Determinants of financial performance in Albanian economic entities, case of construction industry in Albania

2022 ◽  
Vol 19 ◽  
pp. 453-461
Author(s):  
Albana Gjoni (Karameta) ◽  
Shpresa Çela ◽  
Ahmad Mlouk ◽  
Griselda Marku
Keyword(s):  
Performance Measurement ◽  
Financial Performance ◽  
Economic Value ◽  
Predictor Variable ◽  
Value Added ◽  
Financial Ratios ◽  
Construction Sector ◽  
Leverage Ratio ◽  
Construction Companies ◽  
Predictive Variables

Financial performance mainly reflects the overall financial health of the business sector over a period of time. It shows how well an entity is using its resources to maximize shareholder’s wealth. Although a thorough assessment of a firm's financial performance takes into account many other measures, the most common performance measurement used in the area of finance are financial ratios. This paper provides a comprehensive study of the financial performance measurement literature related to the construction sector in Albania. The literature covers studies from Albania, Iran, India and Pakistan, but some international evidence has also been presented. The construction sector is chosen because of its impact on economic growth in Albania, it represents the second main sector according to its share effect on Albanian GDP. The financial ratios used to measure the financial performance of the construction sector are the debt ratio, the liquidity ratio and the profitability ratio from the period 2018-2020 for 100 construction companies in Albania. Return on Assets (ROA) is taken as the predictor variable and three financial ratios are taken as the predictive variables. This research reveals that the financial ratios have positive correlation with the dependent variable whereas the leverage ratio has negative correlation. To overcome the limitations of the forthcoming studies, the considered number of years need to be increased and other models such as Market Value Added, Capital Asset Pricing Model and Economic Value Added can be used to be tested for research to analyze other factors that may affect financial performance.

scholarly journals ANALISIS PERBANDINGAN ANTARA RASIO KEUANGAN DAN METODE ECONOMIC VALUE ADDED SEBAGAI PENGUKUR KINERJA KEUANGAN PERUSAHAAN (STUDI KASUS PADA PERUSAHAAN ROKOK YANG TERDAFTAR DI BEI PERIODE TAHUN 2012 -2014

2016 ◽  
Vol 1 (01) ◽  
Author(s):  
Any Arisanti ◽  
IBK Bayangkara
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Secondary Data ◽  
Financial Ratios ◽  
Economic Value Added ◽  
New Approach ◽  
Financial Situation ◽  
The Past

This study aimed to describe and compare the company's financial performance as measured by the method of Economic Value Added (EVA) is a new approach which assesses the company's financial performance by taking into account the expectations of donors, particularly shareholders and creditors. Financial Ratios and analysis to assess the company's financial situation in the past, present and future. The research object is a cigarette company listed on the Stock Exchange in the period 2012 - 2014, that are PT. Gudang Garam Tbk, PT. HM Sampoerna Tbk, PT. Bentoel Internasional Investama Tbk, and PT. Wismilak Inti Makmur, Tbk. This type of research is comparative descriptive, while the data used is secondary data obtained from the Indonesia Stock Exchange. The Results of financial ratios calculation fluctuated every company each year. In the EVA calculation are the average of 2012 - 2014, PT. HM Sampoerna Tbk has the highest EVA value, then PT. Gudang Garam Tbk, hereinafter PT. Bentoel Internasional Investama Tbk and last PT. Wismilak Inti Makmur, Tbk. EVA is always positive (EVA> 0) in 2012-2014 means that the management company is able to create economic value for shareholders, and of course the company's financial performance is also good.Keywords: financial performance, financial ratios, EVA

scholarly journals Financial Performance, Capital Structure and Share Ownership Structure, Companies Registered on the Indonesia Stock Exchange (Empirical Study on Manufacturing Companies Listed on the Stock Exchange Indonesia Period 2012-2016)

2019 ◽  
Author(s):  
Purwanti . ◽  
Eddy Irsan Siregar
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Returns ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Manufacturing Companies ◽  
Leverage Ratio ◽  
Share Ownership ◽  
The Capital Structure

This study will examine Financial Performance, Capital Structure and Structure Share Ownership, Companies that are measured using Economic Value Added (EVA). The sample used in this study uses a method purposive sampling with several predetermined criteria. With using the pooled data method, the study sample consisted of 117 observations data listed on the Indonesia Stock Exchange for the period 2012-2016 obtained from Indonesian Capital Market Directory (ICMD) and also from financial statements annual manufacturing company. The data analysis technique used is regression multiple linear and hypothesis testing using t test and F test with level 5% significance. The results of the study indicate that institutional ownership has greater value than managerial share ownership, so that monitoring functions by institutional shareholders are more effective in monitoring. Leverage ratio on manufacturing companies listed at The Indonesia Stock Exchange during the 2012-2016 research period, is still deep the normal range at the lower level is around 30% - 36%. Asset structure on manufacturing companies listed on the Indonesia Stock Exchange during the period the 2012-2016 research is still quite low, meaning the company asset structure doesnot affect the capital structure. The growth of company assets is not affect the capital structure of registered manufacturing companies on the IndonesiaStockExchangefortheperiod2012-2016.Capital structure,size the company and the risk of stock returns simultaneously influence on financial performance of manufacturing companies listed on the Stock Exchange Indonesia for the period 2012-2016. Institutional share ownership, ownership managerial shares, company size, riskofstockreturnsandcapitalstructurethecompanyhasaninfluenceonthefinancial performance of manufacturing companies listed on the Indonesia Stock Exchange during the 2012 study period - 2016

scholarly journals An Analysis of Financial Performance of the Coal Mining Industries: A Case Study of Raniganj Coalfield of Eastern Coalfield Limited

2021 ◽  
pp. 1-16
Author(s):  
Gosai Maji ◽  
Uma Sankar Malik
Keyword(s):  
Financial Performance ◽  
Coal Mining ◽  
Economic Value ◽  
Mining Industry ◽  
Value Added ◽  
Secondary Data ◽  
Mirror Image ◽  
Financial Ratios ◽  
Entire Study ◽  
Raniganj Coalfield

The leading coalfield of India, the Raniganj coalfield under Eastern Coalfield Limited is recognised as the birth place of the Indian coal mining industry and one of the most prominent coalfields not only in India but also in the world. It is also the second largest supplier of superior quality of coal in the nation at present subsequent to Jharia coalfield. Raniganj and Jharia Coalfields (RCF & JCF) can be recognised as mirror image in the history of coal mining in India.  Both the coal mining areas are witnessing mining of coal for more than 230 years. With the shifting of economic structure of the country, the cold filed region has registered quite a lot of ups and down in its financial performance. From this point of view the current paper is an attempt to assess the financial performance in the field of mining segment of Raniganj Coal Field, the most important coal producer in West Bengal. The whole study is entirely based on secondary data. A period of five year from 2014-15 to 2019-20 has been determined for the study. The data have been tabulated, analysed and interpreted with the help of Z Score Model and Economic Value Added (EVA) based on financial ratios. It is observed from the analysis of various financial ratios that the revenue earning capability, liquidity condition and long-standing solvency situation of RCF, is to a certain extent good during the entire study period and the level of bankruptcy situation is also very low.

Financial performance measurement of supply chains: a review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masoud Rahiminezhad Galankashi ◽  
Farimah Mokhatab Rafiei
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Financial Performance ◽  
Supply Chains ◽  
Economic Value ◽  
Value Added ◽  
Assessment Process ◽  
Publication Date ◽  
Content Type ◽  
Financial Performance Measures

PurposeThis study provides a systematic review on performance measurement of supply chains from a financial perspective.Design/methodology/approachThis study systematically reviews the financial performance measures of supply chains. More specifically, this research reviews a total of 100 papers published in more than 50 peer-reviewed journals. The reviewed papers are categorized into three major areas of engineering, business and management. Additionally, the papers are investigated based on country, journal frequency, applied methods, publication date and research type (application or developmental).FindingsAccording to the obtained results, cost, return on assets (ROA), sales, asset turnover, return on investment (ROI), market share, inventory turnover, profit margin, revenue growth, economic value added (EVA) and cash-to-cash cycle are the most common metrics of financial performance measurement. Next, a framework is developed based on different categories of performance measurement and decision levels of the supply chain. Finally, some research directions are suggested to be further investigated by other scholars.Originality/valueAlthough available studies on supply chain performance measurement are very vast and comprehensive, the majority of the studies have neglected to highlight the importance of financial measures. In other words, with the advent of nonfinancial measures, however, the majority of supply chain managers still prefer to consider financial issues in their performance assessment process.

scholarly journals KAJIAN KINERJA KEUANGAN BPR – ETAP DI JAWA BARAT DENGAN PENDEKATAN ECONOMIC VALUE ADDED

2020 ◽  
Vol 13 (1) ◽  
pp. 51-61
Author(s):  
Edy Sukarno
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Economic Value ◽  
Value Added ◽  
Financial Ratios ◽  
Economic Value Added ◽  
Business Size ◽  
Independent Variable

This research aims to try to apply an alternative of EVA (Economic Value Added) method as a measurement of financial performance in the Conventional Rural Banks (BPR) industry. The motive of examining other alternatives because until now BPR financial performance measurement is still using a normative approach - Regulation of the Financial Services Authority (POJK) in the form of financial ratios. However, phenomenal happening reference numerals are not rigid. Some benchmark financial performance ratios such as ROA and Operational Expenses to Revenues (BOPO) applied during this magnitude resembles a commercial bank, whereas both business size is different. BPRs assume this spirit is still rough guide and constantly still in the process of looking for the best practice’s formulation. Empirically, this study calculating Economic Value Added (EVA) and using purposive sampling at 30 BPR in West Java for period 2013-2015 with the following criteria: (1) The total combined assets under $ 10 billion, (2) has information of financial ratios in 2013 -2015, (3) the results of the processing of statistical data meets the assumptions of classical test. In a panel data analysis here used 3 regression model, the model of common effect, fixed effect and random effect. Results of this research by F-test showed that all independent variables partially made a significant influence on the dependent variable EVA and by t-test showed that the independent variable EAT showed positive and significant effect on the variable EVA, but independent variable DER, CAR and DPK showed no significant effect on variable EVA. Prospects for implementing EVA method will lightened administratively in the measurement of BPR’s financial performance and potentially stimulate management tasks to focus on core banking activities.

scholarly journals Analisis Kinerja Keuangan Dengan Menggunakan Rasio-Rasio Keuangan Dan Economic Value Added (EVA) Pada PT. Bank Muamalat Indonesia Tbk.

2019 ◽  
Vol 16 (2) ◽  
pp. 121-130
Author(s):  
Ahmad Mukhlis ◽  
Novanda Puspha Zahra
Keyword(s):  
Qualitative Research ◽  
Financial Performance ◽  
Economic Value ◽  
Value Added ◽  
Financial Ratios ◽  
Economic Value Added ◽  
Year 2013

The purpose of this study is to determine the financial performance of Muamalat Indonesia Tbk. bank by using financial ratios and Economic Value Added (EVA) period 2013-2017. The research is a type of qualitative research with descriptive method.As for the results of the study is the highest ROA value is in the year 2013 because it is above the standard, the value of bank ROE tends to decline from year to year, the value of NPM bank fluctuate every year, the CAR value of the bank can categorized well because it is always above standard, DER and DAR fluctuate every year, while positive EVA values are only in 2015

scholarly journals KINERJA KEUANGAN PERUSAHAAN DENGAN MENGGUNAKAN RASIO KEUANGAN DAN KONSEP ECONOMIC VALUE ADDED (EVA) (Studi Kasus pada PT. Pertamina Periode 2012-2014)

2017 ◽  
Vol 2 (01) ◽  
Author(s):  
Dorotea Noesman Riberu ◽  
Tries Ellia Sandari
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Poor Performance ◽  
Added Value ◽  
Financial Ratios ◽  
Financial Ratio ◽  
Financial Condition ◽  
Exchange Performance

ABSTRACTState-Owned Enterprise is a state-owned company. Weak control and control that causes a decline in the performance of state-owned companies. The purpose of this study is to determine the company's financial performance using financial ratio analysis and EVA concepts. The method used in this research is descriptive quantitative approach, because it only describes the company's financial condition through quantitative calculations of some financial ratios and EVA concepts. The object of this research is PT Pertamina which is listed on the Indonesia Stock Exchange. Performance of PT. Pertamina has a very poor performance, because the liquidity ratio has not reached maximum results. The solvency ratio must improve DTAR derived from loans or debt. Activity ratio is only inventory turnover which shows quite good, profitability ratios increase sales so that the resulting profit increases. The results of the analysis of financial performance using EVA, that the financial performance of PT. Pertamina experienced a decline in 2012 and 2013, then experienced an increase in 2014. It shows that the company's financial performance using EVA is considered not good, because it has not managed to achieve a positive value (EVA> 0) in 2012 and 2013. But in 2014, EVA is considered quite good, because it has managed to achieve a positive value (EVA> 0), so it can be concluded that the company is only able to produce economic added value in 2014. This means that in 2014 the company can meet the level of returns expected by investors, both creditors or shareholders. Keywords: Financial Performance. Financial Ratios, EVA

Analisis Kinerja Keuangan Perusahaan dengan Menggunakan Pendekatan Economic Value Added (EVA) dan Market Value Added (MVA) (Studi Kasus pada PT Astra International, Tbk. Periode Tahun 20082012)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdul Hamid
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Stock Price ◽  
Economic Value ◽  
Composite Index ◽  
Value Added ◽  
Secondary Data ◽  
Study Approach ◽  
Market Value Added ◽  
The Interest Rate

This study is a qualitative study using a case study approach to the PT. Astra International, Tbk. The object of this research is PT. Astra International, Tbk. PT. Astra International, Tbk is a company engaged in six business sectors, namely: automotive,financial services, heavy equipment, mining and energy, agribusiness, information technology, infrastructure and logistics. Researchers chose PT. Astra International, Tbk as research objects due in the year 2012, PT. Astra International, Tbk managed to rank first in the list of 100 Best Companies to Go Public by the 2011 financial performance of Fortune magazines Indonesia. The data used in this research is secondary data, the financial statements. Astra International, Tbk 20082012. Other secondary data used is the interest rate of Bank Indonesia Certificates (SBI), the Jakarta Composite Index (JCI), and thecompanys stock price began the year 20082012. This study aims to determine the companys financial performance by the use of EVA and MVA approach, therefore the data analysis technique used is the EVA and MVA. Based on the value EVA of the year 2008 2012, PT. Astra International, Tbk has good financial performance that managed to meet the expectations of the company and the investors. Based on the value of MVA during the years 20082012, PT. Astra International, Tbk managed to create wealth and prosperity for companies and investors. It concluded that financial performance. AstraInternational, Tbk for five years was satisfactory.

KOMPARASI KINERJA KEUANGAN MELALUI PENDEKATAN ECONOMIC VALUE ADDED (EVA) PADA PERUSAHAAN TRANSPORTASI DI JAKARTA

2018 ◽  
Vol 3 ◽  
pp. 223-232
Author(s):  
Dwi Urip Wardoyo
Keyword(s):  
Financial Performance ◽  
Service Industry ◽  
Economic Value ◽  
Value Added ◽  
Added Value ◽  
Economic Value Added ◽  
Test Analysis ◽  
Transportation Service ◽  
Income Statement

This study aims to compare financial performance through profitability generated by two market participants in the witness transportation service industry in Jakarta, namely PT. BB compared to PT. ETU, this assessment is measured not limited to the profit generated but more than that by measuring financial added value through the concept of Eonomic Value Added produced by the two companies. The population in this study were all taxi transportation service companies in Jakarta. The sampling method selected two taxi companies that have the largest market share in DKI Jakarta, namely BB Taxi and ETU Taxi. The test analysis used in this study is ratio analysis through profit calculation and economic added value from the annual income statement. This study shows that there are (a) determination of the ratio of profit levels, (b) Determination of the comparison of economic value added of the two companies. Keywords :  Financial performance, Economic Value Added (EVA)

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