scholarly journals MARKETING EXPENDITURE IMPACT ON BANK’S FINANCIAL PERFORMANCE: A CASE STUDY ON KUWAITI BANKS

Author(s):  
Musaed S. AlAli ◽  
Hazem A. AlKulaib ◽  
Rawan Abuzarqa ◽  
Abdulaziz S. AlSalem

Marketing personnel are always under pressure to justify their marketing strategies expenses to bank top management and shareholders. This study aims to provide some justification for their expenses by linking it to the financial performance of the firm. Using the data of ten Kuwaiti banks that are listed at Kuwait stock exchange (KSE) over the period spanning from 2008 to 2018, results show that there is a statistically significant direct relation between marketing expenditure and the financial performance of banks in Kuwait. In addition, results show that both bank size and assets per employee also have a direct relation with bank performance. JEL: G21; G24; G10 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0728/a.php" alt="Hit counter" /></p>

2020 ◽  
Vol 9 (3) ◽  
pp. 99-104
Author(s):  
Musaed Sulaiman AlAli ◽  
Tariq Saeed

It has always been believed that government ownership would lead to bad financial performance and overstaffing in any organization. This study aims to examine the effect of government ownership on staffing level and the financial performance of Kuwaiti bank over the period 2010-2018. Using the financial data of ten banks listed at Kuwait stock exchange (KSE), results shows that there was s statistically significant direct relation between government ownership and overstaffing and statistically significant inverse relation between government ownership and the financial performance of banks measured by return on assets (ROA). On the other hand results show that there was no relation between overstaffing and the financial performance of Kuwaiti banks.


Author(s):  
Musaed S. AlAli

An efficient employee is considered as a valuable asset in any organization, but measuring employee efficiency is not an easy task. This study aims to measure and compare staff efficiency in Kuwaiti banks using the financial performance of the bank as an efficiency proxy. Return on assets (ROA) and return on equity (ROE) are set as dependent variables, and total assets per employee, cost per employee, revenue per employee, number of staff per branch, and total employees’ cost to total revenues are set as independent variables. Using panel OLS regression on the data of 10 Kuwaiti banks that are listed at Kuwait stock exchange (KSE) over the period 2010-2018, results showed that total assets per employee, cost per employee, revenue per employee all had a significant direct relationship with both ROA and ROE and only total employees’ cost to total revenues showed a significant inverse relationship with the financial performance of the banks. The number of staff per branch was the only variable that had no relation with both ROA and ROE. The model showed that the National bank of Kuwait had the most efficient employees’ when it comes to ROA, while Ahli United bank had the most efficient employees’ when ROE was used to measure staff efficiency. In both cases, ROA and ROE, Warba bank had the least efficient staff among all banks under study.


Accounting ◽  
2021 ◽  
pp. 95-98
Author(s):  
Yaser A. AlKulaib ◽  
Musaed S. AlAli

This study aims to examine whether or not Kuwaiti banks are overstaffed based on the data of ten Kuwaiti banks listed at Kuwait stock exchange (KSE) over the period 2010-2018. Using panel regression analysis, the results show that six banks were overstaffed while the remaining four banks were understaffed. Kuwait Finance House (KFH) was the most overstaffed bank in Kuwait while Commercial bank was the most understaffed bank. Gulf bank was the closest to the estimated number of staff followed by AlAhli bank. The results also revealed that there was a statistically significant inverse relationship between staffing level and return on assets (ROA) while, on the other hand, there was a statistically significant direct relationship between total assets and the number of branches with staffing level.


2021 ◽  
Vol 1 (1) ◽  
pp. 11-20
Author(s):  
Ibnu Trilaksono ◽  
◽  
Agrianti Komalasari ◽  
Chara Pratami Tidespania Tubarad ◽  
Yuliansyah Yuliansyah ◽  
...  

Abstract Purpose: This study examined the effect of Islamic Corporate Governance and Islamic Social Reporting on the Financial Performance of Islamic Banks in Indonesia at Sharia Commercial Bank Companies Listed on the Indonesia Stock Exchange. Research methodology: This study used multiple regression as the method to analyze the result of the research. By using 14 shariah banking data, this research will analyze the performance of the Indonesian general bank. Result: This study indicates that the variables that affect Islamic bank performance in this research are not implemented effectively. Limitations: The sample of this study was only 14 Islamic commercial banks and only used the Islamic banking sector in Indonesia, which is listed on the Indonesia stock exchange. Contribution: This research is helpful for further research. One of the guidelines in choosing which variabels to use and which one to use in the study should be understood in selecting Islamic financial performance.


Equity ◽  
2019 ◽  
Vol 21 (1) ◽  
pp. 81
Author(s):  
Ajun Daruri Jaya ◽  
Rudi Zulfikar ◽  
Kurniasih Dwi Astuti

This study aimed to analyze the influence of Independent Comission er and manajerial ownership on financial performance with accounting conservatism as an intervening variable. Independent Comissioner is m easured by total Independent Comissioner divided by total Independent Board, manajerial ownership is measured by share owned by mana jemen divided by total outstanding share, financial performance is proxied with Return On Asset and accounting conservatism is proxied by the Book to Market Ratio. The sample in this study are as many as 174 companies, and samples u sed in this study is a manufacturing company listed on the Indonesia Stock exchange during 2012-2016. The statistical method used is regression analysis with path analysis. The results show that better corporate governance, in terms of greater of independence commissioner and manajerial ownership shows to be a direct relation tofinancial performance. On the other hand , manajerial ownership lowered the financial performance via accounting conservatism. Howeever, in terms of greater independent commissioner does not lowered the financial performancce via accounting conservatism.


2018 ◽  
Vol 6 (2) ◽  
pp. 231-239
Author(s):  
Alexander Joseph Ibnu Wibowo

This study aims to analyze trends in financial performance of a food company and test the validity of financial ratio instruments that have been used by financial practitioners and academics. For this reason, we designed an exploratory study through a single case study at a food company listed on the Indonesia Stock Exchange (IDX). We analyze the company's financial data using a variety of ratio analysis commonly used in financial disciplines, such as operational ratios, financial ratios, and stock performance. The analysis was deepened by describing the results of factor analysis to test the validity of financial ratio instruments. We find that the company's financial performance tends to fluctuate over time. When viewed from the sales side, the company's performance showed an increase since 2010. If we observe the profit margin, the company's financial performance tends to decrease. Operational ratio trends also show a decline from 2013 to 2015. Furthermore, the results of factor analysis indicate that the ratio of net income to overall assets is the strongest indicator to measure the company's financial ratios. In contrast to previous studies, this study found that the ratio of operating income to equity was not proven valid as a measure of financial ratios. In summary, this study succeeded in providing significant contributions and novelty for practical and theoretical interests through the validation of financial ratios that are widely used so far.


2019 ◽  
Vol 6 (2) ◽  
pp. 40
Author(s):  
Musaed S. Alali

This study aims to compare the financial performance between Islamic and conventional banks listed at Kuwait stock exchange over the period 2011-2018 using the modified DuPont model of financial analysis which is based on the analysis of return on equity (ROE). Unlike previous studies where researchers compared the performance on a bank-to-bank basis, this study examines the aggregate ratios of Islamic banks and compare it to aggregate ratios of conventional banks. The study also adds volatility into the model since consistency in returns indicated a more stable sector.  Results obtained from this study showed that conventional banks in Kuwait had a better mean performance during the study period in terms of both return on assets (ROA) and return in equity (ROE), Islamic banks also showed a higher deviation in these two ratios resulting in a lower Sharpe ratio. While the results showed no statistically significant mean difference between Islamic and conventional banks in terms of return on assets (ROA), the results also showed a statistically significant difference in mean return on equity (ROE) between the two sub-sectors.  On the other hand, Islamic banks showed an impressive improvement in their ratios during the last three years of the study period which impose a real threat to conventional banks in the future.


2020 ◽  
Vol 21 (01) ◽  
Author(s):  
Darmanto Darmanto ◽  
Kun Ismawati

ABSTRACT: Bussiness competition in the textile and garment industry is now increasingly high, need to be managed properly, especially it’s financial performance. This study aims to determine the effect of capital structure on financial performance on textile and garment companies listed on the Indonesia Stock Exchange in 2016-2018 both partially and simultaneously. Capital structure is measured by Debt to Asset Ratio (DAR) (X1), Debt to Equity Ratio (DER) (X2), and Long term Debt to Equity Ratio (LtDER)(X3). Company performance is measured by Return on Investment (ROI) (Y). This research is a quantitative case study. Secondary data obtained from the annual financial statetments. The population of the research are 21 companies. The number of samples in this study were 8 companies. The analysis technique used is multiple regression to test the effect of independent variables on the dependent variable. The results showed that partially DAR and DER variables significantly influence the ROI, while the LtDER variable has no significant effect on ROI. All three variables have a significant effect on ROI simultaneousl.


Sign in / Sign up

Export Citation Format

Share Document