scholarly journals tradeoff between liquidity and profitability: evidence from Indian manufacturing firms

2021 ◽  
Vol 2 (2) ◽  
pp. 46-58
Author(s):  
AHMED MOHAMMED HASSAN
Keyword(s):  
Secondary Data ◽  
Target Population ◽  
Manufacturing Firms ◽  
Return On Assets ◽  
Financial Return ◽  
Trade Off ◽  
Earnings Per Share ◽  
Return On Capital ◽  
Convenience Sampling ◽  
Spss Software

The main aim of this research paper is to examine the trade-off between liquidity and profitability of Indian firms. The target population of the study is manufacturing firms. The study used convenience sampling for collecting the data. The study is based on secondary data for the period from 2008 to 2017 and 20 Indian manufacturing firms are selected for this purpose. Analysis of the data has been undertaken using SPSS software. Findings revealed that current liabilities ratio have a positive and significant impact on earnings per share and profit after tax. On the contrary, the current ratio and quick ratio have an insignificant impact on earnings per share, return on capital employed, return on assets and profit after tax. This study suggests that managers should incorporate liquidity into their evaluation decisions in order to boost the financial return of their businesses. The current study offers valuable insights into the success of Indian listed companies for administrators, analysts, regulators, investors, and other interested parties. There is insufficient research that has been conducted to examine the trade-off between liquidity and profitability. Furthermore, findings from this literature cannot be relied upon as they are outdated. Therefore, this study is going to provide updated evidence on the trade-off between liquidity and profitability of Indian manufacturing firms, an area that has largely remained unexplored.

scholarly journals Impact of Environmental and Social Costs on Performance of Nigerian Manufacturing Companies

2016 ◽  
Vol 8 (9) ◽  
pp. 173 ◽  
Author(s):  
Agbiogwu A. A. ◽  
Ihendinihu J. U. ◽  
Okafor M. C.
Keyword(s):  
Social Cost ◽  
Annual Report ◽  
Secondary Data ◽  
Social Costs ◽  
Manufacturing Companies ◽  
Environmental Laws ◽  
Earnings Per Share ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact

This study examines the impact of environmental and social costs on performance of Nigerian manufacturing companies. With the use of secondary data, sourced from ten (10) randomly selected firms’ annual report and financial summary 2014. The study makes use of t- test of Spss version 20 for the analysis of collected data. Finding from the analysis shows that the sample companies environmental and social cost significantly affect Net profit margin, Earnings per share and Return on capital employed of manufacturing companies. The researchers recommended that government should ensure complete adherence of environmental laws by manufacturing companies in Nigeria.

scholarly journals Analisis Pengaruh Faktor-Faktor Terhadap Underpricing pada Penawaran Umum Saham Perdana Di Bursa Efek Indonesia

Syntax Idea ◽  
2021 ◽  
Vol 3 (9) ◽  
pp. 2127
Author(s):  
Moch Irfandi ◽  
Sri Muljaningsih ◽  
Kiki Asmara
Keyword(s):  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Test Results ◽  
Firm Age ◽  
Return On Assets ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Equity Ratio

Underpricing is an IPO phenomenon in the capital markets and have been proven by researchers in many countries. This study aims to determine the effect of debt to equity ratio, earnings per share, company age, return on assets on underpricing listed on the Indonesia Stock Exchange in the 2015-2019 period. This study uses multiple linear regression analysis where debt to equity ratio, earnings per share, company age, return on assets as independent variables, and underpricing as dependent variable. This study uses a quantitative approach and the data used in this study are secondary data taken from periodic underpricing data listed on the Indonesia Stock Exchange from 2015 to 2019. The test results show that the variable debt to equity ratio, earnings per share has a positive and significant effect. on underpricing, the firm age variable has no effect on underpricing and the variable return on assets has a negative and significant effect on underpricing.

scholarly journals BOARD OF DIRECTORS QUALIFICATION AND COMPOSITION: STUDY OF ITS IMPACT ON SERVICE SECTOR OF INDIA

2021 ◽  
Vol 9 (1) ◽  
pp. 1213-1219
Author(s):  
Rahul Singhal , Vikhyat Singhal, Ritesh Kumar Singhal, Ajay Singh
Keyword(s):  
Board Of Directors ◽  
Service Sector ◽  
Negative Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Target Population ◽  
Annual Reports ◽  
Return On Equity ◽  
Return On Capital

The purpose of this study was to determine the effects of education and composition of Board of Directors on the performance of firms listed at the Bombay Stock Exchange (BSE). The target population of this explanatory research study comprises of top performers of service sector firms listed at the Bombay Stock Exchange. The secondary data from the financial statements and annual reports of the listed companies covering the year 2015-19 was considered for the study. The correlation matrix and linear regression analysis technique was used to determine the effect of independent variables i.e. size of board, proportion of board with post-graduation qualification and proportion of independent directors in the board on the dependent variable i.e. return on equity and return on capital employed. The study findings indicate size of BODs and independence of BODs has insignificant and negative impact on the firm performance. On the other hand percentage of directors having post-graduation degree has positive and notable impact on the performance of the firm.

scholarly journals FINANCIAL PERFORMANCE ANALYSIS FOR RETURN ON ASSETS WITH A MULTIPLE LINIER REGRESSION APPROACH

2020 ◽  
Vol 8 (2) ◽  
pp. 42-50
Author(s):  
Hendra H Dukalang
Keyword(s):  
Financial Performance ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Operating Income ◽  
Analysis Technique ◽  
Capital Adequacy Ratio ◽  
Spss Software ◽  
Asset Quality ◽  
Microsoft Office

This study aims to model the factors that affect the financial performance of Bank Muammalat, including Capital Adequacy Ratio (CAR), Earning Asset Quality (KAP), Operational Expenses to Operating Income (BOPO), and Financing to Deposit Ratio (FDR) to Return on Assets. (ROA) This research uses secondary data taken based on time series. The analysis technique in this study uses multiple linear regression using SPSS software version 20 and Microsoft Office Excel 2010. The results of this study indicate that partially the CAR and KAP partially do not have a significant effect on Return On. Assets, while Operational Expenses to BOPO and FDR partially have a significant effect on Return on Assets. Simultaneously, these four variables have a significant effect on Return on Assets at PT Bank Muamalat Indonesia. Based on the results of the Determination Coefficient test, the value of Adjusted R Square (R2) is 99.00%, this means that the amount of Return on Assets can be influenced and explained by the variables CAR, KAP, BOPO, and FDR, while the remaining 1% is explained by variables not examined in this study.

scholarly journals Pengaruh Return On Asset (ROA), Debt To Equity Ratio (DER), Dan Earning Per Share (EPS) Terhadap Harga Saham Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 214-230
Author(s):  
Andi Annisa ◽  
Fadliah Nasaruddin ◽  
Mursalim .
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Earnings Per Share ◽  
Equity Ratio

This study aims to examine the effect of return on assets, debt to equity ratio and earnings per share on stock prices at manufacturing companies listed on the Stock Exchange. Data in this study, obtained from the financial statements of manufacturing companies listed on the Stock Exchange. This study uses secondary data by way of observation by visiting the Capital Market Information Center (PIPM) Data analysis method used is multiple linear regression analysis. The results showed that the partial return on assets and earnings per share have a positive and significant effect on stock prices, while the debt to equity ratio has a negative and significant effect on stock prices

scholarly journals Assessing Working Capital Management and Performance of Listed Manufacturing Firms: Nigeria Evidence

2019 ◽  
Vol 11 (2(I)) ◽  
pp. 27-34
Author(s):  
Akinleye G. T. ◽  
ADEBOBOYE Roseline
Keyword(s):  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Insignificant Effect ◽  
Earnings Per Share ◽  
Return On Capital ◽  
Negative Effect ◽  
Collection Period ◽  
And Performance

This study assessed working capital management and performance of listed manufacturing firms in Nigeria 20 firms were sampled, over 10 years. The study employed static data analyses and panel Granger causality test. Result showed that average collection period exerts insignificant negative effect on return on capital employed of the sampled firms, while average collection period also exerts insignificant negative effect on earnings per share of the sampled firms. The result further showed that, average payment period exerts insignificant positive effect on return on capital employed of the sampled firms, but average payment period exerts insignificant negative effect on earnings per share of the sampled firms. The study concluded that, average collection period and average payment exert insignificant effect on return on capital employed of listed manufacturing firms in Nigeria, also; average collection period and average payment period exert insignificant effect on earnings per share of listed manufacturing firms in Nigeria. Hence manufacturing firms in Nigeria should objectively manage average collection period and also maintain a consistent improvement in return on capital employed and earnings per share of listed manufacturing firms in Nigeria.

scholarly journals Debt to Equity Ratio, Return on Asset dan Earning per Share pada PT Adhi Karya Persero Tbk

2021 ◽  
Vol 20 (2) ◽  
pp. 001
Author(s):  
Abdul Fatah Hassanudin ◽  
Irma Rosmayati ◽  
Azis Wira Pratama
Keyword(s):  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Significant Positive Effect ◽  
Return On Assets ◽  
Earnings Per Share ◽  
Library Research ◽  
Analysis Technique ◽  
Equity Ratio ◽  
Positive Effect

This study aims to determine the effect of Debt to Equity Ratio and Return On Assets on Earning Per Share at PT. Adhi Karya Persero Tbk. This study uses the variable debt to equity ratio, return on assets and earnings per share. Researchers used secondary data, namely the Annual Financial Report of PT. Adhi Karya Persero Tbk for the period 2014-2018. The research method used is an associative form using a quantitative approach, data collection namely library research and documentation study. The analysis technique uses multiple linear regression analysis, this study uses SPSS 23 software. The results of this study indicate that the debt to equity ratio and return on assets together have a significant effect on earnings per share. Debt to equity ratio has no significant positive effect on earnings per share. Return on assets has no significant positive effect on earnings per share

scholarly journals Analisis Pengaruh Debt to Equity Ratio (DER), Return On Asset (ROA) dan Earning Per Share (EPS) terhadap Harga Saham melalui Kebijakan Dividen sebagai Variabel Intervening (Studi pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia 2015-2019)

2021 ◽  
Vol 4 (1) ◽  
pp. 75-96
Author(s):  
Muhammad Zakaria
Keyword(s):  
Direct Effect ◽  
Stock Prices ◽  
Indirect Effects ◽  
Dividend Policy ◽  
Secondary Data ◽  
Sampling Technique ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Earnings Per Share ◽  
Equity Ratio

This study aims to determine the effect of debt to equity ratio, return on assets, and earnings per share on stock prices with dividend policy as an intervening variable. Secondary data is used in this quantitative study. Sample is gathered using purposive sampling technique. Data from 23 companies during 5 year are used as the sample. SEM AMOS is used in this study to analyse the data. This study found that return on assets, and earnings per share have significant and direct effect on stock prices and dividend policy. This study also revealed that the debt to equity ratio has no direct effect and significant on stock prices and dividend policy. Results of this study also indicated that the debt to equity ratio, return on assets, and earnings per share do not have indirect effects on stock prices with dividend policy as an intervening variable.Penelitian ini bertujuan untuk mengetahui pengaruh debt to equity ratio, return on asset, dan earning per share terhadap harga saham melalui kebijakan dividen sebagai variabel intervening. penelitian kuantitatif ini menggunakan data sekunder. Sampel dikumpulkan dengan purposive sampling. Didapatkan data dari 23 perusahaan selama 5 tahun yang digunakan dalam sampel penelitian. Analisis data dalam penelitian menggunakan analisis SEM AMOS. Penelitian ini memiliki hasil return on asset, dan earning per share berpengaruh secara langsung dan signifikan terhadap harga saham dan kebijakan dividen. Hasil pengujian juga mengungkapkan debt to equity ratio tidak berpengaruh secara langsung dan signifikan terhadap harga saham dan kebijakan dividen. Hasil penelitian ini juga menunjukkan bahwa debt to equity ratio, return on asset, dan earning per share tidak memiliki pengaruh tidak langsung terhadap harga saham melalui kebijakan dividen sebagai variabel intervening.

scholarly journals INFLUENCE OF LIQUIDITY ON THE FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 1 (3) ◽  
pp. 35
Author(s):  
Dr. Samuel Kanga Odalo ◽  
Dr. George Achoki ◽  
Dr. Amos Njuguna
Keyword(s):  
Financial Performance ◽  
Multivariate Regression ◽  
Secondary Data ◽  
Positive Influence ◽  
Primary Data ◽  
Multivariate Regression Model ◽  
Return On Assets ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Using Data

Purpose: The purpose of this study was to establish the influence of liquidity on the financial performance of agricultural firms listed at the Nairobi Securities Exchange.Methodology: The research design adopted was descriptive and causal (explanatory). A census approach was adopted and all the seven listed agricultural companies were taken as the population. The respondents’ sample was from finance departments at all levels and 220 questionnaires were administered. Primary data was collected using questionnaires while the secondary data was collected using data collection sheets from the firms as well as from the Nairobi Securities Exchange and CMA records. The particular inferential statistic was regression and correlation analysis. Panel data methodology was employed using a multivariate regression model to test the hypotheses and link the variablesResults: The study found out that liquidity has a positive influence on return on assets (ROA). In addition, the findings revealed that liquidity has a positive influence on return on equity (ROE). Further the results indicated that liquidity has a positive influence on earnings per share (EPS). The influence of liquidity on EPS is not statistically significantUnique contribution to theory, practice and policy: The study recommends that financial managers should ensure that there is no mismatch between the current assets and current liability. If this happens, the mismatch will affect the firm’s profitability.

scholarly journals Assets Utilization and Performance of Manufacturing Firms in Nigeria

2019 ◽  
Vol 14 (4) ◽  
pp. 107 ◽  
Author(s):  
G. T. Akinleye ◽  
Adesina Olufemi Dadepo
Keyword(s):  
Annual Report ◽  
Secondary Data ◽  
Manufacturing Firms ◽  
Descriptive Statistics ◽  
Coefficient Of Determination ◽  
Regression Analyses ◽  
Return On Assets ◽  
Current Ratio ◽  
Asset Turnover ◽  
And Performance

This study examined the effect of assets utilization on performance of selected manufacturing firms in Nigeria. Secondary data were collected from the annual report and accounts of the ten selected quoted firms for a period of five years spanning from 2012 to 2016. Data collected were analyzed using descriptive statistics, correlation and regression analyses. The empirical results revealed that asset turnover(ATR) has positive and significant effect on return on assets (ROA) of the selected manufacturing firms as confirmed by the coefficient and probability value of 0.235999(p=0.0000). Current assets ratio also has positive and significant effect on return on assets with the coefficient of 0.109040 (p=0.0035) while debt assets ratio has negative but insignificant effect on return on assets. The overall coefficient of determination (R2)of 0.84951showed that about 85 % of the total variation in the ROA is explained by asset turnover (ATR), current ratio (CUR) and debt-assets ratio (DAR). The study concluded that assets utilization has positive and significant effect on the performance of manufacturing firms in Nigeria and therefore recommended that attention should be purposely paid to optimum asset utilization in the manufacturing firms in Nigeria.

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