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

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.

Working Capital Management and Firm Performance: Evidence from Non-Financial Firms in Pakistan

2019 ◽  
Vol 9 (2) ◽  
pp. 27-37
Author(s):  
Mohsin Siraj ◽  
Muhammad Mubeen ◽  
Salman Sarwat
Keyword(s):  
Inventory Management ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Return On Equity ◽  
Financial Firms ◽  
Asset Growth ◽  
The Impact

This study analyzes the effects of Working Capital management i.e. inventory management, receivable management and payable management, on the performance of the non-financial firms in Pakistan. Panel data of 280 nonfinancial firms enlisted in Pakistan Stock Exchange have been analyzed from 2000 to 2016. Firms’ profitability were proximate with return on assets and return on equity; whereas for growth i.e. sales growth and asset growth were used. The impact of Working Capital management is captured through its constituent policies such as Inventory management, Receivable Management and Payable management. Firm size, liquidity and leverage are used as control variables. Results suggest that Working Capital management has a significant impact on firms’ financial performance in terms of profitability, as well as growth. As far as component wise results are concerned, inventory management does influence the firms’ growth and Payable management significantly, hence affecting the firms’ profitability. However, only receivable management influences both profitability and growth.

scholarly journals The Impact of Working Capital, Return on Assets and Return on Equity on Corporate Income Tax

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Nikke Yusnita Mahardini
Keyword(s):  
Income Tax ◽  
Stock Exchange ◽  
Financial Statements ◽  
Total Sample ◽  
Corporate Income Tax ◽  
Working Capital ◽  
Return On Assets ◽  
Return On Equity ◽  
The Impact ◽  
Capital Return

This study aims to examine the effect of working capital, return on assets, and return on equity on corporate income tax. The population of this study is mining companies and the total sample was involved is thirty-six companies. The data used in the study is in the form of financial statements obtained from the Indonesia Stock Exchange (IDX). The data analysis method used in this study is the multiple regression analysis. Results of the study indicate that working capital significantly influences corporate income tax. Meanwhile, Return on Asset and Return on Equity are not significant to explain the variance of corporate income tax. Simultaneously, working capital, Return on Assets and Return on Equity  as a function of corporate income tax were found significant

scholarly journals Risk management practices and company performance: an empirical evidence from cement sector of Pakistan

2016 ◽  
Vol 13 (2) ◽  
pp. 438-442
Author(s):  
Syed Atif Ali ◽  
HJ Mohd Rasid Hussin
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Company Performance ◽  
Working Capital ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Multiple Regression Technique ◽  
Operating Leverage ◽  
The Impact

The study investigates the impact of risk management on the company performance. Degree of financial leverage (DFL), degree of operating leverage (DOL) and the working capital ratio (WCR) are taken as independent variables which are the representative of risk and the earning price per share (EPS), return on assets (ROA), return on equity (ROE), Sales and Net profits are taken as the representative of performance. Last 10 years (2004-2013) of Cement sector of Pakistan data is chosen as sample for analyze their relations by multiple regression technique. Results reveal that WCR impact adequately on the company performance because if company has enough liquidity than it perform its operations smoothly and enhance its performance very well. DFL should be control moderately because enough DFL leads performance of company downward. On the other hand, the DOL should be less because it causes the less profitability for the company from its operations.

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.

The influence of capital structure on firm profitability in USA and Bangladesh engineering industry

2021 ◽  
pp. 2150029
Author(s):  
Abdelkader Derbali
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Positive Influence ◽  
Engineering Industry ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Real Picture ◽  
The Impact

The aim of this paper is not only to determine and compare the nature of capital structure but also its effect on company performance of engineering industry of USA and Bangladesh. We utilize a panel data methodology based on a sample of 34 listed engineering companies of Bangladesh on Dhaka Stock Exchange (DSE) and a mixture of 34 (small, medium and large) engineering companies listed in NASDAQ in USA during the period of study from 2012 to 2019. Our empirical results indicate that the capital structure of engineering industry of USA and that of Bangladesh is different. Also, we demonstrate that capital structure has negative effect on company profitability of engineering industry of USA. Capital structure presents a negative effect on Earning per Share and Return on Assets (ROA) and positive influence on Return on Equity (ROE) and Tobin’s Q of engineering industry of Bangladesh. We conclude that the impact of capital structure on company’s profitability by only one sector and then compare the findings to know the real picture of the link. Investors, auditors, analysts and practitioners should consider many factors to examine the banking performance. Our results from this study may relate to Asian countries with similarities in engineering industry to that in Bangladesh.

Do Women Directors Impact the Risk and Return of Indian Banks?

2020 ◽  
Vol 10 (1) ◽  
pp. 44-65
Author(s):  
Ankur Shukla ◽  
Narayanasamy Sivasankaran ◽  
Prakash Singh ◽  
Ayyaluswamy Kanagaraj ◽  
Shibashish Chakraborty
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Data Models ◽  
Panel Data Models ◽  
Women Directors ◽  
Return On Assets ◽  
Risk And Return ◽  
Form Part ◽  
Indian Banks ◽  
The Impact

The purpose of the paper is to investigate whether women directors impact the risk and return of Indian banks. This study employs panel data models for a sample of 29 Indian banks that form part of the National Stock Exchange 500 index for the period 2009–2016. This paper concludes that women directors influence the accounting returns (measured through Return on Assets) of Indian banks. However, it was found that women directors did not affect the risks (measured through Equity Beta and gross NPA to Total Assets) of the sample banks. This paper contributes to the literature and practitioners in several ways. To the best of the knowledge of the authors, no study has examined the impact of women directors on the risk and return of banks operating in India. Hence, the findings of this article have substantial implications both to academia and practitioners.

scholarly journals Working Capital Management (WCM) and Firm Performance in Emerging Markets: A Case of Bangladesh

2021 ◽  
Vol 10 (1) ◽  
pp. 36
Author(s):  
Rafiqul Bhuyan ◽  
Mohammad Sogir Hossain Khandoker ◽  
Noshin Tasneem ◽  
Mahjuja Taznin
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Total Asset ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Current Asset ◽  
The Impact

We examine the impact of efficient working capital management on market value and profitability. Using secondary data on selected firms from Dhaka Stock Exchange we explore the effects of various working capital components (i.e. cash conversion cycle (CCC), current ratio (CR), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), debt to asset ratio (DTAR), siz,e and growth) to the firm’s performance by looking firm’s value i.e. Tobin’s Q (TQ) and profitability i.e. return on asset (ROA) and return on invested capital (ROIC). Our results show that, for both food and overall manufacturing sectors, there is a significant association between working capital variables and firm’s value & return on assets, but an insignificant association with return on invested capital.

scholarly journals The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020

2021 ◽  
Vol 6 (6) ◽  
pp. 42-46
Author(s):  
Rano Rahadian ◽  
Dudi Permana
Keyword(s):  
Panel Data ◽  
Commercial Banks ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Financial Reports ◽  
Return On Equity ◽  
Minimum Capital ◽  
The Impact

The purpose of this research is to gain an understanding of The Impact of Non-Performing Loans, Return on Assets, Return on Equity, and Loan to Deposit Ratios on Minimum Capital Adequacy Requirement Based on Commercial Banks for Business Activities (BUKU) I 2015-2020. The data of this research is obtained from financial reports published by each bank in 2015 to 2020 period. This research uses panel data processed using EViews software version 9.0. The results show that NPL negatively and insignificantly affects CAR. ROA gives positive and insignificant impacts toward CAR, while ROE causes negative and insignificant effects on CAR. In addition, there is positive and significant impacts on CAR caused by LDR.

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.

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