Company Internal Factors and Their Influences on Financial Performance

This research aims to systematically, actual, and accurately explain the facts and characteristics of the company and their effect on financial performance. Data in the form of time-series data from 2015-2019 and cross-section data collected from the financial statements of automotive companies listed on the Indonesia Stock Exchange then obtained nine companies that meet the criteria. The independent variables are Firm Size, Leverage, Liquidity, and the dependent variable is financial performance as proxied by Return On Equity (ROA). The research used panel data techniques; Common Effect Model, Fixed Effect Model, and Random Effect Model. The results show that Firm Size partially has a negative and significant effect, meaning that the greater the assets owned by the company, the more complex the agency problems faced. The partial leverage variable has a negative and significant effect, means that the use of relatively high debt will cause fixed costs in the form of interest expenses and loan principal installments to be paid, the greater the fixed costs. The liquidity variable partially has a positive and insignificant effect. This means that changes that occur in both the number of current assets or current liabilities affect increasing profits so that the increase in Liquidity (CR) or the level of liquidity affects changes in increasing company performance (ROA).

Download Full-text

GREEN GROWTH: IMPORTANT DETERMINANTS

The Singapore Economic Review ◽

10.1142/s0217590815500149 ◽

2015 ◽

Vol 60 (02) ◽

pp. 1550014 ◽

Cited By ~ 5

Author(s):

GHULAM SAMAD ◽

RABIA MANZOOR

Keyword(s):

Time Series Data ◽

Random Effect ◽

Random Effect Model ◽

Developed Countries ◽

Fixed Effect Model ◽

Least Square ◽

Series Data ◽

Market Size ◽

Green Growth ◽

Effect Model

We discuss the important determinants requires to develop green patents, which eventually reinforce green growth. The theoretical framework examined four elements, the enforcement of intellectual property rights (IPRs), research and development (R&D) expenditures, market size and environmental taxations. We empirically test the green patent data to test the interrelationship of green patents representing the green innovations and IPR, R&D expenditures, market size and environmental taxations. Keeping in view the availability of the data we studied 11 developed countries, which are Austria, Australia, Canada, France, Japan, Finland, Germany, Sweden, U.K and U.S. The panel data can better handled the technological change rather than the pure cross section or pure time series data. Therefore, this study used the Pooled Least Square estimation techniques like Fixed Effect Model (FEM) and random effect model (REM) for both balance period of 1995–2010 and unbalanced period from 1995–2010. We only interpreted the balance period results depicting the enforcement of IPRs has negative and significant impact on green patents while the R&D expenditures, market size and environmental taxations has positive and significant impact on the green patents e.g. development of green innovations. We believe that the enforcement of explanatory variables will eventually acquire green growth.

Download Full-text

Testing The Warrants Mispricing and Their Determinants: The Panel Data Models

Global Review of Islamic Economics and Business ◽

10.14421/grieb.2017.052-05 ◽

2017 ◽

Vol 5 (2) ◽

pp. 118

Author(s):

Muhammad Rizky Prima Sakti ◽

Abdul Qoyum

Keyword(s):

Panel Data ◽

Stock Return ◽

Time Series Data ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Daily Basis ◽

Series Data ◽

Effect Model ◽

The Impact

This paper empirically studied the impact of several variables such as moneyness, stock return, maturity, and volatility on the warrant mispricing. We selected 4 companies listed in Bursa Malaysia such as MHC Plantations Bhd, MKH Bhd, YFG Bhd, and UNISEM to investigate the mispricing of warrants. Subsequently, panel time series data employed with daily basis from 30 June 2010 until 30 June 2013. The Black-Scholes Option Pricing Model (BSOPM) used to determine the mispricing of warrant. Several panel data techniques employed in this study such as pooled-OLS, fixed effect model (FEM), and random effect model (REM). In turn, we found that FEM is well explained the determinants of warrant mispricing. Thus, empirical results suggest that moneyness, maturity, and volatility are positively and significantly explained the mispricing of warrant, while stock return does not give an impact toward the warrant mispricing. The BSOPM is consistently mispricing the warrant either in-the-money (ITM) or out-the money (OTM) warrants. The market is not efficient on the warrants traded for four companies observed

Download Full-text

Effects of Capital Structure on Financial Performance of Insurance Companies in Nepal

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v10i3.17674 ◽

2020 ◽

Vol 10 (3) ◽

pp. 35

Author(s):

Bishnu Prasad Bhattarai

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Annual Report ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Insurance Companies ◽

Return On Assets ◽

Total Debt ◽

Effect Model

The study has examined the effects of capital structure on financial performance of insurance companies in Nepal. Data were collected from the annual report of the respective insurance companies' web site. The panel data of 14 Nepalese insurance companies from 2007/08 to 2015/16, leading to a total of 126 observations. The data were analyzed using pooled OLS model, random effect model and fixed effect model. The study has been return on assets as dependent variable whereas total debt ratio, equity to total assets, leverage, firm size, liquidity ratio and assets tangibility are independent variables. The result concluded that equity to total assets, leverage, and assets tangibility have effects the financial performance in Nepalese insurance companies' cases.

Download Full-text

Is MGNREG Scheme Complementary to Fishing Activities?

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v5i1.42 ◽

2016 ◽

Vol 5 (1) ◽

pp. 47-53

Author(s):

Chiranjib Neogi ◽

Kamal Ray ◽

Ramesh Chandra Das

Keyword(s):

Freshwater Fish ◽

Rainwater Harvesting ◽

Random Effect ◽

Random Effect Model ◽

Fixed Effect Model ◽

Fixed Effect ◽

Series Data ◽

Component Part ◽

Indian States ◽

Effect Model

Freshwater fish output is taken as a proxy variable for empirical assessment of indirect benefits in terms of enhanced quantity of freshwater fish (output) cultivation. It is not unlikely to assess empirically the productivity of subsidized public scheme when rural development or rural asset generations are underlined in the said scheme, MGNREG Act, 2005. Rainwater harvesting is a major component part of the scheme since about 49.5 per cent of the total fund is already utilized on water conservation and obviously it has an impact on the cultivation of freshwater fish output. Time series data on annual expenditure on MGNREG and corresponding freshwater fish output at the state level are taken during the period 2006-07 to 2013-14 for 16 major Indian states. Fixed effect model and random effect models are being applied and the Hausman specification test suggests that fixed effect model is more appropriate than random effect model. Significant differences among the intercepts of the selected states are revealed as per F test. The results of fixed effect panel regression establish that fish output is enhanced by 0.000257 thousand tones or 0.26 tones if MGNREG expenditure rises by one crore or 10 million rupees.

Download Full-text

Pengaruh Board Diversity terhadap Manajemen Laba

Journal of Applied Accounting and Taxation ◽

10.30871/jaat.v4i2.908 ◽

2019 ◽

Vol 4 (2) ◽

pp. 223-233

Author(s):

Dewi Fatimah

Keyword(s):

Earnings Management ◽

Stock Exchange ◽

Random Effect ◽

Gender Diversity ◽

Random Effect Model ◽

Fixed Effect Model ◽

Ordinary Least Squares ◽

Least Squares Regression ◽

Board Diversity ◽

Effect Model

This study examines the effect on board diversity against earning management. The used samples are non-financial companies listed on the Indonesia Stock Exchange from 2010 to 2013. The data collection method using a purposive sampling method and data used are panel data. The regression used is ordinary least squares regression (OLS) with a fixed-effect model approach and the random effect model. The results showed that board diversity proxied by gender, age, education, and tenure no significant effect on earnings management, whereas the diversity proxy board with tenure significant effect on earnings management. Earnings management using discretionary accruals proxy and use a proxy for board gender diversity, age, minority education, and tenure.

Download Full-text

COMPARISON OF VILLAGE DEVELOPMENT BEFORE AND AFTER VILLAGE FUND IMPLEMENTATION IN NAGAN RAYA DISTRICT

JURNAL EKONOMI DAN BISNIS ISLAM ◽

10.32505/j-ebis.v6i1.2605 ◽

2021 ◽

pp. 18-35

Author(s):

Arroyyan Ramly

Keyword(s):

Time Series Data ◽

Random Effect ◽

Random Effect Model ◽

Secondary Data ◽

Primary Data ◽

Series Data ◽

P Value ◽

Analysis Method ◽

Effect Model ◽

The Village

This study aims to analyze and see the effectiveness of the distribution of the use of village funds in Kuala Subdistrict, Nagan Raya Regency and its relationship with poverty levels. The data used is in the form of time series data from 2015 to 2018 which is collected through primary and secondary data. Primary data were obtained by directly visiting villages in the Kuala sub-district. Meanwhile, secondary data were obtained from the website of the Central Statistics Agency (BPS), document review, articles related to the object of research. This study conducted observations of 10 villages as a sample of 17 villages in Kuala District. The analysis method uses panel data regression with the random effect model (REM) analysis method. From the regression results of the random effect model, it was found that the village fund variable had a positive and significant effect on poverty with a probability of 0.0000 = p-value α = 5%. Then the village fund allocation variable has a significant negative effect on poverty with a probability of 0.0000 = p-value α = 5%. This means that adding 1% of village funds or increasing village funds will reduce poverty in Kuala Subdistrict, Nagan Raya Regency.

Download Full-text

The Influence Of Profitability, Asset Tangibility, Firm Size, Liquidity, And Agency Conflict Toward Capital Structure On Food And Beverage Companies Listed In Indonesia Stock Exchange Period 2014-2017

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v8i2.8293 ◽

2020 ◽

Vol 8 (2) ◽

pp. 1

Author(s):

Erika Jimena Arilyn

Keyword(s):

Capital Structure ◽

Firm Size ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Sampling Technique ◽

Agency Conflict ◽

Effect Model ◽

Food And Beverage ◽

The Capital Structure

This study is conducted in order to know whether profitability, asset tangibility Please do not firm size, liquidity, and agency conflict influence the capital structure. This study is also would compare result of the previous researchers within this research. Sample of this research is food and beverage companies that listed in Indonesia Stock Exchange for period 2014 – 2017 and publish its annual report which available to be accessed by public. Research method used in this paper is quantitative method. Purposive sampling is used as a sampling technique, where nine companies met the criteria and were analyzed using descriptive statistic and panel data regression with random effect model to test the hypotheses. Results of this study indicate that profitability, liquidity, and agency conflict influence the capital structure, while asset tangibility and firm size do not influence the capital structure.

Download Full-text

The Influence Of Profitability, Asset Tangibility, Firm Size, Liquidity, And Agency Conflict Toward Capital Structure On Food And Beverage Companies Listed In Indonesia Stock Exchange

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v8i1.7792 ◽

2020 ◽

Vol 8 (1) ◽

pp. 23

Author(s):

Erika Jimena Arilyn

Keyword(s):

Capital Structure ◽

Firm Size ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Sampling Technique ◽

Agency Conflict ◽

Effect Model ◽

Food And Beverage ◽

The Capital Structure

Download Full-text

The Relationship between environmental Financial accounting practices and Financial performance of industrial listed companies in Palestine Stock Exchange

Addaiyan Journal of Arts, Humanities and Social Sciences - Volume-1: Issue-10 (December, 2019) ◽

10.36099/ajahss.3.10.2 ◽

2021 ◽

pp. 12-31

Author(s):

Nedal Fareed Abdallah

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Listed Companies ◽

Least Square ◽

Financial Accounting ◽

Listed Firms ◽

Effect Model ◽

The Relationship

The research aimed to investigate the applicability of environmental financial accounting practices in the industrial listed companies in Palestine Exchange and to examine the relationship between the disclosure level of environmental financial accounting practices on the company’s financial performance. The research adopted the descriptive-analytical approach, and the analysis method involved a content analysis of the annual financial reports data which were collected from Industrial listed firms on the Palestine Stock Exchange for the period from 2015 to 2019, including the firms disclosed and not disclose EFAP. Ordinary least square (OLS), fixed effect model (FEM), and random effect model (REM) were employed for processing the data. The results reveal that there is a relationship between the EFAP and financial performance. In addition, there is a difference in financial performance between the group of firms disclosed and not disclosed EFAP. Based on the findings, some recommendations are given for motivating EFAP in the listed firms for improving financial performance.

Download Full-text

PENGARUH EXECUTIVE INCENTIVE, FIRM SIZE, DAN LEVERAGE TERHADAP EARNINGS MANAGEMENT PADA PERUSAHAAN LQ-45 YANG TERDAFTAR DALAM BURSA EFEK INDONESIA PERIODE 2015-2018

Paradigma ◽

10.33558/paradigma.v18i2.2938 ◽

2021 ◽

Vol 18 (2) ◽

pp. 62-72

Author(s):

Nadhila Ellyane Ardaputri ◽

Dikdik Saleh Sadikin

Keyword(s):

Regression Analysis ◽

Earnings Management ◽

Multiple Regression Analysis ◽

Firm Size ◽

Sampling Method ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Effect Model ◽

Positive Effect

This study aims to determine the effect of Executive Incentive, Firm Size, and Leverage on Earnings Management. The object of research in this study is the LQ-45 company listed on the Indonesia Stock Exchange (BEI) in the 2015-2018 period. This research uses purposive sampling method so that 27 companies are obtained with a total of 97 observations after outliers. This study uses a random effect model and multiple regression analysis used in hypothesis testing. This study provides results that the executive incentive LQ-45 company does not affect earnings management; firm size has a positive effect on earnings management; and leverage has no effect on earnings management.

Download Full-text