Sustainability Reporting and Financial Performance of Deposit Money Banks in Nigeria

This study examines how sustainability reporting is useful for assessing the financial performance of listed Deposit Money Banks in Nigeria. Specifically, the study focuses on the economic, environmental and social dimensions of sustainability reporting using “Return on Assets”, “Return on Equity” and “Earnings per Share” as proxies for financial performance of Deposit Money Banks in Nigeria from 2012 to 2018. The sample of the study was restricted to seventeen deposit money banks out of twenty one Banks quoted on the Nigerian Stock Exchange as at December, 2018. The required data were collected from audited annual financial statements and “sustainability reports” of the selected Deposit Money Banks for the period. A detailed analysis of the three bottom lines of profit (economic), people (social) and planet (environmental) impact was conducted. The descriptive and least squares regression analysis were adopted for the study considering the banks’ sustainability reporting practices against the selected performance proxies. The study concludes that sustainability reporting practices of Banks in Nigeria have substantial impacts on the financial performances of Deposit Money Banks in Nigeria. The study recommends that enabling legislations should be put in place to mandate enhanced sustainability practices among all deposit money banks in Nigeria as well as facilitate meaningful evaluation and measurement of earnings, social and environmental impacts in all areas of bank operations in Nigeria.

Download Full-text

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

Sustainability ◽

10.3390/su11205656 ◽

2019 ◽

Vol 11 (20) ◽

pp. 5656 ◽

Cited By ~ 8

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.

Download Full-text

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

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v9i2.12076 ◽

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.

Download Full-text

INTELLECTUAL CAPITAL DAN KINERJA KEUANGAN PERUSAHAAN MANUFAKTUR HIGH IC INTENSIVE

Benefit Jurnal Manajemen dan Bisnis ◽

10.23917/benefit.v1i1.2367 ◽

2016 ◽

Vol 1 (1) ◽

pp. 70

Author(s):

Sigit Hermawan ◽

Ummy Imaniar Mardiyanti

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Stock Exchange ◽

Simple Linear Regression ◽

Return On Assets ◽

Return On Equity ◽

Firm Financial Performance ◽

Earnings Per Share ◽

Analysis Technique ◽

Research Period

This study aims to examine and analyse the effect of intellectual capital on firm financial performance (ROA, ROE, EPS). The company studied is the manufacturing High IC Intensive companies listed in Indonesia Stock Exchange. sample obtained with as many as 76 companies with research period is 2010-2013. Independent variables used are the intellectual capital measured using VAICTM, while the dependent variable is Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS). The data analysis technique used is a simple linear regression. The results showed that the Intellectual Capital (VAIC) effect the company's financial performance Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS).

Download Full-text

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

JURNAL ILMIAH EDUNOMIKA ◽

10.29040/jie.v5i1.1879 ◽

2021 ◽

Vol 5 (1) ◽

Author(s):

Susi Lusiana

Keyword(s):

Data Collection ◽

Stock Returns ◽

Stock Return ◽

Stock Exchange ◽

Financial Statements ◽

Financial Ratios ◽

Manufacturing Companies ◽

Current Ratio ◽

Return On Equity ◽

Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

Download Full-text

MENINGKATKAN KINERJA KEUANGAN RETURN ON EQUITY (ROE) MELALUI RASIO STRUKTUR MODAL DEBT TO ASSET RATIO (DAR) DAN DEBT TO EQUITY RATIO (DER) PADA PT BANK MANDIRI TBK YANG TERDAFTAR DI BURSA EFEK INDONESIA

Riset Manajemen dan Akuntansi ◽

10.36600/rma.v12i1.155 ◽

2021 ◽

Vol 12 (1) ◽

pp. 52-65

Author(s):

Armalinda Armalinda

Keyword(s):

Financial Performance ◽

Quantitative Research ◽

Time Series Data ◽

Stock Exchange ◽

Statistical Tests ◽

Financial Statements ◽

Coefficient Of Determination ◽

Series Data ◽

Return On Equity ◽

Equity Ratio

This study aims to determine how much influence the Debt to Assets Ratio (DAR) and Debt to Equity Ratio (DER) have on the Return on Equity (ROE) of PT Bank Mandiri Tbk which are listed on the Indonesia Stock Exchange. The research design used in this research is associative/quantitative research. The population in this study is the annual financial statements of PT. Bank Mandiri Tbk for the period 2012-2019, while the sample was taken using time series data, namely the annual financial statements of PT. Bank Mandiri Tbk for the period 2012-2019 which consists of balance statements, income statements, and cash flow from funding activities from 2012 to 2019. The result of the coefficient of determination (R Square) is 0.813. This figure means that 0.813 or 81.3% of the diversity of data from financial performance data can be explained by the two independent variables, namely the Debt to Asset Ratio and the Debt to Equity Ratio. While the rest (1-0.813 = 0.817) or 18.7% is explained by other factors outside the study. The results of statistical tests show that the Asset Ratio and Debt to Equity Ratio together (simultaneously) have an effect on financial performance (Return on Equity).

Download Full-text

Can Capital Structure Affect the Financial Performance of Banks in Turkey?

Finance and Market ◽

10.18686/fm.v0.1103 ◽

2018 ◽

Author(s):

Merve Tuncay

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Capital Adequacy ◽

Return On Assets ◽

Control Variables ◽

Return On Equity ◽

Independent Variables ◽

Earnings Per Share ◽

Asset Quality ◽

The Capital Structure

The aim of this study is to investigate the determinants of banks’ financial performance in terms of the capital structure. Annual financial statements of 11 banks traded in Borsa Istanbul are employed for the period of 2006-2016. Return on assets, return on equity and earnings per share are chosen for financial performance measures. The independent variables related to the capital structure are capital adequacy, equity-to-asset, and financial leverage ratios. In addition, macroeconomic variables and bank-specific variables are also considered as control variables for the analysis. The data are analyzed by the panel data regression analysis as it provides more informative finding and less multicollinearity among variables than time series and cross-sectional analyzes.The Hausman test results indicate that the random effects model is appropriate for the whole dependent variables. According to the findings; while equity-to-asset ratio affects return on assets positively, amongst the control variables specific to firms, firm size, asset quality and asset growth variables have significant effects on return on assets. It is found no significant effect of independent variables on return on equity, however, it is seen that asset quality has a negative and significant effect. Inflation and interest rates have a significant effect on both variables. Finally, it is seen that equity-to-asset ratio has a positive and significant effect on earnings per share. Only the effect of asset quality on earnings per share is found to be significant among the control variables. Findings of the study are consistent with the previous studies. In addition, the M&M views are not supported by the findings related to return on assets and earnings per share but the return on equity.

Download Full-text

Pengaruh Penerbitan Sukuk Ijarah Terhadap Return On Assets, Return On Equity dan Earning Per Share Emiten di Bursa Efek Indonesia Tahun 2009-2013

Jurnal Ekonomi Syariah Teori dan Terapan ◽

10.20473/vol2iss20156pp459-472 ◽

2015 ◽

Vol 2 (6) ◽

pp. 459

Author(s):

Rianda Ajeng Ardiyanti Putri ◽

Leo Herlambang

Keyword(s):

Regression Analysis ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Simple Linear Regression ◽

Return On Assets ◽

Return On Equity ◽

Earnings Per Share ◽

Analysis Technique ◽

Equity Ratio ◽

Independent Variable

Sukuk in Indonesia is growing rapidly with marked Corporate Sukuk issuance reached 65 Sukuk. Within this development also trigger the issuance of Ijarah Sukuk more in demand by the issuer as it is considered more prospective than the Mudharabah Sukuk.This study aimed to determine the issuance effect of Ijarah Sukuk on the financial performance issuer in the Indonesia Stock Exchange in 2009 to 2013. The independent variable in this study is Sukuk to Equity Ratio and the dependent variable in this study are Return on Assets, Return on Equity and Earnings per Share. The analysis technique used is a simple linear regression analysis OLS with 95% of confidence level.The results of this study show that Sukuk to Equity Ratio has significant effect on Return on Assets, but Sukuk to Equity Ratio has not significant effect on Return on Equity and Earnings per Share.

Download Full-text

Analisis Modal Intelektual Dan Kinerja Keuangan Serta Pengaruhnya Terhadap Nilai Perusahaan

10.31227/osf.io/j5e9u ◽

2019 ◽

Author(s):

Riski Wahyudi ◽

Lidya Martha

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Firm Value ◽

Stock Exchange ◽

Value Added ◽

Financial Statements ◽

Manufacturing Companies ◽

Return On Assets ◽

Book Value ◽

Company Value

This study aims to examine the effect of intellectual capital and financial performance on the value of companies in manufacturing companies listed on the Indonesia Stock Exchange (IDX). The research population is all manufacturing companies listed on the Indonesia Stock Exchange for the period 2013 - 2017. This sample was selected using a purposive sampling method with sample criteria. Manufacturing is listed on the IDX during the end of 2017 period, Manufacturing is listed consecutively during the period 2013 - 2017, Manufacturing that uses Rupiah, Manufacturing that has complete financial statements for the period 2013 - 2017, Manufacturing that has financial data in accordance with the variables to be tested, namely Price to Book Value, Value Added Intellectual Coefficient, Return On Assets, and Manufacturing that does not has data outliers, and obtained a sample of 11 companies. The data source is the annual financial statements of manufacturing companies taken through the official website of the Indonesia Stock Exchange ( www.idx.co.id ). Testing uses panel data regression analysis with the Eviews Program tool. Intellectual capital is measured using Value Added Intellectual Coefficient (VAIC), while financial performance is measured by Return on Assets (ROA) and company value measured by Price to Book Value (PBV). The results showed that the variable intellectual capital had a negative and not significant effect on firm value, while financial performance had a positive and significant effect on firm value.

Download Full-text

Analyzing the cash conversion cycle relationship with the financial performance of chemical firms: Evidence from Amman Stock Exchange

Accounting ◽

10.5267/j.ac.2021.4.004 ◽

2021 ◽

Vol 7 (6) ◽

pp. 1339-1346

Author(s):

Mohammed Ibrahim Sultan Obeidat ◽

Tareq Mohammad Almomani ◽

Mohammad Abdullah Almomani

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Percent Level ◽

Study Data ◽

Return On Equity ◽

Cash Conversion Cycle ◽

Earnings Per Share ◽

Amman Stock Exchange ◽

Mean And Variance ◽

Single Regression

The main purpose of the study is to investigate whether the cash conversion cycle has an impact on the financial performance of listed chemical firms in Amman Stock Exchange. To achieve the objectives of the study, data covering the period 2010-2019 of 5 among a total of 6 listed chemical firms were collected and used in analysis and hypotheses testing. The excluded firm was eliminated because its information was incomplete along the study period. Return on equity and earnings per share were used as indicators for financial performance in a separate form. The study involved two hypotheses, and both hypotheses were tested under the 95 percent level of confidence. Descriptive statistics including the mean and variance, in addition to correlation, were used in data analysis. Using both of the multiple and single regression models, the study showed that the cash conversion cycle had a significant impact on the financial performance of firms. Moreover, both of the controls were found significantly affecting the financial performance.

Download Full-text

The Effect of Sustainibility Reporting Disclosure and Its Impact on Companies Financial Performance

Journal of Wetlands Environmental Management ◽

10.20527/jwem.v7i1.188 ◽

2019 ◽

Vol 7 (1) ◽

pp. 67

Author(s):

Enny Hardi ◽

Chairina Chairina

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Social Performance ◽

Sustainability Reporting ◽

Social Dimension ◽

Global Reporting Initiative ◽

Organization Performance ◽

Company Performance ◽

Return On Assets ◽

Economic Dimension

The purpose of this research was to examine empirically the effect of sustainability reporting disclosure on company performance. Sustainability reporting is a report that measures, discloses and shows the responsibility of the company to internal and external parties as an accountability form of organization performance in order to gain continuous development purpose. Sustainability reporting becomes trend and need for companies to disclose economic, environmental, and social performance to stakeholders. Samples used as many as 40 observations were derived from companies that consistently become ISRA (Indonesia Sustainability Reporting Award) nomination and listed in Indonesia Stock Exchange (BEI) during 2016-2017. Sustainability reporting measured by GRI (Global Reporting Initiative) continuous reporting guideline-G4 with 91 indicator items and financial performance measured by Return on Assets (ROA). The analysis method used was Multiple Linear Regression. The results of the research show that Economic Dimension Disclosure (EC) in sustainability reporting has effect on financial performance. Whereas, Environmental Dimension (EN) and Social Dimension (SO) have no effects. The condition indicates that sustainability reporting in short term has not been able to affect companies financial performance.

Download Full-text