scholarly journals How Does Debt Financing Affect Financial Performance? A Study of Transport Companies Listed in Pakistan

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Ulfat Abbas ◽  
Sohail Aziz ◽  
Samina Khan
Keyword(s):  
Financial Performance ◽  
Debt Financing ◽  
Annual Reports ◽  
Transport Sector ◽  
Return On Assets ◽  
Secondary Sources ◽  
Earnings Per Share ◽  
The Impact ◽  
Retained Earnings

  Purpose: The purpose of this paper investigates the impact of debt financing on airline’s (transport) sector performance of Pakistan. Design/Methodology/Approach: We gathered the data from secondary sources. In this study, we used a data sample of 11 years from 2008-2018 by using companies annual reports. Due to unavailability of data, only 3 transport companies have been taken for analysis. The software which we used in analysis is SPSS (Statistical Package for Social Science). Findings: The findings of the study suggests that there is opposite relationship between debt financing and financial performance of airlines. Debt is measured from three ratios, short term debt to total assets, long term debt to total assets and total debt to total assets ratio. For the measurement of performance, we used return on assets and earnings per share. We concluded on the basis of findings that the companies should focus on retained earnings which is cheaper source of finance and use less level of debt. As the more level of debt use by the companies, the performance of companies’ decrease. Implications/Originality/Value: There is only one study is available in Pakistan which used transport sector in Pakistan in debt financing context                                                          

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 Corporate Social Responsibility on the Financial Performance of Banks in Pakistan

2014 ◽  
Vol 21 ◽  
pp. 9-19 ◽  
Author(s):  
M. Shoukat Malik ◽  
Muhammad Nadeem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Service Sector ◽  
Annual Reports ◽  
Net Profit ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The purpose of this paper is to investigate the impact of Corporate Social Responsibility on the Financial Performance of banks in the service sector of Pakistan. The data is obtained from the annual reports issued by the banks during 2008-2012. To verify the relationship between EPS, ROA, ROE, Net Profit and CSR regression models are used. The results show that there is lack of CSR in Pakistan and the regression model shows that there is positive relationship between profitability (EPS, ROA, ROE, and Net Profit) and CSR practices. The Financial institutions which implements CSR in their operations earn more profit for the long term periods.

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.

Empirical Analysis of Dependence on Capital Structure with Respect to Its Impact on the Financial Performance of Domestic Non Financial Listed Stock Exchange Companies Operating in the Public Sector of Pakistan

2016 ◽  
Vol 3 (2) ◽  
pp. 58-76
Author(s):  
Syed Jawad Hussain Shahzad ◽  
Memoona Kanwal
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Research Work ◽  
Debt Financing ◽  
The Impact ◽  
The Relationship

This research work is based on the relationship that exists between the capital structure and performance of different sector's firms currently operating in the Pakistan. Capital structure decisions can be considered as the most important financial performance and risk management tools which are available to the companies' management. Capital structure can also play an important role in performance assessment, in performance management and in effective handling of ownership claims. The extensive use and heavy dependence on debt has exposed many companies to potential risk of declined performance and also to the risk of insolvency. This study analyzes the relationship between various capital structure indicators and dependence of financial performance of companies on these indicators using a broad sample covering 202 non-financial firms listed on Karachi Stock Exchange (KSE) over the period of 1999-2012. The sample firms are divided into five sectors i.e. Textile, Chemical, Cement, Food and Fuel & Energy. Financial performance of firms is quantified by Return on Assets (ROE), Return on Equity (ROE), Price-Earnings ratio (PE) and Tobin's Q (TQ). The relationship between financial performance measures and capital structure measures i.e. total debt, short term debt and long term debt is estimated using GLS fixed and random effect model. Sector wise comparison shows that majority of the sectors have similar capital structure. The impact of capital structure on the financial performance is also similar across sectors with few variations. Overall the relationship is found to be negative among capital structure and firm performance measured by ROA, ROE and PE except TQ which is positively related to Long Term Debt to total Assets (LTDA). The result of industry wise comparison contributes significantly to the existing stream of knowledge. The results indicate that lower reliance on the debt financing improves the performance of the firm whereas dependence and exposure of debt financing reduce performance. The research can be useful for the management of companies in different sectors that want to improve their performance.

scholarly journals Capital Structure and its Impact on Financial Performance in Insurance Companies of Nepal

2020 ◽  
Vol 13 (1) ◽  
pp. 89-106
Author(s):  
Bhupal Jaishi
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Negative Impact ◽  
General Structure ◽  
Insurance Companies ◽  
Debt Ratio ◽  
Return On Assets ◽  
Earnings Per Share ◽  
Total Debt ◽  
The Impact

The paper attempts to examine the relationship between capital structure and the financial performance of Nepalese insurance companies.  Return on assets and earnings per share are the dependent variables. Independent variables are total debt ratio, equity to total assets ratio, size, liquidity and tangibility.  This paper uses descriptive as well as causal-comparative research design to examine the general structure of capital structure and financial performance and their relationship. The data were collected from annual reports of listed insurance companies in Nepal. The study is based on 84 observations from 14 insurance companies of Nepal from 2013/14 to 2018/19. The regression models are estimated to test the effect on financial performance variables i.e. return on assets and earnings per share. The result shows that insurance companies having a high debt ratio have better financial performance. An increase in debt ratio and tangibility increase return on assets and an increase in equity, size and liquidity decrease return on assets in the industry. The impact of the debt ratio and tangibility on earning per share is positive and there is the negative impact of equity, size and liquid ratio on earning per share. The major conclusion of this study is that total debt ratio, equity to total assets ratio, leverage, size, liquidity and tangibility are the significant factors in determining the financial performance of Nepalese insurance companies. The insurance companies of Nepal interested to increase financial performance can increase their total debt ratio and tangible assets and decrease equity, firm size, and liquidity ratio.

scholarly journals Pre & Post-Merger Financial Performance: An Indian Perspective

2018 ◽  
Vol 7 (3) ◽  
pp. 181-200
Author(s):  
Ritesh Patel
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Positive Trend ◽  
Return On Assets ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Net Profit ◽  
Before And After ◽  
Indian Banks

Abstract The paper compares the before and after merger position of long term profitability with respect to selected Indian banks for a period of 2003-04 to 2013-2014. The financial performance is evaluated on the basis of various variables. The study found a negative impact of merger on return on equity, return on assets, Net profit ratio, yield on advance and yield on investment. However, variables, namely, the Earnings per Share, Profit per employee and Business per employee have shown positive trend and grown after the merger. It has been observed that after the merger, the Assets, Equity, Investment and advances of all banks increases, but due to underutilization, their respective yield decreases. On a contrary, the business per employee and profit per employee have increased due to optimum utilization of human resources. By applying the Comparative Analysis, the paper also assesses the financial performance of acquiring bank with the banking industry. The Bank of Baroda and Oriental bank of commerce has found decreases in Yield on Advances and yield on investment as compared to average of all banks in the postmerger period. State bank of India & IDBI Bank has higher business per employee and profit per employee as compared to industry average.

scholarly journals Human Capital Reporting (HCR) and Shareholder Value Maximization in Listed Manufacturing Firms in Nigeria

2021 ◽  
Vol 12 (4) ◽  
pp. 168
Author(s):  
Ademola Adeniran Adewumi ◽  
Ilesanmi Isaac Omole ◽  
Amos Olatunbosun Talabi ◽  
Godwin Gabriel Omula
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Firm Value ◽  
Manufacturing Firms ◽  
Share Price ◽  
Annual Reports ◽  
Earnings Per Share ◽  
Ex Post ◽  
Distributional Dynamics ◽  
The Impact

This study examines the impact of human resource reporting (HCR) or disclosures on share price and earnings potential measured by the earnings per share. It adopts an ex-post causal research design and employs secondary data retrieved from annual reports of 30 selected manufacturing firms in Nigeria. Data was analyzed using descriptive statistics, correlation analysis and the quantile regression techniques. The research outcome from the distributional dynamics for share price tends to highlight that the effect of HRD-Index is significant at 5% for firms at high levels above average financial performance at Q[0.2.] - Q[0.4] and also significant at 5% for firms at average levels of firm value Q[0.5] and even below average levels Q[0.6]-Q[0.9]. Finding thus highlights that the impact of human resource disclosures on share price or market value may not necessarily be a function of the share price levels. The distributional dynamics for EPS used as the measure for earnings potential is similar to that which was observed for Share price and tends to highlight that the effect of human resource disclosure is significant at 5% for firms at high levels above average earnings per share measure of financial performance at Q[0.1], Q[0.2.], Q[0.3.] and Q[0.4.] and also significant at 5% for firms at average levels of financial performance Q[0.5] and even below average levels Q[0.6]-Q[0.8]. The recommendation is that human resource investments should not been looked at as an expense but as a competitive strategy of the firm.

scholarly journals INFLUENCE OF MODERATION OF COMPANY STRATEGY ON CSR DISCLOSURES AND FINANCIAL PERFORMANCE MINING COMPANY IN INDONESIA

2018 ◽  
Vol 2 (2) ◽  
Author(s):  
Budi Santoso Santoso
Keyword(s):  
Financial Performance ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Annual Reports ◽  
Return On Assets ◽  
Moderator Variable ◽  
Company Strategy ◽  
Research Population ◽  
The Impact

This study aims to analyze the role of corporate strategy moderation in the influence of CSR performance on corporate financial performance. Company strategy is measured by Product Differentiation, CSR performance measured using Global Reporting Association (GRI) index, and financial performance measured with Return on Assets (ROA) period 2016-2017. Research population Mining companies listed in Indonesia Stock Exchange (BEI) in 2016 and 2017 and Companies that issue annual reports during the period 2016-2017. The results of this study indicate that the performance of CSR does not show significant influence to the company's financial performance and use the company's strategy as a moderator variable indicates that the company's strategy variable turns out to moderate significantly the impact of CSR performance on the financial performance of the company

scholarly journals LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 15-25
Keyword(s):  
Oil And Gas ◽  
Negative Impact ◽  
Secondary Data ◽  
Equity Capital ◽  
Debt Financing ◽  
Annual Reports ◽  
Oil And Gas Firms ◽  
The Impact ◽  
Retained Earnings ◽  
Oil And Gas Sector

The purpose of this paper is to figure out the link between liquidity and profitability, as well as the impact of liquidity on profitability. Ten listed companies with a bigger market share in the oil and gas sector of the Nigerian economy were subjected to a fixed panel regression study. Secondary data was gathered for ten years, from 2011 to 2020, from their published annual reports. Profit after tax (PAT), Return on Asset (ROA), and Return on Equity (ROE) were used to determine profitability (ROE). Internal liquidity variables such as equity, debt, and sales were utilized to determine the behavior of the dependent variable, but external elements such as lending interest rate and exchange rate were employed to further explain profitability behavior. The data were analyzed using a multiple regression approach. The findings reveal that debt has a significant negative impact on companies' profitability. Similarly, equity capital, as well as retained earnings, are more beneficial to firms than the debt financing of the oil and gas sector. The study, therefore, recommends that oil and gas firms should boost their equity capital, improve their revenues, increase their retain earnings, and reduce debt financing to enable them to generate more wealth for shareholders.

scholarly journals Impact of Liquidity on the Profitability of the Commercial Banks of Nepal

Pravaha ◽  
2020 ◽  
Vol 26 (1) ◽  
pp. 39-44
Author(s):  
Churamani Pandey ◽  
Rupesh Kumar Budhthoki
Keyword(s):  
Commercial Banks ◽  
Annual Reports ◽  
Return On Assets ◽  
Investment Ratio ◽  
Secondary Sources ◽  
Study Results ◽  
Capital Ratios ◽  
Beta Coefficient ◽  
The Impact ◽  
The Relationship

The study aims to examine the impact of liquidity on the profitability of Nepalese commercial banks. Investment ratio, capital ratio and liquidity ratio are the independent variables and return on assets is dependent variable. Secondary sources of data have been used from the annual reports of sampled commercial banks. The regression models are estimated to test the effect of bank liquidity on performance of Nepalese commercial banks. Study results reveal that investment ratios and liquidity ratios are negatively related to return on assets indicating that higher the investment ratios and liquidity ratios, lower would be the return on assets and vice versa. Further, the relationship between capital ratios and return on assets is found to be positive indicating that higher the capital ratios of the bank, higher would be the return on assets. Similarly, beta coefficient for capital ratio is positively significant with bank performance, which indicates that increase in capital ratio leads to increase the performance of the banks. However, beta coefficients for investment ratio and liquidity ratio are negative with return on assets indicating increased liquidity ratio and investment ratio decrease the return on assets of the bank.

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