scholarly journals Market Risk and Financial Performance of Non-Financial Companies Listed on the Moroccan Stock Exchange

Risks ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 20
Author(s):  
Diby François Kassi ◽  
Dilesha Nawadali Rathnayake ◽  
Pierre Axel Louembe ◽  
Ning Ding
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Market Risk ◽  
Fixed Effects Model ◽  
Financial Leverage ◽  
Return On Equity ◽  
Positive Effects ◽  
Book To Market Ratio ◽  
The Difference

This study examines the effect of market risk on the financial performance of 31 non-financial companies listed on the Casablanca Stock Exchange (CSE) over the period 2000–2016. We utilized three alternative variables to assess financial performance, namely, the return on assets, the return on equity and the profit margin. We used the degree of financial leverage, the book-to-market ratio, and the gearing ratio as the indicators of market risk. Then, we employed the pooled OLS model, the fixed effects model, the random effects model, the difference-GMM and the system-GMM models. The results show that the different measures of market risk have significant negative influences on the companies’ financial performance. The elasticities are greater following the degree of financial leverage compared with the book-to-market ratio and the gearing ratio. In most cases, the firm’s age, the cash holdings ratio, the firm’s size, the debt-to-assets ratio, and the tangibility ratio have positive effects on financial performance, whereas the debt-to-income ratio and the stock turnover hurt the performance of these non-financial companies. Therefore, decision-makers and managers should mitigate market risk through appropriate strategies of risk management, such as derivatives and insurance techniques.

scholarly journals Market Risk and Financial Performance of Non-financial Companies Listed on the Moroccan Stock Exchange

2019 ◽  
Author(s):  
Diby François Kassi ◽  
Dilesha Nawadali Rathnayake ◽  
Akadje Jean Roland Edjoukou
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Market Risk ◽  
Risk Indicators ◽  
Fixed Effects Model ◽  
Financial Leverage ◽  
Return On Equity ◽  
Book To Market Ratio ◽  
The Difference

This study examines the effect of market risk on the financial performance of 31 non-financial companies listed on the Casablanca Stock Exchange (CSE) over the period 2000-2016. We utilize three alternative variables to assess financial performance, namely return on assets, return on equity and profit margin. Next, we use the degree of financial leverage, the book-to-market ratio, and the gearing ratio as market risk variables. Besides, we employ the pooled OLS model, the fixed effects model, the random-effects model, the difference GMM and the system GMM models. The results show that market risk indicators have a negative and significant influence on the companies' financial performance. The elasticities are greater following the book-to-market ratio compared to the degree of financial leverage and the gearing ratio, respectively. In most cases, the firm size, the tangibility ratio, and the cash holdings ratio have a positive effect on financial performance, whereas the firms' age, the debt-to-income ratio, stock turnover, and leverage hurt the performance of these non-financial companies. Therefore, decision-makers and managers should mitigate market risk through appropriate strategies of risk management, such as derivatives and insurance techniques.

KINERJA FINANSIAL PERUSAHAAN YANG MELAKUKAN AKUISISI

2015 ◽  
Vol 11 (2) ◽  
pp. 48 ◽  
Author(s):  
Elok Sri Utami
Keyword(s):  
Financial Performance ◽  
Return On Investment ◽  
Activity Ratio ◽  
Stock Exchange ◽  
Return On Equity ◽  
Total Debt ◽  
Before And After ◽  
Equity Ratio ◽  
The Difference ◽  
Firm Activity

This study attempts to examine empirical evidence of the firms’ financial performances conducting acquisition at the Indonesian Stock Exchange. A sample of 22 firms undertaking acquisition during 2007-20010 is examined. The t-test for mean difference is employed to examine the performance for the period prior to and after the acquisition. The results show that the firms’ liquidity ratio is not significantly different for the periods before and after acquisition. Total debt to total assets ratio and total debt to equity ratio are significantly different. In particular, the average of these two ratios is higher in the period after the acquisition. This study also documents that the firm activity ratio, measured as total assets turnover, is indifferent between the periods. In addition, the firms’ return on investment and return on equity is lowering after acquisition and the difference is significant. Keywords: acquisition, financial performance,Indonesian Stock Exchange

scholarly journals Financial Leverage and Firms’ Performance: Empirical Investigation of KSE-100 Index

ETIKONOMI ◽  
2018 ◽  
Vol 17 (1) ◽  
pp. 45-56 ◽  
Author(s):  
Farhan Ahmed ◽  
Iqra Awais ◽  
Muhammad Kashif
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Optimal Level ◽  
Annual Data ◽  
Financial Leverage ◽  
Return On Assets ◽  
Return On Equity ◽  
Listed Firms ◽  
The Impact

Capital generation to fund everyday operations and long-term expansions is a constant concerning element in the corporate world. This study aims to investigate the optimal level of capital structure that firms can adopt to improve their financial performance given the industry dynamics and economic circumstances of the country. Using Hausman’s specification test, annual data for the period 2005 – 2014 of Karachi Stock Exchange (KSE) 100 index listed securities has been collected to analyze the impact of financial leverage on the firms’ performance. Return on assets, return on Equity, and TOBIN’s Q are the proxies of financial performance analyzed against financial leverage for the KSE 100 index listed firms. The finding of the paper indicates that capital structure, leverage, interest cover and sales growth as most significant variables impacting firms’ profitability.   DOI: 10.15408/etk.v17i1.6102

Analisis Perbedaan Abnormal Return dan Kinerja Keuangan Perusahaan Sebelum dan Sesudah Merger atau Akuisisi

2014 ◽  
Vol 6 (2) ◽  
pp. 18-38
Author(s):  
Steffi Aprilda Natasya Lim ◽  
Suhajar Wiyoto
Keyword(s):  
Financial Performance ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Financial Reports ◽  
Asset Return ◽  
Return On Equity ◽  
Before And After ◽  
The Difference

The objective of this research is to examine the difference of abnormal return, and companies’ financial performance, before and after merger or acquisition. The companies’ financial performances are projected by financial ratios, which are return on asset and return on equity. This research is expected to help economic actors in making economic decisions related to merger and acquisition. The samples in this study are 11 companies that listed in Indonesia Stock Exchange (Bursa Efek Indonesia) in the year 2010-2011, except financial sectors and done corporate action merger or acquisition. The sample in this study determined based on purposive sampling. Data used in this study is secondary data such as annual reports or financial reports. The results from this study are (1) there is no difference of abnormal return before and after merger or acquisition (2) there is no difference of companies’ financial performance that projected by return on asset before and after merger or acquisition (3) there is a difference of companies’ financial performance that projected by return on equity before and after merger or acquisition. Keywords: abnormal return, return on asset, return on equity, merger, acquisition

scholarly journals Pengaruh Financial Leverage Terhadap Kinerja Keuangan (Studi Pada Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

2018 ◽  
Vol 3 (3) ◽  
pp. 45
Author(s):  
Hana Nopitasari ◽  
Ermina Tiorida ◽  
Ira Siti Sarah
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
P Value ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Return On Equity ◽  
Equity Ratio

The main objective of this study is to determine the effect of financial leverage on financial performance of the 39 selected property and real estate companies listed in Indonesia Stock Exchange over a period of five years (2011-2015). This work employed two financial leverage for the independent variables such as: debt ratio (DR) and debt to equity ratio (DER) in determining their effect on financial performance such as return on equity (ROE), sales growth and price earning ratio (PER) as a dependent variable. The secondary data were obtained from the financial statement (comprehensive income statement and statement of financial position) of the selected companies quoted from the Indonesia Stock Exchange (IDX). Descriptive statistical test, simple linear regression test and hypothesis test are used to analyze the data of this research. The results of the analysis show that there is a positive and insignificant influence between financial leverage on the financial performance of 39 companies, proven by hypothesis testing of t-value (1.610) < t-table (1.65481) and P-value of 0.109, while the value of regression coefficient of financial performance of 0.008 Tujuan utama penelitian ini adalah untuk mengetahui pengaruh financial leverage terhadap kinerja keuangan 39 perusahaan properti dan real estate terpilih yang terdaftar di Bursa Efek Indonesia selama lima tahun (2011-2015). Penelitian ini menggunakan dua leverage keuangan untuk variabel independen seperti debt ratio (DR) dan debt to equity ratio dalam menentukan pengaruhnya terhadap kinerja keuangan seperti return on equity (ROE), pertumbuhan penjualan dan price earning ratio (PER) sebagai variabel dependen. Data sekunder diperoleh dari laporan keuangan (laporan laba rugi komprehensif dan laporan posisi keuangan) dari perusahaan terpilih yang dikutip dari Bursa Efek Indonesia (BEI). Uji statistik deskriptif, uji regresi linier sederhana dan uji hipotesis digunakan untuk menganalisis data penelitian ini. Hasil analisis menunjukkan bahwa terdapat pengaruh positif dan signifikan antara financial leverage terhadap kinerja keuangan dari 39 perusahaan. Hal ini dibuktikan dengan pengujian hipotesis yang menghasilkan nilai t hitung (1.610) < t-table (1.65481) dan P-value sebesar 0.109, dengan nilai koefisien regresi kinerja keuangan sebesar 0,008.

scholarly journals Examining the Economic Interaction between Liquidity and Firms’ Financial Performance: Evidence from the Ghana Stock Exchange

2020 ◽  
pp. 34-46
Author(s):  
Joseph Antwi Baafi ◽  
John Kwame Duodu ◽  
Eric Effah Sarkodie ◽  
Williams Kwasi Boachie
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Interactive Effects ◽  
Return On Equity ◽  
Positive Effects ◽  
Return On Capital ◽  
Economic Interaction ◽  
Ghana Stock Exchange ◽  
Share Value

This study examined the economic interaction between liquidity and financial performance of manufacturing firms listed on Ghana Stock Exchange (GSE). Specifically, the study sought to examine the relationship between liquidity as measured by current ratio, quick ratio and cash ratio and firms’ financial performance as measured by return as assets, return on equity and return on capital employed and determine the interactive effects on share value of firms. Data extracted from the audited and published annual reports of twenty-one (21) firms for the period 2008 to 2019 was used for the study. The study used correlation analysis for relationship and ANCOVA modeling for interactive effects. The study found that there was a weak positive statistically significant relationship between return on assets and measures of liquidity; there was a weak positive statistically insignificant relationship between return on equity and measures of liquidity; there was a weak negative statistically insignificant relationship between return on capital employed and measures of liquidity. The study also found positive effects of liquidity and performance on share value. However, the magnitude of interactive effect of liquidity and firm’s performance was much higher that the single effects. Based on the findings, the study recommended among others that authorities in listed manufacturing firms in Ghana should try and maintain an ideal level of liquidity that can meet their firms’ operational needs

scholarly journals Comparative Analysis of Company Financial Performance Between Sub Sectors in The Consumer Goods Industry in Indonesia Before and During The Covid-19 Pandemic

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Andi Wijayanto ◽  
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Stock Exchange ◽  
Annual Reports ◽  
Return On Equity ◽  
Food And Beverages ◽  
Household Food ◽  
Analysis Technique ◽  
Significant Difference ◽  
The Difference

During the Covid-19 pandemic, some sectors are predicted to grow while many other sectors slump. This study aims to prove the difference in financial performance between companies in the Food and Beverages, Tobacco Manufacturers, Pharmaceuticals, Cosmetics and Household, and Houseware Sub-Sectors during the Covid-19 pandemic. Measurement of financial performance using the ratio of Return on Assets (ROA) and Return on Equity (ROE). The sample was determined purposively and 44 companies were selected as samples. Methods of data collection using documentation techniques. The research data was obtained from the company's financial statements, annual reports, summary of IDX listed companies, and the IDX Facts Book. Data obtained from the Indonesia Stock Exchange. The data analysis technique used Multivariate Analysis of Variance (MANOVA). Based on the results of data analysis, it can be concluded that the financial performance of the Cosmetics and household, Food and Beverages, and Tobacco Manufacturers sub-sector companies decreased during the Covid-19 Pandemic. The Houseware and Pharmaceuticals sub-sector achieved a significant increase during the Covid-19 Pandemic. There is a significant difference between the financial performance of the Cosmetics and household, Food and Beverages, Houseware, Pharmaceuticals, and Tobacco Manufacturers sub-sector companies listed on IDX before and during the Covid-19 Pandemic.

scholarly journals Impact of Capital Structure on Financial Performance: A Study of Select Automobile Companies in India

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Rahul Sarkar ◽  
Ram Prahlad Choudhary
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Fixed Effects ◽  
Wald Test ◽  
Panel Regression ◽  
Fixed Effects Model ◽  
Short Term ◽  
Hausman Test ◽  
Return On Equity ◽  
Random Effects Models

There exists a debate as to whether capital structure variables and financial performance are associated or not. This study aims to understand the movement of shareholders return in the context of capital structure composition. With fifteen years data and sixteen automobile companies, both pooled regression and panel regression (Fixed effects and Random effects models) have been used and the best fitted model have been selected through Hausman test and Wald Test. The best fitted model was found to be the Fixed Effects model and according to that equity and short-term debt affects return on equity (ROE) positively and negatively respectively and both are highly statistically significant. The model explained almost 57% variation in ROE with no autocorrelation problem in error term. The study is of high significance to the investors as well as firms for decision making as the study reveals ROE is fairly explained by Capital Structure composition.

scholarly journals Applying the CAMEL model to assess performance of commercial banks: empirical evidence from Vietnam

2020 ◽  
Vol 15 (2) ◽  
pp. 177-186
Author(s):  
Anh Huu Nguyen ◽  
Hang Thu Nguyen ◽  
Huong Thanh Pham
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
Fixed Effects Model ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Asset Quality ◽  
The Impact

The paper aims to investigate the impact of CAMEL components on the financial performance of commercial banks in Vietnam. Three econometric models are built using four CAMEL’s crucial indicators as independent variables (capital adequacy, asset quality, management effectiveness, bank liquidity) and return on assets (ROA), return on equity (ROE), and net interest margin (NIM) as proxies for commercial banks’ financial performance – dependent variables. The research sample includes 31 Vietnamese commercial banks over the 6-year period, from 2013 to 2018. The results show a better fit of the fixed effects model (FEM) in terms of the research methodology compared to the ordinary least squares (OLS) and random effects model (REM). It was found that capital adequacy, asset quality, liquidity and management efficiency affect the performance of Vietnamese commercial banks. Acknowledgement This research is funded by National Economics University (NEU), Hanoi, Vietnam. The authors thank anonymous referees for their contributions and the NEU for funding this research.

scholarly journals Pengaruh Financial Leverage Terhadap Kinerja Keuangan (Studi Pada Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

2018 ◽  
Vol 3 (3) ◽  
pp. 45-56
Author(s):  
Hana Nopitasari ◽  
Ermina Tiorida ◽  
Ira Siti Sarah
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
P Value ◽  
Financial Leverage ◽  
Return On Equity ◽  
Income Statement ◽  
Equity Ratio

The main objective of this study is to determine the effect of financial leverage on financial performance of the 39 selected property and real estate companies listed in Indonesia Stock Exchange over a period of five years (2011-2015). This work employed two financial leverage for the independent variables such as: debt ratio (DR) and debt to equity ratio (DER) in determining their effect on financial performance such as return on equity (ROE), sales growth and price earning ratio (PER) as a dependent variable. The secondary data were obtained from the financial statement (comprehensive income statement and statement of financial position) of the selected companies quoted from the Indonesia Stock Exchange (IDX). Descriptive statistical test, simple linear regression test and hypothesis test are used to analyze the data of this research. The results of the analysis show that there is a positive and insignificant influence between financial leverage on the financial performance of 39 companies, proven by hypothesis testing of t-value (1.610) < t-table (1.65481) and P-value of 0.109, while the value of regression coefficient of financial performance of 0.008.

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