scholarly journals Liquidity Management and Banks Financial Performance in Kuwait

2020 ◽  
Vol 4 (3) ◽  
pp. 102-108
Author(s):  
Musaed Sulaiman AlAli
Keyword(s):  
Financial Performance ◽  
Direct Relationship ◽  
Stock Exchange ◽  
Financial Indicators ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Ratio ◽  
Kuwait Stock Exchange ◽  
The Impact ◽  
The Relationship

Bank liquidity plays an important role in determining the bank’s financial performance. This study examines the impact of liquidity on the financial performance of ten Kuwaiti banks, whose shares are listed on the Kuwait Stock Exchange in the period 2010-2018. The article is based on the analysis of return on assets (ROA) and return on equity (ROE) as indicators of the bank’s financial efficiency in comparison with the five liquidity ratios. The results of the study showed a statistically significant direct relationship between ROA and the ratio of loans to total assets, the ratio of loans and deposits and the ratio of the financing deficit to total assets. According to the results of the calculations, a statistically significant inverse relationship between the ROA of liquid assets and the total assets and the ratio of liquid assets and deposits. The determination of return on equity (ROE) showed their statistically significant feedback only on liquid assets and deposits, while a significant direct relationship with the ratio of loans to total assets, the ratio of loans to deposits and the deficit of funding to the total assets. The results of this study provide an explanation of the contradictory results presented in the literature on the impact of liquidity on the financial results of banks. They found that the direction of the relationship depended on which financial ratio was used to explain the relationship (in this study, two ratios showed feedback, while the other three showed a direct ratio). The lack of a universal liquidity ratio will eventually lead to conflicting results. Keywords: liquidity, financial indicators, financial results, Kuwait banks, Kuwait Stock Exchange.

scholarly journals Does CSR Influence Firm Performance Indicators? Evidence from Chinese Pharmaceutical Enterprises

2019 ◽  
Vol 11 (20) ◽  
pp. 5656 ◽  
Author(s):  
Minghui Yang ◽  
Paulo Bento ◽  
Ahsan Akbar
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Financial Indicators ◽  
Social Dimensions ◽  
Return On Assets ◽  
Environmental Aspect ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Corporate Social ◽  
The Impact

This research is carried out in the backdrop of increasing product quality and environmental degradation scandals associated with Chinese Pharmaceuticals in recent years. We examined the data of 125 Chinese Pharmaceuticals between 2010–2016 to investigate the impact of overall corporate social responsibility (CSR) performance as well as the performance on five unique aspects of CSR such as shareholders, employees, customers and suppliers, environmental practices, and the society to gauge the impact of these individual dimensions on the firm’s financial performance. The Hexun rating system is used to gauge a firm’s CSR performance on various stakeholder dimensions as it is one of the widely accepted CSR measurement criteria in China. The firm performance is measured by Tobin’s Q, return on assets (ROA), return on equity (ROE), and earnings per share (EPS) ratios. The outcome of the panel-based regression models reveals that the overall CSR score has a positive and significant influence on a firm’s financial indicators. Moreover, although all the CSR dimensions relate positively to firm performance, the environmental aspect of CSR has the most profound impact on firm performance followed by customers and suppliers, and employees. However, the shareholders and social dimensions have a relatively lesser influence on firm performance. These results imply that Chinese Pharmaceuticals shall further optimize each aspect of CSR performance as it can not only create a favorable brand image for various stakeholders but also results in sustainable financial performance.

scholarly journals IMPACT OF SELECTED DETERMINANTS OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF COMPANIES

2020 ◽  
Vol 14 (2) ◽  
pp. 12-23
Author(s):  
Janka Grofcikova
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Return On Assets ◽  
Return On Equity ◽  
Return On Sales ◽  
The Impact

The role of corporate governance (CG) is to ensure functioning of companies in accordance with their formulated objectives to ensure growth of corporate assets and satisfaction of the owners. In addition to management of the company, there are other stakeholders whose interests need to be considered in meeting the owners' objectives. These include creditors, employees, clients, and the wider context of the business. The aim of this paper is to explore and compare the impact of selected financial and non-financial determinants representing the interests of these groups on corporate financial performance. The influence of determinants of CG on financial performance, measured by return on assets (ROA), return on equity (ROE) and return on sales (ROS) indicators, is investigated by means of correlation analysis. The sample of enterprises used consists of non-financial joint-stock companies listed on the Bratislava Stock Exchange, insurance companies, and banks based in Slovakia. The findings show that each of the investigated determinants of CG affects financial performance of companies. ROA, ROE and ROS of share issuers are significantly influenced by the total equity (EQ), average remuneration (AR) and number of the Board of Supervisor members (BSM). With banks, performance indicators are only influenced by total personal costs (PC). ROA, ROE and ROS of all companies are influenced by the dividend ratio (DR), EQ, AR and BSM.

scholarly journals The Impact of Capital Structure on the Financial Performance of the Jordanian Industrial Companies Listed on the Amman Stock Exchange for the Period 2012-2015

2018 ◽  
Vol 9 (2) ◽  
pp. 369
Author(s):  
Shireen Mahmoud AlAli
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Industrial Companies ◽  
Earnings Per Share ◽  
Amman Stock Exchange ◽  
The Impact ◽  
The Capital Structure

The purpose of this study was to identify the effect of the capital structure as a percentage of total liabilities to total assets on the financial performance of the Jordanian industrial companies listed on the Amman Stock Exchange for the period 2012-2015.The study population included all the Jordanian general industrial companies listed on the Amman Stock Exchange. The sample of the study included 10 industrial companies listed on the Amman Stock Exchange. The linear regression analysis was used to test the relationship between variables using the ordinary least squares method (OLS).The results showed that there is a positive significant impact on the capital structure of the industrial shareholding companies listed in the Amman Stock Exchange as measured by the ratio of equity to total assets, return on equity and return on assets and net earnings per share as an indicator of financial performance.The results also showed a negative significant impact on the capital structure of industrial shareholding companies listed on the Amman Stock Exchange as measured by total liabilities to total assets, return on equity and return on assets as an indicator of financial performance, and net earnings per share as an indicator of the financial performance indicators.

scholarly journals Conducting Business with God: Is God Blessing Islamic Banks with Better Financial Performance than Conventional Banks?

2019 ◽  
Vol 6 (2) ◽  
pp. 40
Author(s):  
Musaed S. Alali
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Stock Exchange ◽  
The Other ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Difference ◽  
Kuwait Stock Exchange ◽  
Conventional Banks

This study aims to compare the financial performance between Islamic and conventional banks listed at Kuwait stock exchange over the period 2011-2018 using the modified DuPont model of financial analysis which is based on the analysis of return on equity (ROE). Unlike previous studies where researchers compared the performance on a bank-to-bank basis, this study examines the aggregate ratios of Islamic banks and compare it to aggregate ratios of conventional banks. The study also adds volatility into the model since consistency in returns indicated a more stable sector.  Results obtained from this study showed that conventional banks in Kuwait had a better mean performance during the study period in terms of both return on assets (ROA) and return in equity (ROE), Islamic banks also showed a higher deviation in these two ratios resulting in a lower Sharpe ratio. While the results showed no statistically significant mean difference between Islamic and conventional banks in terms of return on assets (ROA), the results also showed a statistically significant difference in mean return on equity (ROE) between the two sub-sectors.  On the other hand, Islamic banks showed an impressive improvement in their ratios during the last three years of the study period which impose a real threat to conventional banks in the future.

scholarly journals Effects of Corporate Governance on Capital Structure and Financial Performance: Empirical Evidence from Listed Cement Corporations in Pakistan

2019 ◽  
Vol IV (III) ◽  
pp. 197-205
Author(s):  
Mahboob Ullah ◽  
Nouman Afgan ◽  
Sajjad Ahmad Afridi
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Board Independence ◽  
Regression Analyses ◽  
Return On Assets ◽  
Return On Equity ◽  
Auto Correlation ◽  
The Impact

The key aim of current research is to investigate the influence of CG on financial performance (FP) and capital structure (CS) of cement companies listed on Pakistan Stock Exchange (PSX). To accomplish this purpose, twenty cement firms listed on the PSX was deployed from 2005 to 2014. Auto-correlation and heteroscedasticity were tested and Regression analyses were used to test the hypotheses. SPSS 21 is conducted to perform the analyses.CG is analyzed via board size, board independence, and institutional ownership while, return on assets and return on equity are employed to analyze FP, whereas CS is calculated via debt to equity. The outcomes document that CG positively affects FP, however, negatively impact CS. This research not only contributes to examining the impact and association between CG, FP, and CS but also prove the outcomes of previous studies that have presented a significant influence and association between CG, FP, and CS.

scholarly journals Financial Leverage and Firms’ Performance: Empirical Investigation of KSE-100 Index

ETIKONOMI ◽  
2018 ◽  
Vol 17 (1) ◽  
pp. 45-56 ◽  
Author(s):  
Farhan Ahmed ◽  
Iqra Awais ◽  
Muhammad Kashif
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Optimal Level ◽  
Annual Data ◽  
Financial Leverage ◽  
Return On Assets ◽  
Return On Equity ◽  
Listed Firms ◽  
The Impact

Capital generation to fund everyday operations and long-term expansions is a constant concerning element in the corporate world. This study aims to investigate the optimal level of capital structure that firms can adopt to improve their financial performance given the industry dynamics and economic circumstances of the country. Using Hausman’s specification test, annual data for the period 2005 – 2014 of Karachi Stock Exchange (KSE) 100 index listed securities has been collected to analyze the impact of financial leverage on the firms’ performance. Return on assets, return on Equity, and TOBIN’s Q are the proxies of financial performance analyzed against financial leverage for the KSE 100 index listed firms. The finding of the paper indicates that capital structure, leverage, interest cover and sales growth as most significant variables impacting firms’ profitability.   DOI: 10.15408/etk.v17i1.6102

scholarly journals The Impact of Capital Structure on Jordanian Banks Performance

2021 ◽  
Vol 10 (1) ◽  
pp. 35
Author(s):  
Rania Al Omari
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Return On Investment ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Total Debt ◽  
Amman Stock Exchange ◽  
The Impact

Due to the great importance of the financing structure of banks, the impact of capital structure on the financial performance of banks listed on the Amman Stock Exchange has been examined. To achieve the objectives of this study, we have followed the experimental approach. The study relied on financial variables. The Capital Structure has been measured by the ratios of total debt to total assets and total debt to total equity. Both ratios are independent variables. The dependent variable in this study is the financial performance of banks represented by the ratio of return on assets, the ratio of return on equity, the ratio of return on investment, and the ratio of return on share. The study community and sample consisted of twelve commercial banks listed on Amman Stock Exchange (ASE) during the period (2007-2017). Statistical Package for the Social Sciences (SPSS) software was used in testing of research hypotheses. The most important results are that the capital structure has an impact on return on assets (ROA), while it has no impact on return on equity (ROE), return on investment (ROI) and earnings per share (EPS) in Jordanian commercial banks.

Re-examining Reputation–Performance Liaison in Indian Context

2018 ◽  
Vol 6 (2) ◽  
pp. 100-112 ◽  
Author(s):  
Amanpreet Kaur ◽  
Balwinder Singh
Keyword(s):  
Financial Performance ◽  
Corporate Reputation ◽  
Positive Impact ◽  
Stock Exchange ◽  
Superior Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Corporate Managers ◽  
Asset Turnover ◽  
The Impact

Prolific research examining the impact of a good corporate reputation on financial performance has bestowed equivocal findings. Despite this inclusivity, corporate reputation continues to gain impeccable importance in sustaining superior performance. Corporate reputation has emerged as an important asset in emerging markets such as India, where firms are facing competition at the global level. An endeavor has been made through current study to re-examine the reputation–performance liaison in a different economic setting deploying a different measure of corporate reputation. Panel regression technique has been applied on top 500 Indian companies constituting Bombay Stock Exchange (BSE) 500 index to observe the impact of corporate reputation on subsequent financial performance during the period ranging from April 1, 2002 to March 31, 2012. The findings of the study reveal that past reputation (captured through listing age) has a significant positive impact on all three measures of financial performance (return on assets [ROA], return on equity [ROE], and asset turnover ratio [ATR]). Hence, the results are in line with previous studies that consider reputation as a strategic resource necessary to enhance firm performance. The study bears significant implications for corporate managers that they should manage the reputation of their organization effectively and use it as a strategic tool to gain competitive advantage.

scholarly journals The factors affect financial performance of companies listed on Hanoi stock exchange

2020 ◽  
Vol 4 (3) ◽  
pp. First
Author(s):  
Hồ Xuân Thủy ◽  
Đinh Lê Minh Hiếu ◽  
Dzoãn Khoa Danh ◽  
Phạm Phú Thành Đạt ◽  
Nguyễn Hồng Ngọc ◽  
...  
Keyword(s):  
Financial Performance ◽  
Income Tax ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Corporate Income Tax ◽  
Firm Age ◽  
Return On Assets ◽  
Business Entities ◽  
The Impact ◽  
The Relationship

Profit maximization is an important goal of any business entities, lead to big concern about how to improve financial performance so as to run businesses in a stability and sustainability. Furthermore, in measuring financial performance, several profitability indicators are widely in use as return on assets (ROA), return on equity (ROE)... We did conduct literature reviews and conclude: evaluating the impact of factors on entity financial performance is such an essential topic which has drawn the attention of researchers all over the world and yet Vietnam. However, many studies gave dissimilar results, which indicates there might be differences in nature of the relationship, or factors affiliation in enterprises of different sectors or different countries. This study aims to determine the effect of factors on the financial performance of companies listed on the Hanoi Stock Exchange (HNX) from 2013-2017. The factors include corporate income tax, firms’size, growth of the firm, age of the firm and liquidity. The study used panel data methodology, the FEM model was found to be consistent with data. In this study, variables of return on assets (ROA) used to measure the financial performance of companies. The research revealed that corporate income tax, firms’size and growth of the firm show a significant negative relationship with financial performance. On the other hand, there is a significant positive relationship between liquidity and financial performance. But, the relationship between ROA with the firm age is not significant. Firms’ size and corporate income tax have the greatest influence on financial of companies. The findings of the study will improve the financial performance of companies listed on the HNX.

scholarly journals Impact of Dividend Policy on Financial Performance - A Study

2020 ◽  
Vol 4 (1) ◽  
pp. 37-47
Author(s):  
Pradip Kumar Das
Keyword(s):  
Financial Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Strong Association ◽  
Panel Regression ◽  
Return On Assets ◽  
Return On Equity ◽  
Dividend Payments ◽  
Price Earnings Ratio ◽  
The Impact

This study is an attempt to evaluate the impact of dividend policy on financial performance of selected companies registered in Bombay Stock Exchange. The study based on correlation matrix and panel regression model shows that the selected companies do not follow consistent pattern of dividend payments and the association between price earnings ratio and dividend payout ratio is low positive. However, there is strong association between return on assets and return on equity. Hausman Test reveals that random affect model is appropriate thereby indicating that performance of selected companies have momentous impact on dividend policy. Divided policy is still contemplated as one of the complicated areas in corporate finance. The findings from this study are worthwhile to be welcomed into account by the board of managers of companies to demonstrate dividend policy for the companies.

Sign in / Sign up

Export Citation Format

Share Document