scholarly journals RISIKO KEUANGAN DAN TINGKAT KESEHATAN KEUANGAN BANK DENGAN SIZE, INFLASI, DAN GDP SEBAGAI VARIABEL KONTROL PADA PERBANKAN SYARIAH DI INDONESIA

2017 ◽  
Vol 3 (01) ◽  
pp. 27
Author(s):  
Yuwita Ariessa Pravasanti
Keyword(s):  
Financial Risk ◽  
Panel Data Analysis ◽  
Control Variable ◽  
Operational Risk ◽  
Islamic Banking ◽  
Financial Risks ◽  
Return On Assets ◽  
Return On Equity ◽  
Operating Margin ◽  
Financial Soundness

This study aims to analyze the financial risk and health financial level of banks on Islamic banking in Indonesia. This study aims to get empirical evidence about the possibility of relationship and influence of financial risks (liquidity risk (Financing to Deposit Ratio), financing risks (Non Performing  Financing)  and  operational  risk  (RWA  for  operational  risk)  and  the  financial soundness of banks (Net Operating margin, Return on Assets and Return on Equity) with the size of bank, inflation and Gross Domestic Product (GDP) as a control variable in islamic banking in Indonesia. This study used panel data analysis and used 9 islamic bank with 5 years in a period, from 2010 to 2014 so the sample used in this study were 45 data. The data were processed using Microsoft Excel and Eviews software version 8.The results showed that simultaneously financial risk not significant effect on NOM, but significant effect on ROA and ROE. Partially NPF variables only significantly influence on NOM, FDR and NPF variable significant effect on ROA, and FDR variable significant effect on ROE. The control variables used in this study had no effect on health financial level.

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 performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Analysis of The Influence of Liquidity, Credit and Operational Risk, in Indonesian Islamic Bank’s Financing for The Period 2007-2013

2015 ◽  
Vol 17 (3) ◽  
pp. 279 ◽  
Author(s):  
Ousmane Diallo ◽  
Tettet Fitrijanti ◽  
Nanny Dewi Tanzil
Keyword(s):  
Credit Risk ◽  
Causal Relationship ◽  
Risk Sharing ◽  
Banking Sector ◽  
Panel Data Analysis ◽  
Banking System ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Islamic Banking ◽  
Islamic Bank

The purpose of this paper is to analyze the influence of credit, liquidity and operational risks in six Indonesian’s islamic banking financing products namely mudharabah, musyarakah, murabahah, istishna, ijarah and qardh, in order to try to discover whether or not Indonesian islamic banking is based on the “risk-sharing” system. This paper relies on a fixed effect model test based on the panel data analysis method, focusing on the period from 2007 to 2013. The research is an exploratory and descriptive study of all the Indonesian islamic banks that were operating in 2013. The results of this study show that the Islamic banking system in Indonesia truly has banking products based on “risk-sharing.” We found out that credit, operational and liquidity risks as a whole, have significant influence on mudarabah, musyarakah, murabahah, istishna, ijarah and qardh based financing. There is a correlation between the credit risk and mudarabah based financing, and no causal relationship between the credit risk and musharaka, murabahah, ijarah, istishna and qardh based financing. There is also correlation between the operational risk and mudarabah and murabahah based financing, and no causal relationship between the operational risk and musharaka, istishna, ijarah and qardh based financing. There is correlation between the liquidity risk and istishna based financing, and no causal relationship between the liquidity risk and musharaka, mudarabah, murabahah, ijarah and qardh based financing. A major implication of this study is the fact that there is no causal relationship between the credit risk and musharakah based financing, which is the mode of financing where the islamic bank shares the risk with its clients, but there is an influence of credit risk toward mudarabah mode financing, a financing mode where the Islamic bank bears all the risk. These findings can lead us to conclude that the Indonesian Islamic banking sector is based on the “risk sharing” system.

scholarly journals Market share of credit facilities and their impact on the profitability of banks in the Kingdom of Saudi Arabia – An applied study on Saudi banks –: الحصة السوقية للتسهيلات الائتمانية وأثرها على ربحية المصارف في المملكة العربية السعودية – دراسة تطبيقية على المصارف السعودية –

2020 ◽  
Vol 4 (11) ◽  
Author(s):  
Amal Abdullah Abdullah Al- Qahtani
Keyword(s):  
Saudi Arabia ◽  
Data Analysis ◽  
Market Share ◽  
Panel Data Analysis ◽  
Rate Of Return ◽  
Return On Assets ◽  
Kingdom Of Saudi Arabia ◽  
Return On Equity ◽  
Applied Study ◽  
Descriptive Approach

The objective of this study is to reveal the effect of the market share of credit facilities on the rate of return on assets and the rate of return on equity in Saudi banks. The study sample consisted of all Saudi banks, which included twelve banks listed on the stock market of 2008 and before 2018. The study relied on the analytical descriptive approach by using the Panel Data Analysis. One of the main findings of the study is that the market share positively affects the rate of return on assets, while the market share of credit facilities does not affect the rate of return on equity. Among the most important recommendations in the study is the need to reduce the rate of return on credit facilities, which may contribute to increasing its market share, which will increase the contribution to the achievement of profits and work on the balance between liquidity and profitability by maintaining the market share in the volume of deposits to give the bank the ability To increase credit facilities and thus increase profits in banks and to conduct further research related to the market share of credit facilities in Saudi banks.

scholarly journals Corporate Social Responsibility and Crowdfunding: The Experience of the Colectual Platform in Empowering Economic and Sustainable Projects

2020 ◽  
Vol 12 (13) ◽  
pp. 5251 ◽  
Author(s):  
Jesús Mauricio Flórez-Parra ◽  
Gracia Rubio Martín ◽  
Carmen Rapallo Serrano
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Risk ◽  
Sustainable Business ◽  
Return On Assets ◽  
Financial Barriers ◽  
Return On Equity ◽  
Financial Characteristics ◽  
Corporate Social ◽  
The Cost

In recent years, sustainable crowdfunding has been one of the key elements in the search for new sources of financing. This has involved eliminating financial barriers and intermediaries, bringing entrepreneurs’ projects closer to fund providers, and thus instigating changes in traditional investment and profitability parameters. Among these indicators, the sustainable business return and its relationship with Corporate Social Responsibility (CSR) could be a relevant factor to improve the cost of funding, to explain the return on assets (ROA), and, consequently, impacting on the return on equity (ROE). In this context, this paper takes as a reference 101 projects that are part of Colectual’s lending. We analyze factors such as sustainability—the application of CSR across a social responsibility index; the financial characteristics of the company—liquidity, leverage, and solvency; and the characteristics of the loans related to crowdfunding—amount, maturity, and charge rate of the loan. Our study provides empirical evidence that, besides financial characteristics, the commitment to CSR can improve collective lending and the management of resources, as well as enhance the capital wealth of companies, by improving shareholder profitability or ROE. Investors consider not only financial risk but also sustainability factors.

scholarly journals Leverage, capital and profitability of the banks: Evidence from Saudi Arabia

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1363-1370 ◽  
Author(s):  
Abdul Rahman Shaik ◽  
Raj Bahadur Sharma
Keyword(s):  
Control Variable ◽  
Negative Relationship ◽  
Positive Association ◽  
Debt Ratio ◽  
Return On Assets ◽  
Return On Equity ◽  
Total Debt ◽  
Tier 1 ◽  
Equity Ratio ◽  
Tier 1 Capital

The study examines the effect of leverage and capital on the profitability of selected Saudi Arabian Banks during the period 2014 and 2019. The banks have been selected based upon their size in terms of total assets. The profitability elements, such as Earnings per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) are the dependent variables; Total Debt Ratio (TDR), Tier 1 Capital Ratio (Tier 1 CAP), and Debt to Equity Ratio (DE) are the independent variables, and firm size is the control variable. The study estimates a pooled regression analysis to analyze the effect of these variables. The results of the study show that there is a positive relationship between the different profitability variables and Debt to Equity Ratio. The Total Debt Ratio is having positive association with ROA and ROE, and has an insignificant negative relationship with the EPS, and the Tier 1 capital ratio is having positive association with ROA and ROE, and has an insignificant relationship with the EPS.

scholarly journals Analisa Rasio Keuangan untuk Memprediksi Perubahan Laba pada Perusahaan Telekomunikasi Indonesia

2011 ◽  
Vol 2 (2) ◽  
pp. 883
Author(s):  
Engelwati Gani ◽  
Almitra Indira
Keyword(s):  
Stock Exchange ◽  
Profit Margin ◽  
Total Asset ◽  
Return On Assets ◽  
Current Ratio ◽  
Return On Equity ◽  
Operating Margin ◽  
Net Profit ◽  
Turn Over ◽  
Telecommunications Companies

This study was conducted to test the variable Current Ratio (CR), Net Profit Margin (NPM), Operating Margin Ratio (OMR), Return On Equity (ROE), Return on Assets (ROA) and Total Asset Turn Over (tattoo) to changing profit. Data obtained by the method of purposive sampling criteria (1) Telecommunications Companies listed on the Indonesia Stock Exchange (IDX) and consistently throughout the study period (2003 to 2010) and Telecommunication Company that provides the data of financial statements during the study period (2003 to 2010). The analysis showed that the data used in this study have been normally distributed and satisfy the classical assumptions, which include: there is no autocorrelation, no symptoms of multicollinearity, and no symptoms hetereskedasitas. From the results of regression analysis showed that the variables Net Profit Margin (NPM) and Operating Margin Ratio (OMR) partially significant effect on change in earnings. While the variable Current Ratio (CR), Return on Equity (ROE), Return on Assets (ROA) and Total Asset Turn Over (TATTOO) no significant effect on changes in earnings. The six variables used in the study jointly affect changes in earnings. Predictive capability of the six variables simultaneously is equal to 36.4%. 

THE ROLE OF FINANCIAL RISK IN MANAGING THE CAPITAL STRUCTURE AND PERFORMANCE OF RUSSIAN COMPANIES

2021 ◽  
Vol 4 (198) ◽  
pp. 56-61
Author(s):  
G.A. Nekrasova ◽  
Keyword(s):  
Capital Structure ◽  
Financial Management ◽  
Financial Risk ◽  
Negative Impact ◽  
Return On Assets ◽  
Return On Equity ◽  
Debt Burden ◽  
Financial Management System ◽  
And Performance ◽  
The Capital Structure

Issues related to the formation and optimization of the capital structure are an important component of the company's financial management system. The effectiveness of decisions depends on external and internal factors that affect the financial activities of the company, including financial risk. The article reveals the concept of financial risk and assesses its role in the analysis of the relationship between the capital structure and profitability indicators. It is established that the negative impact of the level of debt in the capital structure on the return on assets weakens as the financial risk increases, measured in terms of current liquidity coefficients and interest coverage. An increase in the debt burden leads to an increase in the return on equity when the company has enough funds to service the debt and the revenue variation is at an average level.

scholarly journals The extent of audit report lag and governance mechanisms

2020 ◽  
Vol 11 (1) ◽  
pp. 70-89
Author(s):  
Mohamed Ahmed Kaaroud ◽  
Noraini Mohd Ariffin ◽  
Maslina Ahmad
Keyword(s):  
Fixed Effects ◽  
Audit Committee ◽  
Panel Data Analysis ◽  
Control Variable ◽  
Islamic Banking ◽  
Audit Report ◽  
Governance Mechanisms ◽  
Financial Reports ◽  
Content Type ◽  
Banking Institutions

Purpose The purpose of this study is to examine the extent of audit report lag and its association with governance mechanisms in the Islamic banking institutions in Malaysia. Design/methodology/approach The extent of audit report lag is defined by the number of days from a company’s financial year-end to the signature date on its audit report. The sample of the study comprises 112 observations of Islamic banking institutions’ financial reports for the period 2008-2014. A balanced panel data analysis is performed to analyse the association between the extent of audit report lag and governance mechanisms. Findings The findings show that the extent of audit report lag for the sample selected ranges from a minimum period of 7 days to a maximum period of 161 days, and the extent of audit report lag is approximately two months on average. A fixed effects analysis indicates that audit committee expertise and audit committee meeting have significant association with the extent of audit report lag. On the other hand, board independence, audit committee size and Shari’ah board expertise have insignificant association with the extent of audit report lag. In addition, one control variable (Islamic bank size) is found to be significantly associated with longer audit report lag. Practical implications The findings provide useful feedback for Malaysian policymakers on the past and current practices of financial reports and of governance mechanisms. The findings of the study would help the policymakers in monitoring the Islamic banking institutions’ compliance with financial reports submission requirements. The policymakers perhaps could relook into governance mechanisms that reduce the extent of audit report lag in the Islamic banking institutions and implement regulations to strengthen them. Originality/value Unlike the majority of prior studies that investigated the association between the extent of audit report lag and governance mechanisms, this study provides two contributions. First, to the authors’ knowledge, this study is the first piece of research that examined the association between governance mechanisms and the extent of audit report lag in Islamic banking institutions. Second, the study examined the association of new governance variable, namely, Shari’ah committee expertise which has not been previously examined in the literature of audit report lag.

scholarly journals Family and non-family business behaviour in the wine sector: A comparative study

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael P. Soler ◽  
German Gemar ◽  
Rafael Guerrero-Murillo
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Risk Exposure ◽  
Debt Ratio ◽  
Return On Assets ◽  
Return On Equity ◽  
Operating Margin ◽  
Wine Sector ◽  
Key Variables

The purpose of this study is to explore the main differences in key variables of winemaking companies in view of their consideration as a family business in Spain. Using a database of 520 wineries with the main variables used in the literature, this paper analyses the differences between being a family or a non-family winery on the performance, size and structure of debt. The companies were classified as family or non-family then a means test was performed for all key variables between both groups. This study suggests that there are significant differences between family and non-family businesses in the return on assets (ROA) and in the operating margin, which are higher in the case of companies classified as family businesses and in the relative debt and debt ratio, which are higher in companies considered to be non-family. The remaining variables are statistically equal. Better margins in family companies could be due to advantages in the prices derived from the products or brands offered or lower agency costs that may lead to an improvement in management costs, which explains such differences. In addition, the lower risk exposure that would lead family businesses to opt for less risky leverage formulas that would lead to increased long-term financing could explain why these advantages are not reflected in the return on equity (ROE).

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