scholarly journals THE IMPACT OF RISK AND REPUTATION ON FINANCIAL PERFORMANCE IN ISLAMIC BANKING: EVIDANCE FROM INDONESIA

2021 ◽  
Vol 5 (2) ◽  
pp. 230-243
Author(s):  
Falikhatun Falikhatun ◽  
Mutiarafah Mutiarafah
Keyword(s):  
Financial Performance ◽  
Risk Mitigation ◽  
Control Variable ◽  
Liquidity Risk ◽  
Profit Sharing ◽  
Least Square ◽  
Financing Risk ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

This study aims to examine the impact of risk and reputation on financial performance. More specifically, we use financing risk, liquidity risk, reputation with rewards, and growth in profit-sharing based financing as our variable of interests. We also assign bank size as a control variable. Our data is analyzed using Generalized Least Square (GLS) regression. Islamic Commercial Banks listed in Sharia Banking Statistics (Statistik Perbankan Syariah - SPS) published by OJK in 2015−2019 are selected as our sample. We find that (1) financing risk has a negative effect on financial performance; and (2) both reputation with rewards and bank size have a positive effect on financial performance. However, liquidity risk and growth in profit-sharing based financing do not affect financial performance. Several research implications are the importance of risk mitigation, the importance to maintain the reputation of the Islamic bank’s stakeholders, and creating innovative funding and financing products.

scholarly journals The Impact of Risk Management Factors on Banks Performance of Pakistan

2020 ◽  
Vol 13 (4) ◽  
pp. 1-27
Author(s):  
Qasim bin Zahid ◽  
Muhammad Khalid Sohail ◽  
Abdul Raheman ◽  
Muzammal Ilyas Sindhu
Keyword(s):  
Financial Performance ◽  
Risk Mitigation ◽  
Liquidity Risk ◽  
Descriptive Statistics ◽  
Statistical Techniques ◽  
Corporate Sector ◽  
Negative Effect ◽  
Risk Disclosures ◽  
The Impact ◽  
Financial Outcome

Risks usually affect the overall profitability/financial performance of any corporate sector. Various techniques of risk mitigation are important in dealing with downturns in the Pakistani economy regarding pandemic, unstable political situations in Pakistan, and different time-to-time policies of state banks regulation which consist of BASEL amendments. Data of fifteen banks had been selected for the period 2012-2018 and analyzed by using certain statistical techniques which are descriptive statistics, correlation, anal regression analysis. As from analysis, we found that Credit risk and Liquidity risk has a positive significant effect on the financial performance of the bank, which is measured by ROA, ROE, Tobin’s Q. Further, one of the risk factors which is operational risk diverts from a hypothesis which shows significant negative effect on the financial outcome of Pakistani banks. The results of this study will help the management of banks to find better solutions to enhance performance. Further, the policy implication of this study advises that banks should follow BASEL regulations and risk disclosures strictly to cope with the market.

scholarly journals THE EFFECT OF PROPPING ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN INDONESIA

2021 ◽  
Vol 6 (2) ◽  
pp. 152
Author(s):  
Steppani Steppani
Keyword(s):  
Financial Performance ◽  
Market Performance ◽  
Least Square ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Related Party Transactions ◽  
Analysis Technique ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

This study aims to find empirical evidence of the impact of propping- related party transactions on company performance. The research sample was manufacturing companies listed on the IDX during 2017-2019 which were determined by purposive sampling and using the Generalized Least Square panel data regression analysis technique (cross-section weights). The results showed that propping (related party transactions related to account payables) had a positive effect on financial performance and had a negative effect on the company's market performance. Propping (related party transactions related to other payables) had a positive effect on the company's financial performance but doesn’t an affect on the company's market performance. Meanwhile, propping (related party transactions related to liabilities other than account payables) had a negative effect on financial performance but had a positive effect on the company's market performance.

scholarly journals The Impact of Liquidity Risk Management on the Financial Performance of Saudi Arabian Banks

2021 ◽  
Vol 11 (1) ◽  
pp. 67-75
Author(s):  
Ishaq Hacini ◽  
Abir Boulenfad ◽  
Khadra Dahou
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Control Variable ◽  
Liquidity Risk ◽  
Saudi Arabian ◽  
Return On Equity ◽  
Conventional Banks ◽  
The Impact

This paper aims to analyze the impact of liquidity risk management on the financial performance of selected conventional banks in Saudi Arabia for the period of 2002-2019. Liquidity risk is measured with the loan to deposit ratio (LTD) and cash to deposit ratio (CTD). Financial performance is measured by the Return on Equity (ROE). Equity to total asset ratio (ETA) is used as the control variable. The study uses the panel data method (Pool, Fixed-effects and Random-effects) for testing the study hypothesis. The results show that liquidity risk has a significant negative impact on the financial performance measured by Saudi Arabian banks.

scholarly journals Penerapan Manajemen Risiko pada Tingkat Efisiensi Keuangan di Bank DKI Jakarta

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 417-428
Author(s):  
Saridawati Saridawati ◽  
Murniyati Murniyati ◽  
Ratih Hastasari ◽  
Suharini Suharini
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Statistical Tests ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Operating Income ◽  
Financing Risk ◽  
The Impact ◽  
Regional Development Banks ◽  
Positive Effect

Efficiency is one measure of bank performance. The efficiency of a bank is influenced by the way management manages risk. Financial services authority regulation number 18 /pojk.03/2016 issued by Bank Indonesia which requires every bank in Indonesia to form a risk management team. Risk management problems in the banking world are related to the losses they experience, and Regional Development Banks are expected to be able to detect maximum losses that may arise in the future. This team is obliged to control various aspects of risk management in each bank and observe the impact of risk management implementation. This study aims to determine the efficiency level of conventional banking at PT Bank Pembangunan Daerah Jawa Tengah and the effect of financing risk, operational risk and liquidity risk on the efficiency level. Efficiency is measured by the method of Operating Expenses from Operating Income. The data used as the object of this research is Bank DKI Jakarta for the 2015-2020 period. The level of influence of the variables X1, X2, X3 on Y on the determinant coefficient (R2) shows the Adjusted R Square number of 0.359 or 35.9% which means that the variation in efficiency level can be explained by financing risk, operational risk and liquidity risk, the remaining 64.1% can be explained from other variables outside, for previous related studies there is no similarity in the influence of independent (x) and dependent (Y) values, because of differences in values ??generated from SPSS processing data. Based on the results of statistical tests and discussion analysis, it is known that financing risk, operational risk, liquidity risk simultaneously have no effect on the level of efficiency and only financing risk has a significant positive effect on the level of efficiency at PT Bank DKI Jakarta.

scholarly journals Pengaruh Kinerja Keuangan Pemerintah Daerah Terhadap Pertumbuhan Ekonomi (Studi Pada Daerah Pemekaran di Pulau Sumatera)

2021 ◽  
Vol 24 (2) ◽  
pp. 1-17
Author(s):  
Reza Rinova ◽  
Fajar Gustiawaty Dewi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Performance ◽  
Secondary Data ◽  
Income Transfer ◽  
Dependency Ratios ◽  
Negative Effect ◽  
Transfer Income ◽  
The Impact ◽  
Positive Effect

Expansion of regions is aimed to prosper the community. In 2018 as many as 314 proposals for expansions could not be approved by the Minister of Home Affairs because the impact was not in line with expectations. This study aims to see the direct effect of the financial performance of the newly formed government regions on economic growth. Expansion area are divided into two forms, namely the old expansion area and the new expansion area. The financial performance of the local government is measured using the ratio of decentralization rates, regional dependency ratios, and the effectiveness of LGR (Locally-Generated Revenue) ratios. Population in this study is all the expansion areas of districts/cities on the island of Sumatera. Time-series secondary data year 2013-2017 covering regional original income, total regional income, transfer income, regional original income budget, and realization of Gross Regional Domestic Product (GRDP) were used. Using SPSS tool, the results shows that the ratio of the degree of decentralization has a negative effect on economic growth. Furthermore, regional dependency ratios do not affect economic growth. The LGR effectiveness ratio has a positive effect on economic growth.

scholarly journals Intellectual Capital and Capital Structure Effect on Firms’ Financial Performances

2020 ◽  
Vol 3 (2) ◽  
pp. 127-138
Author(s):  
Ani Wilujeng Suryani ◽  
Alfin Nadhiroh
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Financial Distress ◽  
Least Square ◽  
Manufacturing Companies ◽  
Negative Effect ◽  
Asean Economic Community ◽  
Fierce Competition ◽  
The Impact

Objective – This study aims to determine the influence of intellectual capital and capital structure on financial performance in manufacturing companies in Indonesia. Design/methodology – The data were collected from all 140 manufacturing companies from 2015 to 2019. While most studies of intellectual capital were conducted by using multiple regression analysis, we investigate the impact of intellectual capital and capital structure on the financial performance by using weighted least square regression.Results – The results showed that intellectual capital has a significant positive effect on firms’ financial performances, but the capital structure has a negative effect. The results of this study are beneficial for managers to consider increasing intellectual capital to create a competitive advantage in the midst of fierce competition of the ASEAN Economic Community era. In addition, managers need to consider the optimum capital structure to fulfill funding needs, hence financial distress can be minimized.Limitation/Suggestion - This study is a quantitative study limited to the availability of the data. Also, a number of outliers were found in the data and treated prior to the analysis.

scholarly journals Firm’s Attribute and Performance of Deposit Money Banks

2021 ◽  
Vol 65 (2) ◽  
pp. 207-219
Author(s):  
Olusola Olowofela ◽  
◽  
Abiola Tonade ◽  
Benjamin Lisoyi ◽  
◽  
...  
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Financial Statements ◽  
The Other ◽  
Liquidity Management ◽  
Negative Effect ◽  
And Performance ◽  
The Impact ◽  
Firm Attributes ◽  
Positive Effect

This study investigates the impact of firm attributes on the financial performance of deposit money banks in Nigeria’s financial sector. The scope of this research covered the period 2007 – 2018 using audited financial statements and reports of nine (9) deposit money banks listed on the Nigerian Stock Exchange. The results revealed that bank liquidity has significant negative effect, while bank growth has insignificant negative effect on financial performance. On the other hand, bank size and leverage have insignificant positive effect on the financial performance of banks. It is recommended that banks should pay attention to liquidity management and use this to enhance performance. Also, the management of banks should endeavor to make use of their growth opportunities optimally.

scholarly journals Regional financial performance mediates the effect of regional balance funds and expenditures on economic growth

2019 ◽  
Vol 6 (6) ◽  
pp. 164-171
Author(s):  
Siktania Maria Dilliana ◽  
Gayatri Gayatri ◽  
Ni Made Dwi Ratnadi ◽  
I Gde Ary Wirajaya
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Profit Sharing ◽  
Regional Economic Growth ◽  
Regional Government ◽  
Infrastructure Development ◽  
Negative Effect ◽  
Effectiveness And Efficiency ◽  
Positive Effect ◽  
Direct Expenditure

This study aims to obtain empirical evidence about the balance funds and regional expenditure on economic growth with regional financial performance as a mediating variable. The results showed that the balance fund did not affect the financial performance of the region with a result of 0.054 indicating that the balance fund received by the regional government increased or decreased could not affect the regional financial performance. Regional expenditure has a negative effect on regional financial performance with a result of 0.006 indicating that the allocation of indirect expenditure is higher than the direct expenditure allocation. Balancing funds have a positive effect on economic growth with a result of 0.031 indicating that the amount of general allocation funds, special allocation funds, and profit-sharing funds has increased so that economic growth also increases. Regional expenditure has a positive effect on economic growth with a result of 0.020` indicating that there is infrastructure development undertaken to encourage regional economic growth. Regional financial performance has a positive effect on economic growth with a result of 0.009 indicating that regional capability is getting better based on the results of the ratio of independence, effectiveness, and efficiency.

scholarly journals Dividend Policy and Financial Performance- A Study of Quoted Manufacturing Firms in Nigeria and Kenya

2019 ◽  
pp. 1-8
Author(s):  
Ayodeji Temitope Ajibade ◽  
Motunronke Bintu Amuda ◽  
Oluwatoyosi Tolulope Olurin
Keyword(s):  
Financial Performance ◽  
Dividend Policy ◽  
Least Square ◽  
Manufacturing Companies ◽  
Significance Level ◽  
Wealth Maximization ◽  
Ordinary Least Square ◽  
Common Effect ◽  
Negative Effect ◽  
Positive Effect

One of the indicators of shareholders’ wealth maximization is dividend policy (DP) consistency, proxied by dividend per share (DPS) with moderating variable of company size and financial performance measured by the return on asset (ROA). The purpose of this study is to demonstrate the significance level of changes in ROA based on DPS comparing manufacturing companies in Nigeria and Kenya. The data used in this study is the use of panel data method and Convenience Sampling is applied and data analyzed by comparing the regression model, Ordinary Least Square (common effect). The results indicate that there is a significant positive effect on ROA in Kenya manufacturing companies, while Nigeria’s records insignificant negative effect as revealed by the t-statistics due to DP. These undeveloped economies’ relevant sector for growth is the manufacturing and is the focus of this study. The paper concludes by recommending that Kenya and Nigeria manufacturing companies should focus on DP.

scholarly journals CSR, NILAI PERUSAHAAN DAN KINERJA KEUANGAN PERUSAHAAN PADA INDUSTRI PERTAMBANGAN DAN MANUFAKTUR DI INDONESIA

2017 ◽  
Vol 14 (1) ◽  
pp. 89 ◽  
Author(s):  
Farah Margaretha ◽  
Chandra Gunadi Witedjo
Keyword(s):  
Control Variable ◽  
Capital Budgeting ◽  
T Test ◽  
Tobin’S Q ◽  
Analysis Model ◽  
Tobin's Q ◽  
Environmental Dimension ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

<p>This study was done in order to determine the reversible effect from company<br />CSR action on ROA and ROE, as well as to measure the company value using Tobin’s Q,<br />size and leverage also used as control variable. In order to test the impact of the variables<br />described above, 28 samples of mining and manufacturing company listed in BEI during<br />two periods are used, which is for three years long, 2009-2010. Analysis model of the<br />data used is the classical assumption, multiple regression and t test. Based on t test result<br />CSR has no effect on Tobin’s Q. CSR is also found to have no relation to ROA and ROE,<br />except for environmental dimension for which negative effect was found to ROE. The last<br />finding of this study was ROA has a positive effect on environmental and labor disclosure<br />of CSR, and no effect was found on the community dimension. ROE subsequently found to<br />have a positive effect on the labor and community disclosure, while no effect was found on<br />environmental dimension of CSR. As for that result it is recommended for companies to<br />put CSR as an investment that should be considered in the process of capital budgeting,<br />as CSR is a huge investment and still not being considered by investors and public.<br />Keywords : Corporate Social Responsibility (CSR), Corporate Financial Performance<br />(CFP), Size, Leverage, ROA, ROE, Tobin’s Q,</p>

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