scholarly journals Analysis of Risk Factors Affecting Firms’ Financial Performance—Support for Managerial Decision-Making

2019 ◽  
Vol 11 (18) ◽  
pp. 4838 ◽  
Author(s):  
Nicoleta Bărbuță-Mișu ◽  
Mara Madaleno ◽  
Vasile Ilie
Keyword(s):  
Decision Making ◽  
Financial Performance ◽  
Labour Productivity ◽  
Annual Data ◽  
Managerial Decision ◽  
Dynamic Interactions ◽  
Return On Equity ◽  
Vector Autoregressive ◽  
Factors Affecting ◽  
Financial Variables

This paper aims to investigate how financial variables and exogenous crises influence firms’ financial performance, and how these factors may help managers in decision-making to increase their firm’s wealth. The dynamic interactions among variables were studied by applying a panel vector autoregressive model using annual data for a sample of non-financial firms from European countries. Results indicate that liquidity, leverage and productivity positively affect firm performance, while solvency and asset turnover are positive and statistically significant only in the case of return on equity. Labour productivity induces that firms tend to display larger efforts to keep financial performance in face of a crisis, considering that the crisis reveals a negative statistical impact over return on assets.

scholarly journals The Impact of Economic Crisis on the Financial Performance of the European Companies

Ekonomika ◽  
2019 ◽  
Vol 98 (2) ◽  
pp. 6-18
Author(s):  
Nicoleta Barbuta-Misu
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Panel Data Analysis ◽  
Labour Productivity ◽  
Business Environment ◽  
Financial Accounting ◽  
Annual Data ◽  
Factors Affecting ◽  
Financial Firms ◽  
The Impact

Financial-accounting information plays an important role in assessing and forecasting firms’ financial performance. But besides that, there are other external factors affecting the firm’s performance, such as the economic and financial crisis that causes imbalances over the economy and affect the business environment. Thus, based on financial statements data, in this paper, the determinants of financial performance are examined and also the impact of financial crisis on these factors is analysed using the fixed and random effects panel estimators. For this research it was used a sample of non-financial firms from European countries considering annual data from 2006 until 2015. The results achieved by panel data analysis show that crisis exerts a significant positive effect over financial performance as well as liquidity, assets turnover and labour productivity inducing that firms tend to do higher efforts to keep financial performance in face of a crisis. Financial performance is significantly and negatively influenced by leverage independently of the crisis effect showing that return on assets is lower than average interest rate.

scholarly journals The Effects of Green Banking Practices on Financial Performance of Listed Banking Companies in Bangladesh

2020 ◽  
pp. 120-128
Keyword(s):  
Financial Performance ◽  
Financial Incentive ◽  
Vital Role ◽  
Data Set ◽  
Asset Return ◽  
Return On Equity ◽  
Financial Variables ◽  
Green Finance ◽  
Operational Activities ◽  
The Relationship

This study examines the effects of green banking practices on the financial performance of banks listed in the DSE of Bangladesh covering the period from 2011 to 2020. To move the economy on a sustainable path green banking practices is essential. Green banking practice is a way of contributing environmental and economical performance in the community by providing green finance and initiating green costs in its various sectors, it takes an important part to raise an organization’s financial performance through diminishing costs. Green banking is becoming a key issue in the whole world especially in developing countries like Bangladesh. This has been theorized by economists that there is a financial incentive if there is a number of practice in green banking. In this arena, a proactive role can be played by banks besides its operational activities known as the journey of renovation for a greener economy by participating in green finance. The aim of this study is to empirically find the relationship between green banking practices and banks' financial performance by using the panel data set, taking financial variables like return on asset, return on equity, and market value to proxy the banks’ performance, and employing green banking practice variables like green cost and volume of the risk management committee. Finally, this study finds that there is a positive relationship between green banking practices and financial performance. The findings generated from this study can be a proper guideline for the bank regulators to take effective decisions regarding environmental issues and thereby make a social contribution, and after all, play a vital role in economic growth. The practitioners, governments, decision-makers, academicians, and future researchers can use this study as a policy dialog.

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

scholarly journals Determining the impact of financial performance factors on bankruptcy risk: an empirical study of listed real estate companies in Vietnam

2019 ◽  
Vol 16 (3) ◽  
pp. 307-318 ◽  
Author(s):  
Van Cong Nguyen ◽  
Thi Nga Nguyen ◽  
Thi Tu Oanh Le ◽  
Trong Than Nguyen
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Bankruptcy Risk ◽  
Return On Equity ◽  
Factors Affecting ◽  
Performance Factors ◽  
Operating Profit ◽  
Business Efficiency ◽  
The Impact

The risk of bankruptcy is affected by many different factors. Therefore, identifying the groups of factors affecting bankruptcy risks, especially financial performance factors, are important and necessary. The study focused on the impact of financial performance on the bankruptcy risk of real estate companies listed on Vietnam’s stock exchange. Research data were collected from 44 real estate companies listed on Vietnam’s stock exchange from 2011 to 2017 with 308 observations. The study was conducted by the quantitative method based on the logistic regression model with the help of SPSS 25 specialized software. The research results show that Return on Assets (ROA), Return on Equity (ROE) and Total Asset Turnover (TAT) have significant reverse effects on bankruptcy risk, while Operating Profit Margin (OPM) is not a relevant factor. The accuracy rate of the overall predictive model is 90.9%. This study extends the scope of literature on the impact of financial performance on the bankruptcy risk of real estate companies. Moreover, this study offers the model of bankruptcy risk prediction of the listed real estate companies in Vietnam and recommends effective solutions to improve business efficiency, limit and prevent financial risks for listed real estate companies in Vietnam.

scholarly journals A Study Of The Role Indian Accountants In Managerial Decision Making

2011 ◽  
Vol 3 (12) ◽  
Author(s):  
Melkote K. Shivaswamy ◽  
R. S. Rathinasamy
Keyword(s):  
Decision Making ◽  
New Product Introduction ◽  
Management Support ◽  
Product Introduction ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Factors Affecting ◽  
Top Management Support ◽  
Decision Variables ◽  
Significant Factors

This paper studies the extent of participation of accountants in the managerial decision making process in India. In general, accountants had the most influence over decisions relating to management information systems (MIS), financing, production, resource allocation, new product introduction and discontinuance of old products. They had the least influence over decisions relating to marketing and personnel. For some of the decision variables studied, professional experience and size of firm were significant factors affecting responses. Factor and cluster analyses identified two distinct factors/clusters: a participation factor/cluster consisting of eight of the nine participatory variables studied, and a MIS-budgeting factor/cluster consisting of usefulness of the budget, involvement in MIS decisions, and the level of top management support.

Application of Technique for Order Preference by Similarity to Ideal Solution Multi-Criteria Decision-Making Method for Financial Performance Evaluation: A Case Study of Services Sector in Malaysia

2019 ◽  
Vol 16 (12) ◽  
pp. 4965-4969
Author(s):  
Norasyikin Abdullah Fahami ◽  
Farah Waheeda Azhar ◽  
Zati Halwani Abd Rahim ◽  
Hilwana Abd Karim ◽  
Zati Siti Khatijah Nor Abdul Rahim
Keyword(s):  
Decision Making ◽  
Financial Performance ◽  
Financial Ratios ◽  
Multi Criteria Decision Making ◽  
Ideal Solution ◽  
Return On Equity ◽  
Services Sector ◽  
Order Preference ◽  
Equity Ratio ◽  
Topsis Approach

This paper aims to evaluate financial performance of companies from services sector in Malaysia using TOPSIS multi-criteria decision-making method. Financial data of 10 companies in 2017 are retrieved from DataStream. For many years, financial ratios are used to analyse financial performance of a companies. However, some studies indicate that traditional ratio analysis is insufficient to measure firm’s financial performance. Thus, this paper applies Technique for order Preference by Similarity to ideal Solution (TOPSIS) to obtain a more comprehensive result. This TOPSIS approach which involves seven step utilizes financial ratios such as current ratio, acid test ratio, debt ratio, debt to equity ratio, return on asset (ROA), return on equity (ROE) and earnings per share (EPS) as criteria to evaluate the companies’ financial performance. The ultimate finding of this study is the ranking of the companies which also suggest the investor on which companies to invest based on their financial performance. The results from this research are found to be consistent with the analysis by various investment agencies. Thus, this approach can be used as an alternative to the traditional valuation that has been used before.

scholarly journals Determinants of Return on Equity in U.S. Local Farm Supply and Grain Marketing Cooperatives

2007 ◽  
Vol 39 (1) ◽  
pp. 201-210 ◽  
Author(s):  
Scott Boyd ◽  
Michael Boland ◽  
Kevin Dhuyvetter ◽  
David Barton
Keyword(s):  
The United States ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Return On Equity ◽  
Financial Variables ◽  
Time Period ◽  
Grain Marketing ◽  
Local Farm ◽  
Asset Size ◽  
Marketing Cooperatives

Farm supply cooperatives are an important component of the retail agribusiness industry in the United States. The objective of this research is to identify financial variables that are determinants of return on equity in these cooperatives. Firm effects are important and their effect is the result of managerial decision making and director policy. The estimated coefficient on asset size was not statistically significant, suggesting that return on equity is invariant to size over this time period.

Factors affecting the financial performance of Saudi insurance companies – An Empirical Study on the three largest insurance companies in Saudi Arabia –: العوامل المؤثرة على الأداء المالي في شركات التأمين المساهمة السعودية – دراسة تطبيقية على أكبر ثلاث شركات تأمين في المملكة العربية السعودية –

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Najla Ibrahim Abdulrahman, Alaa Nasser Al-Shuraimi
Keyword(s):  
Saudi Arabia ◽  
Financial Performance ◽  
Regression Coefficient ◽  
Insurance Companies ◽  
Financial Leverage ◽  
Return On Assets ◽  
Statistical Tool ◽  
Return On Equity ◽  
Factors Affecting ◽  
The Impact

This study aimed to identify the impact of independent factors on the financial performance of Saudi insurance companies for the period (2009-2019), and the data was analyzed through the adoption of the statistical tool SPSS, the regression coefficient, and the study concluded the following results: There is an effect of financial raising on the financial performance of measured companies The return on assets, while there is no effect of the financial increase of the financial performance measured by the return on equity. The researchers believe that the reason for this result is that most corporate departments go to invest in the acquisition of new assets, and also there is no relationship between the size of the company and its financial performance, whether it is measured by the return on assets or return on equity. The study recommends that the company’s management, when determining financial leverage, find a degree of balance between the returns that are to be achieved for shareholders with the returns that are to be achieved for the assets, increase the degree of financial leverage for companies to improve financial performance to achieve the returns of shareholders, the need for companies to try to reduce the assumption cost so that it is less than the return on assets to create returns that can be added to equity.

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