Factors determining the profitability of equity in small and mediumsized enterprises in Poland / Czynniki determinujące rentowność kapitału własnego w małych i średnich przedsiębiorstwach w Polsce

Management ◽  
2013 ◽  
Vol 17 (1) ◽  
pp. 185-198 ◽  
Author(s):  
Janina Jędrzejczak-Gas
Keyword(s):  
Linear Regression ◽  
Correlation Analysis ◽  
Capital Structure ◽  
Equity Capital ◽  
Return On Equity ◽  
Differentiation Method ◽  
Financial Position ◽  
Factors Influencing ◽  
Return On Sales ◽  
The Impact

Summary The equity capital profitability indicator is one of the basic measures of the financial position of the company. It is considered to be one of the most synthetic evaluation metrics of the companies activity. It’s level is influenced by the overall economic phenomenons taking place in the company. The purpose of this article is to identify factors influencing the return on equity of small and medium-sized enterprises and to examine the strength and direction of the impact of these factors on the level of ROE based on Du Pont model. To accomplish this objective were used three different methods: correlation analysis, deterministic (differentiation) method and the method of linear regression. The correlation coefficient analysis shows that trends in changes of return on equity and return on sales were strongly related. Trends of changes in return on equity and asset rotation (the turnover) were moderately similar. Trends of changes of return on equity and the capital structure were moderately dissimilar. The method differentiation method allowed to determine that, in most years of the period, both in small and medium-sized enterprises, the strongest factor affecting the change in return on equity was the return on sales. In the consideration of β, both small and mediumsized enterprises the key importance has the profitability of sales.

Factors influencing the structure of the Russian companies' capital

2020 ◽  
Vol 26 (7) ◽  
pp. 1647-1660
Author(s):  
O.N. Likhacheva ◽  
A.S. Belikevich
Keyword(s):  
Correlation Analysis ◽  
Capital Structure ◽  
Systems Approach ◽  
Empirical Studies ◽  
Factors Influencing ◽  
Oil Contracts ◽  
Economic Landscape ◽  
Relationship Of ◽  
Trade Wars ◽  
The Capital Structure

Subject. In the uncertain market environment, the optimal structure of capital is getting more important because it influences the competitiveness of a firm, its financial sustainability and solvency and, consequently, a success. Herein we dwell upon the hypothesis presuming the existence of capital structure determinants. Objectives. We review empirical studies on the subject, analyze determinants of the Russian companies’ capital structure. Methods. The study is based on the systems approach and methods of statistical analysis. Results. It is necessary to monitor how capital is shaped and formed. We investigated proceedings on factors influencing the capital structure and discovered relevant hypotheses, carrying out the correlation analysis of such factors. Conclusions and Relevance. It is especially important to examine factors influencing the capital structure, and find the appropriate format for the economy struggling through the crisis. The coronavirus pandemic unavoidably reshapes the global economic landscape, which has already been under the pressure of deglobalization processes (trade wars, repudiation of oil contracts). The correlation analysis did not reveal any relationship of the variables in question (the company’s age, ROE, ROA, MOEX, key rate, GDP, PPI) and the capital structure. Further research should be devoted to other factors and consider the unreasonableness and psychological background of managers’ behavior who make decisions concerning the capital structure.

scholarly journals How Web Shops Impact Consumer Behavior?

2021 ◽  
Vol 15 (3) ◽  
pp. 350-356
Author(s):  
Helena Štimac ◽  
Ivan Kelić ◽  
Karla Bilandžić
Keyword(s):  
Multivariate Analysis ◽  
Linear Regression ◽  
Correlation Analysis ◽  
Reliability Analysis ◽  
Online Shopping ◽  
Customer Behavior ◽  
Descriptive Statistics ◽  
Firm Reputation ◽  
Marketing Actions ◽  
The Impact

The behavior of e-customers is quite unpredictable, which raises additional questions about this topic. The purpose of the paper is to conduct research on e-customers, understand the impact of marketing actions on e-customer behavior and understand the unpredictability of e-customers. Research was conducted on the Mlinar web shop that sells cakes. 284 respondents/buyers had the opportunity to solve questionnaires about behavior after purchase and consumption of product. Different methods have been used in the analysis - descriptive statistics, multivariate analysis (reliability analysis, correlation analysis and linear regression) and analysis of variance (ANOVA). The results showed that most examinees were satisfied with online shopping on the Mlinar web shop and that they are impulsive when online shopping. Saving time is the main reason to buy on a web shop. Research proved that variables such as firm reputation/perceived value, e-satisfaction and online services positively affect the creation of e-loyalty in their users.

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.

scholarly journals Influence of the key account manager in the provisioning management: Evidence from staple companies during the events of COVID-19

Accounting ◽  
2022 ◽  
Vol 8 (2) ◽  
pp. 161-170 ◽  
Author(s):  
Luis-Ricardo Flores-Vilcapoma ◽  
Cynthia-Paola A lbengrin-Mendoza ◽  
Gabriela-Briggite Gomez-Rojas ◽  
Yuri Sánchez-Solis ◽  
Wagner Vicente-Ramos
Keyword(s):  
Experimental Design ◽  
Linear Regression ◽  
Correlation Analysis ◽  
Regression Model ◽  
Multiple Linear Regression ◽  
Linear Regression Model ◽  
Multiple Linear Regression Model ◽  
Cross Sectional ◽  
Key Account ◽  
The Impact

The purpose of this research was to evaluate the degree of influence exercised by the Key Account Manager in the provisioning management in the main companies called Staple in Peru, during the events of COVID-19. The research was of type quantitative, cross-sectional and temporal, with a non-experimental design, using a multiple linear regression model and correlation analysis to determine the impact that exists between the variables. The data belongs to the Industrias San Miguel company, distributed in a weekly period from June 2019 to March 2021, which gives 88 observations. The results allow us to conclude that the Key Account Manager is an important manager of the supply of goods during the crisis caused by COVID-19 in staple companies.

scholarly journals CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)

2021 ◽  
Vol 9 (03) ◽  
pp. 216-231
Author(s):  
Taddesse Shiferaw Deneke ◽  
◽  
Tripti Gujral ◽  
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Relationship ◽  
Asset Return ◽  
Return On Equity ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact ◽  
The Capital Structure

A lot of studies have actually been done by numerous researchers both in developed and developing countries such as Ethiopia to ascertain the empirical relationship existing between capital structure and firm performance with varying samples and period as well as application of several and divergent statistical estimation. This study is based on the identification of the impact that capital structure have on the financial performance of commercial banks in Ethiopia. In this regard, secondary data is collected from varied sources especially annual reports of the private commercial banks in Ethiopia. The literature review is done in the report, and it is identified operating, and the capital structure heavily affects net profit. Apart from this, return on equity, asset and capitals employed also affected by the capital structure of the banks. Regression analysis and descriptive analysis tools are used to analyse the data that is related to the sixteenprivate commercial banks in Ethiopia. On analysis of data, it is identified that operating and net profit is heavily affected by the capital structure. However, in the case of return on asset, return on equity, and return on capital employed, such kind of relationship is not observed. Thus, it is concluded on the basis of entire work that capital structure have the huge impact on the operating and net profit, but it does not put any large impact on the return on asset, return on equity and return on capital employed. The study recommended that banks follow a specific policy, in order to maintain a balance in the capital structure. It is also recommended that managers must keep a keen eye on the changes that are taking place in the capital structure.

scholarly journals The Impact of Currency Risk on Firm’s Value in Emerging Countries

2019 ◽  
Vol 13 (1) ◽  
pp. 7-27
Author(s):  
Ilia Kuchin ◽  
Mariia Elkina ◽  
Yury Dranev
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Risk Premium ◽  
Emerging Countries ◽  
Equity Capital ◽  
Cost Of Equity ◽  
Currency Risk ◽  
Return On Equity ◽  
The Cost ◽  
The Impact

This study is dedicated to estimating the impact of currency risk on the cost of equity in Brazil, Russia, India and South Africa. Our contribution to the literature is that we obtain further evidence on pricing of exchange rate risk in developing countries which for now is quite scarce. These motivates our research which is dedicated to BRICS capital markets with Chinese stock market excluded since it is heavily regulated. The aim of the research is to determine whether in emerging countries stock markets currency risk is a significant factor that influence cost of equity capital of a company. Changes in the value of exchange rate can impact cash flows of a firm and their riskiness, hence, the value of the company. In our research we will discuss the influence of exchange rate movements on the value of the firm through their impact on the cost of equity. Specifically, we investigate whether companies that report substantial currency gains or losses have to pay a higher required return on equity. Furthermore, in this study we take an attempt to estimate currency risk premia for exposure to appreciation and depreciation of currency separately and identify possible differences. For each country three models that extend Fama-French Three Factor Model by incorporating currency risk are estimated. We used equal-weighted portfolio approach to construction currency risk factors. They are estimated using information about the ratio of currency gains to sales or the magnitude of covariation between equity returns and exchange rate changes. In the second case appreciation and depreciation of domestic currency against US dollar is considered separately. Results indicate that in Russia firms which report substantial currency losses pay a positive risk premium, while in Brazil, India and South Africa companies with significantly positive or negative currency gains pay a lower required return on equity than firms with almost zero currency gains. Finally, we are trying to explain estimation results using sectoral breakdown of product exports in each country of data sample.

scholarly journals Impact of Capital Structure on Profitability:An empirical analysis of listed firms in India

2018 ◽  
Vol 7 (2) ◽  
pp. 1-6
Author(s):  
Atif Ghayas ◽  
Javaid Akhter
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Short Term ◽  
Return On Equity ◽  
Listed Firms ◽  
Relationship Capital ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This study aims to empirically examine and analyze the impact of capital structure decision on the firm’s profitability by using a sample of 35 Indian pharmaceutical companies listed on Bombay Stock Exchange (BSE) during the period of 5 years from 2012 to 2016. Regression Analysis is used to measure the extent and nature of the relationship. Capital structure variables used in the study are ratio of long-term debt to total assets (LDA), ratio of short-term debt to total assets (SDA) and ratio of Total debt to total assets (DA) while profitability has been measure by Return on Equity (ROE). Firms Size (SIZE)and Salesgrowth(GROW) are also used as control variables. Results reveal a positive effect of SDA and DA on ROE, while a weak-to-no effect was found of LDA on ROE.

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 Capital Structure and Performance of Deposit Money Banks in Nigeria

2021 ◽  
Vol 17 (4) ◽  
pp. 130
Author(s):  
Osareme Erhomosele
Keyword(s):  
Regression Analysis ◽  
Theoretical Model ◽  
Firm Performance ◽  
Capital Structure ◽  
Agency Cost ◽  
Return On Equity ◽  
Legal Control ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Investigations into the relationship between capital structure and firm performance over the years have consistently produced mixed results in the light of prevailing theories relevant to the concept of capital structure. The study examined the nature of the relationship between the capital structure of Deposit Money Banks (DMBs) in Nigeria and the trend of performance recorded in the industry. Leverage was adopted as a surrogate for capital structure, while firm performance was proxied by profit efficiency and return on equity. A regression analysis test was applied to a balanced panel data, pooled from a sample of 11 DMBs to determine the impact of capital structure on performance. The study found evidence that supports a non-monotonic relationship between capital structure and performance of DMBs, as predicted by the agency cost theoretical model. A major recommendation elicited from the findings of the study advocates for legal control on the proportion of debt DMBs can include in their capital structure if they are to operate as efficiently as expected.

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.

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