scholarly journals Impact of Acquisitions on Financial Performance of Selected Software Companies in India

2019 ◽  
Vol 8 (9) ◽  
pp. 2415-2419
Keyword(s):  
Null Hypothesis ◽  
Statistical Significance ◽  
Critical Value ◽  
Strategic Partnership ◽  
Return On Assets ◽  
Financial Status ◽  
Financial Position ◽  
Software Companies ◽  
Net Profit ◽  
The Impact

The objective of the study is to examine the impact of Acquisitions on financial status of selected software companies in India. This study is based on Infosys, Panaya, CMC and TCS companies. It also estimates the pre and post-acquisition financial position of companies using financial parameters like Earning per share, Dividend per share, Return on Assets and Net Profit Margin. The period of study is for 6 years which is divided into 3 years for pre-acquisition and 3 years for post-acquisition performance. The data of Acquisitions has collected based on the financial parameters, Paired T-test has used for finding the statistical significance effect and to estimate their performance on merged companies. As the critical value is greater than the calculated value i.e. -2.919>-6.679, Rejected the Null hypothesis, i.e. there is a major difference between performance of pre and post merger as per earning per share. As the calculated value is greater than critical value i.e. 3.64 >2.919, accepted the Null hypothesis, i.e. there is no major difference in the Earning per Share. The terminal goal behind acquisition is to achieve growth in business. A well-analysed and the authentic plan will dramatically improve the chances of getting new implements to be in a competitive world. The strategic partnership of TCS-CMC and INFOSYS- PANAYA will provide few guidance for traditional players.

scholarly journals The Impact of Working Capital Management on Profitability of Croatian Software Companies

2018 ◽  
Vol 21 (1) ◽  
pp. 47-66 ◽  
Author(s):  
Dina Korent ◽  
Silvije Orsag
Keyword(s):  
Optimal Level ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Macroeconomic Conditions ◽  
Software Companies ◽  
Software Firms ◽  
The Impact ◽  
A Company

Abstract The idea that working capital management impacts profitability and risk of a company is generally accepted and in last 10-15 years has acquired a substantial interest. Accordingly, from the aspect of the measure of efficiency of working capital management, the objective of this paper is to evaluate working capital management impact on profitability of Croatian software companies. This impact was examined using descriptive and correlation as well as panel regression analysis for six-year period (2008-2013). The results show that after controlling for characteristics of the company and macroeconomic conditions working capital management significantly affects the profitability of Croatian software firms. Moreover, the results imply the existence of a nonlinear, concave quadratic relationship between the net working capital and return on assets. This suggest the existence of an optimal level of net working capital that balances costs and benefits and maximizes profitability of analysed companies.

scholarly journals KONTRIBUSI PROFITABILITAS TERHADAP PERTUMBUHAN LABA PT. BANK RAKYAT INDONESIA (PERSERO), TBK

2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Wulan Purnama Rais ◽  
Nur Fiskayani Yustika ◽  
Adhe Alda Rezky Darmawan ◽  
Muhammad Irfai Sohilauw
Keyword(s):  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Profit Margin ◽  
Return On Assets ◽  
Microsoft Excel ◽  
Return On Equity ◽  
Net Profit ◽  
The Impact ◽  
Profit Growth

The purpose of this study is to examine and evaluate the impact of return on assets (ROA), return on equity (ROE), and net profit margin (NPM) on PT. Bank Rakyat Indonesia (Persero), Tbk's profit growth. The method of explanatory analysis with a quantitative approach is used in this study. From 2010 to 2019, secondary data were analyzed quarterly, yielding 40 observations. The data was analyzed with Microsoft Excel 2013 and SPSS Version 21. Using multiple linear regression analysis, Return On Assets (ROA) / X1 had a negative and insignificant effect on Profit Growth (Y) of PT. Bank Rakyat Indonesia (Persero), Tbk from 2010 to 2019. However, Return On Assets (ROE) / X2 and Net Profit Margin (NPM) / X3 have a positive and significant impact on Changes in Profit (Y) PT. Bank Rakyat Indonesia (Persero), Tbk from 2010 to 2019.

scholarly journals Impact of applying the idea of social responsibility on financial results – assessment of statistical significance on the example of enterprises operating in Poland

2021 ◽  
pp. 61-74
Author(s):  
Beata Mirowska ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Statistical Significance ◽  
Business Management ◽  
Return On Assets ◽  
Financial Condition ◽  
Return On Sales ◽  
Corporate Social ◽  
The Impact ◽  
Financial Result

Currently, the ideas of social responsibility are widely used in business management, and became important criteria of their assessment, at the same time there is a cognitive gap in area of the impact of CSR on the financial results of companies. The purpose of this article is to try to answer the following questions: is the pursuit of companies’ policies focused on corporate social responsibility CSR (Corporate Social Responsibility) influences the financial results CFP (Corporate Financial Performance)? Attempting realization of taken assumption, the following hypothesis is taken, there is a statistically significant relationship between the use of CSR and financial results of enterprises. In the article special attention is given to the impact of CSR on the net result, return on assets and return on sales, because those are the basic indicators identifying the company’s financial condition. The results of the study indicate opublikowathat statistically CSR does not have a significant impact on the value of the financial result, as well as on return on assets and return on sales.

Econometric Assessment of the Impact of the Buyer Company’s Financial Position on the M&A Effectiveness (in the Pharmaceutical Industry)

2020 ◽  
Vol 2020 (1) ◽  
pp. 62-80
Author(s):  
Mariya Shtefan ◽  
Viktoriya Shubina
Keyword(s):  
Pharmaceutical Industry ◽  
Growth Rates ◽  
Abnormal Return ◽  
Econometric Model ◽  
Cumulative Abnormal Return ◽  
Financial Leverage ◽  
Financial Position ◽  
Net Profit ◽  
The Impact ◽  
Econometric Assessment

This article provides the assessment of the impact of the buyer company’s financial position on the M&A effectiveness on the base of the pharmaceutical industry. We have estimated this correlation using OLS method and data for the period from 2005 to 2017. As a result, the hypothesis about the dependence of the M&A efficiency from the buyer company’s financial state has been confirmed. The developed econometric model have showed that more than 80% of variation of the cumulative abnormal return, received as a result of the transaction, is explained by growth rates of revenues and net profit, assets, current liquidity, autonomy and financial leverage, return of sales and assets at the transaction time.

scholarly journals The Impact of Companies' Internal Factors On The Performance of Their Stock Returns

2019 ◽  
Vol 2 (1) ◽  
pp. 120-149
Author(s):  
Erifa Aldiena ◽  
Muhammad Hanif al Hakim
Keyword(s):  
Stock Returns ◽  
Time Series Data ◽  
Series Data ◽  
Return On Assets ◽  
Internal Factors ◽  
Book Value ◽  
Depth Analysis ◽  
Net Profit ◽  
Equity Ratio ◽  
The Impact

It is commonly known that in the capital market, not all stocks of companies that have a good profile will provide good returns to investors. Therefore, an in-depth analysis of the companies’ overall health is needed. This study aims to discuss the impact of companies’ internal factors on the performance of their stock returns. The companies meant here are those listed in the Jakarta Islamic Index (JII). The tool by which the data is analysed is panel data which is a combination of time series data and cross section. By employing companies’data of year 2014-2016, the study shows that Return On Assets (ROA), Net Profit Margin (NPM), Debt to Equity Ratio (DER) and Price to Book Value (PBV) simultaneously had a significant effect on the formation of stock returns of companies listed in the JII. Likewise, those four variables namely; ROA, NPM, DER and PBV partially have a significant effect on the formation of stock returns of companies listed in the JII.

scholarly journals Empirical Evaluation of Current Assets Investment and Corporate Financial Returns in Nigeria

2019 ◽  
pp. 1-11
Author(s):  
Osirim, Monday ◽  
Moses, Temple
Keyword(s):  
Commercial Banks ◽  
Null Hypothesis ◽  
Longitudinal Research ◽  
Positive Impact ◽  
Empirical Evaluation ◽  
Least Square ◽  
P Value ◽  
Financial Returns ◽  
Return On Assets ◽  
The Impact

The unceasing apprehension of probable distress of commercial banks in Nigeria has raised concerns on the quality of current assets investment and management in the Nigerian banking industry. Hence, the study analyzed the impact of current assets investment & management on corporate financial returns of listed commercial banks in Nigeria. The longitudinal research design was adopted and secondary data of eight (8) banks whose annual reports were available as at the end of 2016 was randomly selected from the population of fifteen (15) listed deposit money banks in the Nigerian Stock Exchange. Ordinary least square (OLS) regression analysis was employed to determine the association between current assets investment and corporate financial returns. The results of the study indicate that there exist a significant positive relationship between loans and advances granted to customers and return on assets (r =.443, p-value =.004). This leads to the rejection of the null hypothesis, which states that loans and advances granted to customers have no positive influence on return on assets. The relationship between loans and advances granted to other banks and return on assets is negative and significant at 5% confidence level (r = .369, p-value =.019).This leads to the non-rejection of the null hypothesis, which states that loans and advances granted to other banks have no positive impact on returns on assets. The other predictor variables (financial assets held for trading & cash, and cash balances) have an insignificant positive relationships with return on assets. It was therefore recommended that bank managers should not only increase their investment in current assets but they should also consider the most effective and efficient way of managing these assets in order to improve their financial efficiency and corporate value. To this end, the conservative or aggressive current assets investments policy might be pursued depending on the strategic focus of the firm.

scholarly journals Does Liquidity Influence Profitability in Islamic Banks of Bahrain: An Empirical Study?

2018 ◽  
Vol 9 (2) ◽  
pp. 236 ◽  
Author(s):  
Hussein Khasharmeh
Keyword(s):  
Empirical Study ◽  
Null Hypothesis ◽  
Alternative Hypothesis ◽  
Annual Reports ◽  
P Value ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Watson Test ◽  
The Impact

This study examines the impact of liquidity on Islamic banks’ profitability during the years from 2010 to 2015. The study extracted its data from the annual reports of six Islamic banks in Bahrain that have been in operations on or before 2010 to 2015. The liquidity model is built from four liquidity variables namely cash & due from banks to total assets (CDTA), cash & due from banks to total deposits (CDTD), investment to total assets (INVSTA) and investment to total deposits (INVSTD). According to adjusted R squares profitability variables return on assets (ROA), return on equity (ROE) and return on deposits (ROD) are respectively 16.2%, 3.1% and 21.3% dependent on liquidity variables.The results of the study show that CDTD and INVESTD are correlated positively with ROE. In addition, CDTD, INVSTA indicate a negative correlation with ROE. Thus, only INVSTA and INVSTD found to be significant with ROE at 0.05 significant level. Durbin-Watson test shows that the residuals are uncorrelated since its value is approximately very close to 2. However, according to the P-value, the overall liquidity model (Model 2) is not significantly related with ROE. Thus, the null hypothesis (H0) is accepted and the alternative hypothesis is rejected for the ROE. Furthermore, the results in the table show that CDTA and INVESTD are positively correlated with ROD, and negatively with CDTA and INVSTA, and CDTA is the only insignificant variable. CDTD is significantly related with ROD at 10%. Durbin-Watson test shows that the residuals are positive auto - correlated since its value is approximately very close to 1. However, according to the P-value, the overall liquidity model (Model 3), is significantly related with ROD at 1% level.The researcher recommended for further studies to add more liquidity variables to the model so as to enhance and enrich Islamic banks outlook.

scholarly journals Dampak Covid-19 Terhadap Harga Saham dan Kinerja Keuangan Perusahaan

2020 ◽  
Vol 21 (2) ◽  
pp. 252-269
Author(s):  
Annisa Nadiyah Rahmani
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Stock Exchange ◽  
Financial Statements ◽  
Profit Margin ◽  
Return On Assets ◽  
Regression Methods ◽  
Operating Profit ◽  
Net Profit ◽  
The Impact

The purpose of this study to determine the impact of Covid-19 on stock prices and financial performance of companies on LQ-45 issuers listed on the IDX. This study examines the impact of Covid-19 on stock prices and financial performance before being exposed to Covid-19 for Q3 2019 and after being exposed to Covid-19 for Q1 2020. Stock prices are measured using closing stock prices and financial performance is measured using a ratio formula that is Return on Assets (ROA), Operating Profit Margin (OPM), and Net Profit Margin (NPM). This study uses a sample of LQ-45 companies that have published their financial statements on the Indonesia Stock Exchange (IDX).  This research uses multiple linear regression methods using SPSS 25. The results of this study indicate that (a) Pandemic Covid-19 has an impact on stock prices and (b) Pandemic Covid-19 has an impact on financial performance.

scholarly journals The Impact of Share Pricing on Firm Performance: Empirical Evidence from Pakistan

2021 ◽  
Vol 2 (2) ◽  
pp. 133-137
Author(s):  
MUHAMMAD ILYAS ◽  
DR.SHAHID JAN ◽  
MUHMMAD NISAR KHAN
Keyword(s):  
Random Effect ◽  
Balance Sheet ◽  
Fixed Effect Model ◽  
Profit Margin ◽  
Return On Assets ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Effect Model ◽  
Net Profit ◽  
The Impact

Researchers examined the impact of share pricing on firms performance in Pakistan. Selected 98 firms from five different sectors listed on Karachi Stock exchange1 . Selected sample on the bases of availability of complete data of sample firms during period of this study (2006-2011). Data used are secondary in nature and source of data is balance sheet analysis of listed firms. Used Net profit margin as depended variable while earnings per share used as independent variable and return on assets overhe1 ads and earnings before interest and tax used as control variables. For analysis used Panel data techniques as fixed and random effect models. On the basis of Hauseman effect test select fixed effect model for analysis and concluded that the impact of earnings per share, earnings before interest tax and overheads are significant on net profit margin. However, impact of return on assets on net profit margin is insignificant.

scholarly journals NEXUS BETWEEN INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE: AN INVESTIGATION OF CHINESE MANUFACTURING INDUSTRY

2020 ◽  
Vol 0 (0) ◽  
pp. 1-19
Author(s):  
Jian Xu ◽  
Feng Liu
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Manufacturing Industry ◽  
Listed Companies ◽  
Profit Margin ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit ◽  
Chinese Manufacturing Industry ◽  
The Impact

How to manage financial performance through the utilization of intellectual capital (IC) is an important issue in the knowledge economy. The objective of this study is to investigate the impact of IC on financial performance for manufacturing listed companies in the Chinese context. Financial performance is measured from two distinct aspects: (1) firm profitability, measured through earnings before interest, taxes, depreciation and amortization (EBITDA), net profit margin (NPM), and gross profit margin (GPM), and (2) corporate return, measured through return on investment (ROI), return on assets (ROA), and return on equity (ROE). The results show a positive relationship between NPM, GPM, ROI, ROA, ROE, and IC (measured through the market-to-book ratio). In addition, the more intangible-intensive manufacturing listed companies exhibit better financial performance. The study provides evidence that higher investment in IC can improve value creation in the emerging economies.

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