scholarly journals A Hybrid Model for Addressing the Relationship between Financial Performance and Sustainable Development

2019 ◽  
Vol 11 (10) ◽  
pp. 2899 ◽  
Author(s):  
Yanfang Zhang ◽  
Mushang Lee
Keyword(s):  
Financial Performance ◽  
Operating Performance ◽  
Principal Component ◽  
Data Envelopment ◽  
Visualization Technique ◽  
Robust Principal Component Analysis ◽  
Promising Alternative ◽  
Market Participants ◽  
Performance Forecasting ◽  
The Relationship

Measuring financial performance has become an essential topic due to the potential decimating impacts on the corporation itself as well as to whole societies during financial turmoil. In order to provide an overarching description of the multidimensional nature for measuring a corporation’s operations, it is preferable to employ data envelopment analysis (DEA). Different from prior research that merely focuses on a singular DEA performance rank, this study extends it to multiple DEA specifications (i.e., it combines inputs and outputs in several different ways) so as to make judgments more complete and robust. We also execute fuzzy visualization technique (i.e., nonlinear fuzzy robust principal component analysis, NFRPCA) to represent the main characteristics of data so that non-specialists can have better access to the results. The analyzed result is then fed into the restricted Boltzmann machine (RBM) to establish a model to forecast a firm’s operating performance. Even a fraction of accuracy improvement can result in considerable future savings to a firm and investors. When examined using real cases, the model is a promising alternative for operating performance forecasting and can assist both internal and external market participants.

scholarly journals Toward Sustainable Ferry Routes in Korea: Analysis of Operational Efficiency Considering Passenger Mobility Burdens

2020 ◽  
Vol 12 (21) ◽  
pp. 8819
Author(s):  
Thi Quynh Mai Pham ◽  
Gunwoo Lee ◽  
Hwayoung Kim
Keyword(s):  
High Efficiency ◽  
Principal Component ◽  
Analysis Data ◽  
Operational Efficiency ◽  
Vital Role ◽  
Maritime Transportation ◽  
Data Envelopment ◽  
Fuzzy C Means Clustering ◽  
The Impact ◽  
The Relationship

With its long coastline, and numerous inlets and offshore islands, coastal ferry industries play a vital role in Korean maritime transportation. This study focuses on the southwestern part of Korea, Mokpo (which has the most inhabited islands and the highest proportion of elderly island residents), and aims to evaluate the impact of passengers’ mobility burdens on the efficiency of ferry routes to achieve a better service for passengers. Integrated principal component analysis–data envelopment analysis and a fuzzy C-means clustering method were applied to analyze the efficiency of ferry routes in the Mokpo area. The efficiency results indicate that longer routes do not always achieve high-efficiency scores. The proportion of general passengers appears to influence the efficiency improvements of both general and subsidiary ferry routes. These findings can assist in better comprehending the relationship between passengers’ mobility burdens and ferry route efficiencies; this will enable the authorities and ferry management departments to develop appropriate policies and strategies and to reconstruct certain features of the inefficient routes, thereby increasing operational efficiency, reducing mobility burdens, and improving the convenience of ferry travel and sustainability of Korean passenger routes.

The moderating effects of environmental risk of the industry on the relationship between corporate environmental and financial performance

2016 ◽  
Vol 17 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Natalia Semenova ◽  
Lars G. Hassel
Keyword(s):  
Financial Performance ◽  
Environmental Impacts ◽  
Environmental Risk ◽  
Environmental Performance ◽  
Energy Use ◽  
Operating Performance ◽  
Market Value ◽  
Moderating Effects ◽  
Content Type ◽  
The Relationship

Purpose – Industries differ in their environmental impacts, such as emissions, water and energy use, fuel consumption and hazardous wastes, which will have implications for how environmental performance translates to operating performance and market value at company level. By incorporating industry-specific differences of environmental impacts, this paper includes industry-level environmental risk as a moderating factor on the relationship between two indicators of corporate environmental performance (CEP) (management and policy) and corporate financial performance (profitability and market value). The paper aims to discuss these issues. Design/methodology/approach – Using panel data of US companies across all industries, the paper empirically tests a regression model, which includes an interaction effect representing both the form and strength of dependency of CEP on the environmental risk of the industry. The paper adopts the natural resource based theory to argue that financial returns are a decreasing function of CEP in high environmental impact industries, where environmental spending beyond compliance is costly and there is not much opportunity for consumer orientation. Findings – The results show that environmental management has different impacts on operating performance at high and low environmental risk of the industry (form of relationship) while environmental policy (reporting) has a stronger signal on market premium in industries with low rather than high environmental risk (strength of relationship). Differences in both form and strength of moderating effects are demonstrated. Research limitations/implications – Further research can introduce other industry-specific moderating factors, such as the disclosure maturity of the industry and the institutionalization of environmental disclosures across boarders in the industries, in order to explore the complexity of the relationship. Practical implications – The results of the paper are relevant to investors, company managers and a broad group of stakeholders when considering both industry- and company-level environmental risks. Originality/value – Previous studies have relied on controlling for industry membership. This paper uses an industry-specific environmental variable, environmental risk of the industry, to examine the form and strength of moderating effects.

PENGARUH KECAKAPAN MANAJERIAL DAN KINERJA KEUANGAN TERHADAP MANAJEMEN LABA

2018 ◽  
Vol 9 (2) ◽  
pp. 204-221
Author(s):  
Istiqomah Istiqomah ◽  
Vita Elisa Fitriana
Keyword(s):  
Earnings Management ◽  
Financial Performance ◽  
Stock Exchange ◽  
Data Envelopment ◽  
Return On Equity ◽  
Managerial Skills ◽  
Using Data ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

The purpose of the study was to examine the effect of the relationship of managerial skills and financial performance on earnings management. Sample from this study is a manufacturing company listed on the Indonesia Stock Exchange (IDX) in 2014 to 2016, and as many as 137 sample companies. Managerial skills are measured using Data Envelopment Analysis (DEA). Financial performance is measured using ROE (Return on Equity) financial ratios. While earnings management is measured by calculating discretionary accruals of modified Jones models. By using multiple regression analysis, it was found that managerial skills did not affect earnings management. Because capable managers tend not to do earnings management. Furthermore, financial performance has a positive effect on earnings management. Because when a company's performance is bad, management tends to maintain the company's reputation for not doing earnings management.

scholarly journals Innovation Efficiency in the Spanish Service Sectors, and Open Innovation

2021 ◽  
Vol 7 (1) ◽  
pp. 62 ◽  
Author(s):  
Rocío Guede-Cid ◽  
Leticia Rodas-Alfaya ◽  
Santiago Leguey-Galán ◽  
Ana I. Cid-Cid
Keyword(s):  
Comprehensive Evaluation ◽  
Principal Component ◽  
Efficiency Score ◽  
Innovation Activity ◽  
Data Envelopment ◽  
Large Dataset ◽  
Model Combining ◽  
Service Sectors ◽  
New Variables ◽  
The Relationship

This paper analyzes the relationship between efficiency and innovation activity in Spanish industrial and service sectors by introducing a new methodology framework. A new model combining principal component analysis (PCA) and data envelopment analysis (DEA) is applied in order to obtain an efficiency score. To achieve a more comprehensive evaluation, a large dataset is included, but a large number of variables compared with the number of decision-making units (DMUs) may diminish the discriminatory power of DEA. To avoid this effect, we first apply PCA to separately obtain the input and output main factors. We then apply DEA to the new variables. The PCA–DEA model allows us to identify 5 efficient sectors out of 42. If only DEA were applied, 16 sectors would turn out to be efficient. This shows that the model improves the discriminatory capability of DEA. Methodologically, this work contributes to the literature by proposing an efficiency measurement using a large number of inputs and outputs that could be applied in different fields. Likewise, this analysis allows for the evaluation and interpretation of innovation activity in the different sectors, which can be taken into account in the management and allocation of resources by institutions.

scholarly journals KPIs Reporting and Financial Performance in the Transition to Mandatory Disclosure: The Case of Italy

2020 ◽  
Vol 12 (12) ◽  
pp. 5195 ◽  
Author(s):  
Salvatore Loprevite ◽  
Domenico Raucci ◽  
Daniela Rupo
Keyword(s):  
Financial Performance ◽  
Sustainability Reporting ◽  
Global Reporting Initiative ◽  
Data Envelopment ◽  
Financial Indicators ◽  
Tobit Regression ◽  
Early Adoption ◽  
Sustainability Disclosure ◽  
The Relationship ◽  
Tobit Regression Model

European companies of public interest requested to comply with the Directive 2014/95/EU on Non-Financial Information (NFI) are allowed to fulfil the regulatory obligation following the Global Reporting Initiative (GRI) guidelines, which constitute at present the most widely spread framework for sustainability reporting. Given such prevalence, this paper examines the level of disclosure on Key Performance Indicators (KPIs) and its relationship with financial performance over the period 2016–2018 for Italian-listed companies adopting GRI guidelines to convey NFI under the Decree 254/2016. The research applies content analysis of the annual and sustainability reports to measure the disclosure index on KPIs, and Data Envelopment Analysis (DEA) to estimate the financial performance. A Tobit-regression model explores the nexus between financial performance and companies’ disclosure. Findings show a decrease in the disclosure levels in the early adoption of mandatory NFI and a significant association with the financial performance of the sampled companies. The study, assuming a comprehensive view of the financial indicators, improves our knowledge of the relationship between sustainability disclosure and financial performance and adds to the literature on the evolution of NFI in the transition from voluntary to mandatory regime.

Research on Management Engineering with Data Processing for Relationship between Equity Structures and Operating Performance — Take the Utilities Listed Companies as Example

2014 ◽  
Vol 977 ◽  
pp. 547-550
Author(s):  
Bing Jie Li ◽  
Dong Xiao Niu ◽  
Yan Lu ◽  
Hua Li Xia ◽  
Wei Bin Ding
Keyword(s):  
Data Processing ◽  
Operating Performance ◽  
Multiple Linear Regression Model ◽  
Principal Component ◽  
Listed Companies ◽  
Equity Structure ◽  
The Index System ◽  
International Experts ◽  
The Relationship ◽  
The Empirical Analysis

Rational equity structure is the key to improve the operating performance. On the basis of the basic theory of international experts, the paper selects the data of utilities listed companies, and takes the principal component analysis and multiple linear regression model to build the index system of utilities for evaluating the operating performance after a series of data processing methods, at last, conducts the empirical analysis of the relationship between equity structure and operating performance. The results show that there is no significant correlation between the proportion of the state-owned restricted shares and the company's profitability; there is a positive correlation between the proportion of outstanding shares and the company’s profitability. Accordingly, the paper proposes some recommendations on management engineering at last to improve the company’s operating performance and the efficiency of management engineering.

scholarly journals NEWS-BASED SOFT INFORMATION AS A CORPORATE COMPETITIVE ADVANTAGE

2019 ◽  
Vol 26 (1) ◽  
pp. 48-70 ◽  
Author(s):  
Ming-Fu Hsu ◽  
Te-Min Chang ◽  
Sin-Jin Lin
Keyword(s):  
Decision Making ◽  
Soft Information ◽  
Forecasting Model ◽  
Data Envelopment ◽  
Financial Indicators ◽  
Promising Alternative ◽  
Hard Information ◽  
Different Types ◽  
Performance Forecasting ◽  
Information Supply Chain

This study establishes a decision-making conceptual architecture that evaluates decision making units (DMUs) from numerous aspects. The architecture combines financial indicators together with a variety of data envelopment analysis (DEA) specifications to encapsulate more information to give a complete picture of a corporate’s operation. To make outcomes more accessible to non-specialists, multidimensional scaling (MDS) was performed to visualize the data. Most previous studies on forecasting model construction have relied heavily on hard information, with quite a few works taking into consideration soft information, which contains much denser and more diverse messages than hard information. To overcome this challenge, we consider two different types of soft information: supply chain influential indicator (SCI) and sentimental indicator (STI). SCI is computed by joint utilization of text mining (TM) and social network analysis (SNA), with TM identifying the corporate’s SC relationships from news articles and SNA to determining their impact on the network. STI is extracted from an accounting narrative so as to comprehensively illustrate the relationships between pervious and future performances. The analyzed outcomes are then fed into an artificial intelligence (AI)-based technique to construct the forecasting model. The introduced model, examined by real cases, is a promising alternative for performance forecasting.

scholarly journals Internal Control, Manager ability and Enterprise performance – Empirical Analysis Based on DEA data Envelopment Model

2021 ◽  
Vol 292 ◽  
pp. 02027
Author(s):  
Duan Huijiao
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Negative Correlation ◽  
Internal Control ◽  
Corporate Performance ◽  
Significant Negative Correlation ◽  
Data Envelopment ◽  
Control Environment ◽  
Enterprise Performance ◽  
The Relationship

Internal control has become an important part of corporate governance. This paper selects all Chinese A-share listed companies from 2015 to 2019 as samples to study the relationship between internal control and corporate performance, and to investigate the effect of managers’ ability on the process of internal control affecting corporate performance. It is found that there is a significant negative correlation between internal control defects and enterprise performance, which indicates that there are significant internal control defects, which will restrain the enterprise’s financial performance; the effectiveness of internal control operation is significantly positively correlated with enterprise performance, which shows that the operation of effective internal control helps to promote the financial performance of enterprises. When we introduce management competence as a moderating variable, we find that competent managers can improve financial performance in an effective internal control environment.

scholarly journals Entrepreneurial competencies and financial performance of farmers in South Africa

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Simone Nieuwoudt ◽  
Johannes I.F. Henning ◽  
Henry Jordaan
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Performance Indicator ◽  
Principal Component Regression ◽  
Principal Component ◽  
Ordinary Least Squares ◽  
Operating Efficiency ◽  
Least Squares Regression ◽  
Entrepreneurial Competencies ◽  
The Relationship

Aim:The main objective of this study was to explore the relationship between the entrepreneurial competencies of farmers and their financial performance. Setting: The study was conducted in South Africa among farmer clients of a commercial financial organisation.Methods: The financial performance of the farmers was calculated by means of financial ratios which were used to compile a single performance indicator: operating efficiency. The operating efficiency indicator was calculated using a financial-based data envelopment analysis. An entrepreneurial competencies instrument was used to measure the entrepreneurial competencies of the farmers. Ordinary least squares regression was used within the principal component regression framework to explore the relationship between entrepreneurial competencies and financial performance.Results: The results indicate there is a positive relationship between entrepreneurial competencies and financial performance of farmers. Each of the individual competencies also indicated positive correlation between the entrepreneurial competencies and financial performance.Conclusion: An increase in specific entrepreneurial competencies behaviour may increase the operating efficiency of the farm. Educational opportunities exist to educate farmers on the potential benefits of using entrepreneurial behaviour to their advantage (to benefit their operating efficiency). Sectors involved with agriculture, for example agricultural advisors, financial advisors and educational institutes, should emphasise the importance of utilising the competencies of farmers.

What Does Human Development Index Rating Mean in Terms of Individualism/Collectivism?

2003 ◽  
Vol 8 (2) ◽  
pp. 97-100 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno
Keyword(s):  
Human Development ◽  
Human Development Index ◽  
Principal Component ◽  
General Idea ◽  
Development Index ◽  
Low Levels ◽  
The Relationship

The authors explore an alternative way of analyzing the relationship between human development and individualism. The method is based on the first principal component of Hofstede's individualism index in the Human Development Index rating domain. Results suggest that the general idea that greater wealth brings more individualism is only true for countries with high levels of development, while for middle or low levels of development the inverse is true.

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