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.

ANALISIS KINERJA KEUANGAN PERUSAHAAN PROPERTI YANG TERDAFTAR DI BEI SEBELUM DAN SESUDAH KEBIJAKAN LOAN TO VALUE

2019 ◽  
Vol 4 (1) ◽  
pp. 79-90
Author(s):  
Ghaniy Ridha Prima ◽  
Hermanto Siregar ◽  
Ferry Syarifuddin
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sample Selection ◽  
Test Analysis ◽  
Asset Return ◽  
Return On Equity ◽  
Analysis Technique ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to provide empirical evidence of the effects of the Loan to Value (LTV) policy on the financial performance of property and real estate companies listed on the Indonesia Stock Exchange (IDX). The sample selection uses a purposive sampling method of 42 property and real estate companies that meet the criteria. The research period is divided into 2 namely before the Loan to Value policy (2013-2014) and after the Loan to Value policy (2016-2017) with the Paired Sample t Test analysis technique. The test results show if the current ratio, Return on Asset, Return on Equity and Debt to Asset have significant differences between before and after the LTV policy is applied. While the fast ratio, cash ratio, net profit margin and Debt to Equity did not show a significant difference. Keywords: Financial Performance, Loan to Value, Property and Real Estate, Profitability Ratio, Liquidity Ratio, Solvability Ratio.

scholarly journals Impact of Non-Interest Income on Financial Performance of Joint Venture Banks in Nepal

2018 ◽  
Vol 3 (2) ◽  
pp. 107-124
Author(s):  
Ajay Kumar Shah ◽  
Niraj Agarwal ◽  
Ram Kumar Phuyal
Keyword(s):  
Financial Performance ◽  
Joint Venture ◽  
Return On Assets ◽  
Return On Equity ◽  
Letter Of Credit ◽  
Service Charge ◽  
Interest Income ◽  
Guarantee Income ◽  
Result Analysis ◽  
The Relationship

 The research was conducted to identify the non-interest income variables that will likely affect the financial performance of the joint venture banks of Nepal. The main objective of the study is to analyze the prominence of non-interest income and its effect on financial performance of joint venture banks in Nepal. This study will help the banks to identify other sources of income of the bank and try to look at its impact on the overall profitability and risk intention. To measure the financial performance, the indicator of profitability i.e. returns on assets and return on equity are taken into consideration for the study as a dependent variable and assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee as an independent variable. Both descriptive and inferential analyses were performed to capture the relationship. From the result analysis, it is observed that the non-interest income variables that would affect the financial performance of the joint venture banks. It is observed that not all variables have equal effect on the profitability as measure of financial performance, for joint ventures the factors like assets size, letter of credit fee, guarantee income, remittance fee, dividend income, exchange income, service charge, and renewal fee have a significant relationship with the measure of financial performance that is return on assets and return on equity. Apart from the interest income, there are lot of non-interest variables which leads to profitability so the banks looking to increase its profitability with lesser risk need to take these variables into consideration. Results indicate that banks need to keep the non-interest income variables into consideration at times for improving the financial performance of the joint venture banks.

scholarly journals The Relationship Between Intellectual Capital and Financial Performance of Banks in Tanzania

2016 ◽  
Vol 7 (1) ◽  
pp. 28
Author(s):  
Janeth N. Isanzu
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Performance Indicators ◽  
Data Set ◽  
Capital Efficiency ◽  
Period Data ◽  
Relationship Of ◽  
The Relationship ◽  
Efficiency Indicators

This study examines intellectual capital (IC) performance of banks operating in Tanzania,and investigates the relationship of IC on financial performance. It identifies the IC componentsthat may be the drivers of the traditional indicators of bank success. The study uses the ValueAdded of Intellectual Coefficient VAIC™ methodology, to measure the Intellectual Capitalefficiency of the Banks using a four years period data set from 2010 to 2013. The results of asurvey, show that intellectual capital performance of Tanzania is low and it is positively associatedwith bank financial performance indicators. However, when VAIC is split into its components, therelationships between these components and bank financial performance indicators vary. Threevalue efficiency indicators, Human Capital Efficiency (HCE), Capital Employed Efficiency (CEE) andStructural Capital Efficiency (SCE) which are the components of VAIC™ ratio, were used in theanalysis.

scholarly journals CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)

2021 ◽  
Vol 9 (03) ◽  
pp. 216-231
Author(s):  
Taddesse Shiferaw Deneke ◽  
◽  
Tripti Gujral ◽  
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Relationship ◽  
Asset Return ◽  
Return On Equity ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact ◽  
The Capital Structure

A lot of studies have actually been done by numerous researchers both in developed and developing countries such as Ethiopia to ascertain the empirical relationship existing between capital structure and firm performance with varying samples and period as well as application of several and divergent statistical estimation. This study is based on the identification of the impact that capital structure have on the financial performance of commercial banks in Ethiopia. In this regard, secondary data is collected from varied sources especially annual reports of the private commercial banks in Ethiopia. The literature review is done in the report, and it is identified operating, and the capital structure heavily affects net profit. Apart from this, return on equity, asset and capitals employed also affected by the capital structure of the banks. Regression analysis and descriptive analysis tools are used to analyse the data that is related to the sixteenprivate commercial banks in Ethiopia. On analysis of data, it is identified that operating and net profit is heavily affected by the capital structure. However, in the case of return on asset, return on equity, and return on capital employed, such kind of relationship is not observed. Thus, it is concluded on the basis of entire work that capital structure have the huge impact on the operating and net profit, but it does not put any large impact on the return on asset, return on equity and return on capital employed. The study recommended that banks follow a specific policy, in order to maintain a balance in the capital structure. It is also recommended that managers must keep a keen eye on the changes that are taking place in the capital structure.

scholarly journals Financial Performance of Cement Industry in India Using Extended Dupont Approach

2018 ◽  
Vol 7 (2) ◽  
pp. 16-20
Author(s):  
K. T. Gopi
Keyword(s):  
Financial Performance ◽  
Cement Industry ◽  
Return On Equity ◽  
Coefficient Of Correlation ◽  
Economic Decisions ◽  
Five Factors ◽  
Asset Turnover ◽  
Tax Efficiency ◽  
The Relationship

The present study attempts to evaluate the financial performance of cement industry in India by choosing three leading cement companies like ACC, Gujarat Ambuja and UltraTech cement for the period 2006-2015 by using the extended DuPont approach. The extended DuPont approach has emphasized on analysis of Return on Equity (ROE) which disaggregates performance into five components: pre-interest/pretax margin, asset turnover, interest burden, tax efficiency and the equity multiplier. In the present study, we employed a two-step methodology: first, used extended DuPont approach to calculate return on equity of three companies and coefficient of correlation has been used to determine the relationship between the five components and return on equity. The results shows that return on equity of all three leading cement companies have declined drastically during 2006-2015. In the tough phase of cement industry all three leading companies have exhibited more or less similar financial performance during the study period. The contribution of five factors towards ROE is more or less similar among companies. The extended DuPont approach that we made for three leading cement companies in India emphasized on calculation of ROE is not relevant at all situations for taking rational economic decisions. In order to increase the rate of taking better economic decisions the results of extended DuPont approach can be compared across companies within an industry, between industries, or within a firm itself.

scholarly journals Human Capital Efficiency and Financial Performance: Empirical Evidence of Malaysian Public Companies.

2018 ◽  
pp. 878-884
Author(s):  
Azlina Rahim ◽  
Amrizah Kamaluddin ◽  
Ruhaya Atan
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Value Added ◽  
Annual Reports ◽  
Public Companies ◽  
Accounting Data ◽  
Return On Equity ◽  
Capital Efficiency ◽  
Financial Performance Measures ◽  
The Relationship

The purpose of this study is to investigate empirically the relationship between human capital efficiency and financial performance of Malaysian public companies. Using accounting data, this study reviewed the annual reports of Malaysian companies for a period of thirteen years from 2000 to 2012. The study applied Value Added Intellectual Coefficient (VAICTM) methodology developed by Ante Pulic to determine the human capital efficiency of a company. The regression models was construct to examine the relationship between human capital efficiency and financial performance measures including return on assets (ROA) and return on equity (ROE).The results revealed that human capital efficiency has significant and positive relationships with financial performance. The human capital efficiency is seen as a value driver for a company’s competitiveness. Hence, the findings of this study should help companies’ managers to make better decision pertaining to investment of their strategic asset that is human capital.

scholarly journals INNOVATION, PROCESS CAPITAL AND FINANCIAL PERFORMANCE: MEDIATING ROLE OF MARKETING PERFORMANCE (EVIDENCE FROM MANUFACTURING INDUSTRY IN INDONESIA)

2019 ◽  
Vol 7 (1) ◽  
pp. 278-290 ◽  
Author(s):  
Bambang Tjahjadi ◽  
Hanna Miriam Shanty ◽  
Noorlailie Soewarno
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Data Set ◽  
Mediating Role ◽  
Marketing Performance ◽  
The Relationship

Purpose of the Study: This paper aims to investigate the mediating role of marketing performance on innovation-financial performance relationship as well as on process capital-financial performance relationship using the publicly listed manufacturing firms on the Indonesia Stock Exchange (IDX). Methodology: This is a quantitative research employing marketing performance as the mediation variable. A mediation research model is constructed to test the hypotheses of this research using the Partial Least Squares Structural Equation Modeling. A new data set is prepared which involves the publicly listed manufacturing companies on the IDX covering a period of thirteen years from 2005 to 2017. Main Findings: The results of this research provide the following empirical evidence. Firstly, marketing performance partially mediates the relationship between innovation and financial performance. Secondly, marketing performance fully mediates the relationship between process capital and financial performance. Conclusion: This study provides a better understanding of managers regarding the mechanism of how innovation affects financial performance via marketing performance as well as on the mechanism of how to process capital affects financial performance via marketing performance. Application/Implication: This study implies that managers need to continuously innovate, improve manufacturing processes, and enhance marketing management to achieve better financial performance.

scholarly journals MISSION STATEMENTS AND FINANCIAL PERFORMANCE IN LATIN-AMERICAN FIRMS

2019 ◽  
Vol 20 (0) ◽  
pp. 270-283 ◽  
Author(s):  
Julián David Cortés-Sánchez ◽  
Liliana Rivera
Keyword(s):  
Content Analysis ◽  
Quantitative Analysis ◽  
Financial Performance ◽  
Latin American ◽  
Mission Statements ◽  
Return On Equity ◽  
Managerial Practices ◽  
International Convergence ◽  
Key Terms ◽  
The Relationship

Mission statements (MSs) are one of the most widespread managerial practices. However, a deeper understanding of the relationship between MS’s characteristics and firms’ financial performance is still necessary. The vast majority of the research on this topic has been performed on companies of the global north, rather than global south. The present study addresses this literature gap through a qualitative and quantitative analysis of MS characteristics (i.e., keywords and readability) for Latin-American firms and their relationship to financial performance. The content analysis of the MS was conducted using Voyant Tools, the MS readability was measured through six readability indices (i.e., FI, FKRE, FKGL, SMOG, CL and ARI) and the relationship between MS readability and financial performance was determined using regression analysis (i.e., OLS). The results of the content analysis suggest differences among industries and an international convergence toward isomorphism regarding key terms. The results of the quantitative analysis revealed a positive relationship between MS readability and return on assets (ROA) and return on equity (ROE). These results suggest a positive relation of the MS on a company’s long-term financial performance, highlighting the importance of having a readable MS.

scholarly journals Link between Corporate Philanthropy and Corporate Financial Performance: Evidence from Pakistani Textile Sector

2016 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Sehar Zulfiquar
Keyword(s):  
Financial Performance ◽  
Corporate Philanthropy ◽  
Economic Benefits ◽  
Corporate Financial Performance ◽  
Bottom Line ◽  
Return On Assets ◽  
Return On Equity ◽  
Immense Potential ◽  
The Relationship ◽  
Textile Sector

Literature highlights the immense potential of Corporate Philanthropy (CP) for generating social and economic benefits. The debate on economic benefits align corporate philanthropy with the business bottom line arguing that it can be a significant determinant of corporate financial performance. This research is intended to extent this debate by providing sector specific perspective through analyzing the sample of Pakistani public listed textile companies. Results of the study show that corporate philanthropy has a significantly positive relationship with Return on Assets (ROA) but with Return on Equity (ROE) the relationship is found to be insignificant. The previous year’s financial performance moderates the relationship between CP and ROA but the interaction effect for ROE is insignificant.

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.

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