the legal person holding companies. In addition, while state ownership indicates negative influence on performance, individual and foreign investors are found to have positive effect on performance, though at a minimal levels. Interestingly, the effect of ownership structure is stronger in firms experiencing the dominance of legal person share holdings over state shares. Further, firm size and ratio of debt to equity are also observed to have influence on the performance of Chinese listed firms. These findings are of great significant to policymakers, academics, shareholders and other stakeholders.

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