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 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

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.

Impact of Research and Development on Firm Performance

2014 ◽  
Vol 4 (1) ◽  
pp. 357 ◽  
Author(s):  
Aimen Ghaffar ◽  
Waseem Ahmed Khan
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Return On Assets ◽  
Return On Equity ◽  
Positive Correlation ◽  
Important Concept ◽  
Independent Variables ◽  
Earnings Per Share ◽  
The Impact ◽  
The Relationship

This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their performance.

scholarly journals Kinerja Keuangan Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Ditinjau Dari Rasio Keuangan (Studi Pada Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun2015-2018)

2020 ◽  
Vol 5 (2) ◽  
pp. 200-210
Author(s):  
Arif Budhiyanto ◽  
Fifi Swandari ◽  
Sufi Jikrillah
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Activity Ratio ◽  
Working Capital ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Report ◽  
Fixed Assets ◽  
Asset Turnover ◽  
The Impact

Abstract The aim of this research is to examine and analyse the impact of activity ratio with fixed assets turnover, total assets turnover, and working capital turnover on profitability ratio with return on assets and return on equity as the measurement standart. The objects of this research were Food and Beverages Industries listed at BEI in 2015-2018 period. According to the above objectives, six hypotheses have been formulated. The samples in this research were taken by “sampling jenuh” method using certain criteria to be fulfilled. This research used 16 samples, which one of them did not fulfill the criteria, two of them have negatif financial report and three of them have not continue published financial report. To solve the problem, this research used multiple regression analysis processed by SPSS 16.0. The result of the research showed that fixed assets turnover, total assets turnover and working capital turnover had impacts on return on assets in the first equation. In the second equation fixed assets turnover and working capital turnover had impact on return on equity. Meanwhile, total asset turnover did not have impact on return on equity in second equation.   Keywords: Fixed assets turnover, Total assets turnover, Working capital turnover Return on assets, Return on equity

scholarly journals CAPITAL STRUCTURE AND BANK PERFORMANCE OF ISLAMIC AND COMMERCIAL IN YEMEN

2021 ◽  
Vol 9 (12) ◽  
pp. 39-49
Author(s):  
Samer Ahmed Ali Assirri ◽  
C.K. Hebbar
Keyword(s):  
Capital Structure ◽  
Banking Sector ◽  
Positive Impact ◽  
Bank Performance ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Total Debt ◽  
The Impact

This study aims to examine the impact of capital structure on bank performance. This research verified the existence of several relationships between capital structure as measured by LAR, EAR, and Total Debt ratio on bank’s performance as measured by ROA and ROE, EPS, and NPM. Using the panel data of bank from 2010 to 2019, In Islamic banks , the results of the present study revealed that the contributions of the capital structure to ROA were significant. This result was in line with the findings of the past studies. For instance, El-Chaarani and El-Abiad (2019) found that positive and significant impacts of short-term debt and total debt on the return on equity of the banking sector in Middle East region, a negative and significant impacts of short-term debt and total debt on the return on assets, and a positive impact of long-term debt on the return on assets ratio. In commercial banks sector the regression analysis revealed that the contributions of the three independent variables to the EPS were non-significant. Also, the contributions of the total debt and LAR to the independent variables ROE were significant. In contrast, the contribution of the EAR to the independent variable ROE was non-significant. Moreover, the contribution of the LAR to NPM was significant. Also, the contributions of the EAR and the total debt to NPM were non-significant. Furthermore, the contributions of the LAR and EAR to ROA were significant. In contrast, the contribution of the total debt to ROA was non-significant. In general, the contributions of the LAR and EAR to ROA were significant.

scholarly journals Pengaruh Biaya, Produktivitas Aktiva dan Struktur Modal dalam Meningkatkan Profitabilitas Perusahaan

2010 ◽  
Vol 1 (2) ◽  
pp. 496
Author(s):  
Muhammad Yusuf
Keyword(s):  
Capital Structure ◽  
Positive Outcome ◽  
Total Asset ◽  
Working Capital ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Results ◽  
Operating Margin ◽  
Asset Turnover ◽  
Operating Leverage

This study examined the effect of cost, productivity of assets and capital structure of an automotive company's profitability. This study focuses on the productivity of assets which include factors such as operating leverage, sales, inventory turnover, net working capital, liquidity, receivable collection, fixed asset ratio, and total asset turnover. Capital Structure includes the degree of financial leverage. Profitability factor in this study includes operating margin, return on assets and return on equity. Sample used are 45 automotive industry companies who have registered and still active until December 31, 2009. The statistical methods used in this research are classical assumption test, f test and t test. This study indicates that inventory turns, liquidity, receivable collections and, the ratio of fixed assets have a negative outcome to the total asset turnover, while net working capital has a positive outcome. Operating margin and total asset turnover both have positive values that have an impact on return on assets. Capital structure and degree of operating leverage both have negative results on the turnover of capital, while return on assets have positive results. 

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 Impact of Financial Risk Management Practices on Financial Performance: Evidence from Commercial Banks in Botswana

2019 ◽  
Vol 6 (1) ◽  
pp. 25
Author(s):  
Sathyamoorthi C. R. ◽  
Mogotsinyana Mapharing ◽  
Mphoeng Mphoeng ◽  
Mashoko Dzimiri
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Financial Risk ◽  
Management Practices ◽  
Return On Assets ◽  
Financial Risk Management ◽  
Return On Equity ◽  
Total Debt

The study examined the impact of financial risk management practices on the financial performance of commercial banks in Botswana. The study used Return on Asset and Return on Equity to measure financial performance. Inflation, Interest rates, total debt to total assets, total debt to total equity, total equity to total assets and loan deposit ratios were used as proxies for financial risk management. The research population was all the 10 commercial banks in Botswana and the study covered a period of 8 years from 2011 to 2018. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyze the data. The results from regression analysis showed that interest rates had a negative and significant impact on return on assets and on return on equity. On the other hand, total debt to total assets showed a negative and insignificant effect on return on assets. However, total debt to total assets, revealed a positive and insignificant effect on return on equity. The loan deposit ratio indicated a negative and significant impact on return on assets and on return on equity. Findings suggest that banks should strike a proper balance between financial risk management practices and financial performance by engaging in appropriate market, credit, and liquidity risk management practices that will ensure safety for their banks and yield positive profits.

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 PENGARUH MANAJEMEN RISIKO LIKUIDITAS TERHADAP KINERJA PERBANKAN DI BURSA EFEK INDONESIA

2018 ◽  
Author(s):  
Herry Cornelius Hutabarat
Keyword(s):  
Risk Management ◽  
Key Words ◽  
Liquidity Risk ◽  
Operating Costs ◽  
Return On Assets ◽  
Return On Equity ◽  
Reserve Requirements ◽  
Operating Income ◽  
Independent Variables ◽  
Dependent Variables

<pre>The study aims to examine the effect of liquidity risk management on Return on Assets / ROA and on Return on Equity / ROE. Risk management is proxies by operating costs on operating income (BOPO), non-performing loans (NPL), and Reserve Requirements (RR). The results showed that the independent variables BOPO and RR had a significant effect on the dependent variable Y1, and simultaneously independent variables had a significant effect on the dependent variables Y1 and Y2.</pre><p><strong> </strong></p><p><strong>Key words : BOPO, NPL, RR, ROA and ROE</strong></p>

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