Evaluating Financial Performance of Saudi Listed Firms: Using Statistical Failure Prediction Models

The study aims to compare the classification power of three statistical failure prediction models for evaluating financial performance of Saudi Listed Firms. The study sample consisted of 122 listed industrial companies in the Saudi Stock Exchange for the period from 2014 to 2016. Altman model 1968, Kida model and Zmijewski are used as examples of statistical failure prediction models to evaluate the classification power of the given models to assess the financial performance of firms listed on Saudi Stock Exchange. The results showed that Zmijewski model was more powerful in predicting the financial performance of Saudi listed firms than Altman model (1986) and Kida model. The results showed that there are a statistical relationships between some ratios included in the three models and the financal performance of industrial companies, which was measured by EPS. The study recommended users of financial statements of Saudi listed companies to use Zmijewski ?model, which performs well in evaluating their finacial position to be used when making the ?financial decisions.

Download Full-text

The Influence of Acquisitions on a Firm’s Performance within a Sector: An Application on Istanbul Stock Exchange

International Conference on Eurasian Economies 2014 ◽

10.36880/c05.01111 ◽

2014 ◽

Author(s):

İbrahim Halil Ekşi ◽

Nasara Banu Güzel ◽

Rabia Ecem Küçüktaşdurmaz

Keyword(s):

Mergers And Acquisitions ◽

Financial Performance ◽

Stock Exchange ◽

Topsis Method ◽

Listed Firms ◽

Positive Effects ◽

Istanbul Stock Exchange

In recent years it have seen a significant increase in the number of business mergers and acquisitions. There are number of reasons led to this trend. Amongst them it is the need to increase the firm financial performances. This paper mainly is focuses on other different effects of mergers and acquisitions on the financial performance of businesses. In this study, looking at Turkish stock exchange listed firms that have experienced acquisitions or mergers and the effects of such mergers on their performance. In this context, it be looked at textile firms and firms based on stone and land work that experienced acquisitions in 2010. The firms are Altinyildiz in textile and Çimbeton in the mining sectors respectively. Having look at the financial performances of these firms in their respective sectors before the acquisitions (2007, 2008, 2009), the acquisitionsin 2010, 9 rates were used the in TOPSIS method. According to findings, the acquisitioned firm’s show that they have positive effects on the financial performances of the firms. It is observed that there are differences in sectors’ period and degrees. In this case, it’s possible to explain the sectoral dynamics and acquisions of the firms’ integration.

Download Full-text

The Impact of Capital Structure on the Financial Performance of the Jordanian Industrial Companies Listed on the Amman Stock Exchange for the Period 2012-2015

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v9i2.12076 ◽

2018 ◽

Vol 9 (2) ◽

pp. 369

Author(s):

Shireen Mahmoud AlAli

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Stock Exchange ◽

Return On Assets ◽

Return On Equity ◽

Industrial Companies ◽

Earnings Per Share ◽

Amman Stock Exchange ◽

The Impact ◽

The Capital Structure

The purpose of this study was to identify the effect of the capital structure as a percentage of total liabilities to total assets on the financial performance of the Jordanian industrial companies listed on the Amman Stock Exchange for the period 2012-2015.The study population included all the Jordanian general industrial companies listed on the Amman Stock Exchange. The sample of the study included 10 industrial companies listed on the Amman Stock Exchange. The linear regression analysis was used to test the relationship between variables using the ordinary least squares method (OLS).The results showed that there is a positive significant impact on the capital structure of the industrial shareholding companies listed in the Amman Stock Exchange as measured by the ratio of equity to total assets, return on equity and return on assets and net earnings per share as an indicator of financial performance.The results also showed a negative significant impact on the capital structure of industrial shareholding companies listed on the Amman Stock Exchange as measured by total liabilities to total assets, return on equity and return on assets as an indicator of financial performance, and net earnings per share as an indicator of the financial performance indicators.

Download Full-text

The Relationship between environmental Financial accounting practices and Financial performance of industrial listed companies in Palestine Stock Exchange

Addaiyan Journal of Arts, Humanities and Social Sciences - Volume-1: Issue-10 (December, 2019) ◽

10.36099/ajahss.3.10.2 ◽

2021 ◽

pp. 12-31

Author(s):

Nedal Fareed Abdallah

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Listed Companies ◽

Least Square ◽

Financial Accounting ◽

Listed Firms ◽

Effect Model ◽

The Relationship

The research aimed to investigate the applicability of environmental financial accounting practices in the industrial listed companies in Palestine Exchange and to examine the relationship between the disclosure level of environmental financial accounting practices on the company’s financial performance. The research adopted the descriptive-analytical approach, and the analysis method involved a content analysis of the annual financial reports data which were collected from Industrial listed firms on the Palestine Stock Exchange for the period from 2015 to 2019, including the firms disclosed and not disclose EFAP. Ordinary least square (OLS), fixed effect model (FEM), and random effect model (REM) were employed for processing the data. The results reveal that there is a relationship between the EFAP and financial performance. In addition, there is a difference in financial performance between the group of firms disclosed and not disclosed EFAP. Based on the findings, some recommendations are given for motivating EFAP in the listed firms for improving financial performance.

Download Full-text

Gender, Corporate Risk Taking and Performance: Evidence from Indonesia

Sebelas Maret Business Review ◽

10.20961/smbr.v1i1.1424 ◽

2017 ◽

Vol 1 (1) ◽

Author(s):

Agista Putri Prameswari

Keyword(s):

Financial Performance ◽

Risk Taking ◽

Stock Exchange ◽

Gender Diversity ◽

Listed Firms ◽

Board Of Director ◽

And Performance ◽

Female Director ◽

Performance Results ◽

Corporate Risk

This study examines the effect of gender diversity in the board of director on firm leverage and financial performance. Arguably, the more the proportion of female director on board, the corporate risk taking and performance should be lower. The study uses data of listed firms in Indonesia Stock Exchange over the period of 2010-2014. The results show that the presence of female directors on the board is negatively associated with leverage. The similar result is also found on the effect of female director on the board on firm performance. Results also reveal that education background does not moderate the link between women presence on leverage and performance.

Download Full-text

The Manufacture and Service Companies Differ Leverage Impact to Financial Performance

International Journal of Financial Research ◽

10.5430/ijfr.v11n2p281 ◽

2020 ◽

Vol 11 (2) ◽

pp. 281

Author(s):

Intan Shaferi ◽

Sugeng Wahyudi ◽

Wisnu Mawardi ◽

Riskin Hidayat ◽

Intan Puspitasari

Keyword(s):

Financial Performance ◽

Service Sector ◽

Stock Exchange ◽

Control Variable ◽

Listed Firms ◽

Service Companies ◽

Manufacture Sector ◽

Negative Effect ◽

Service Sectors ◽

Two Sectors

The purpose of this research is to examine the leverage from firm. The firms use leverage to expand their source of fund by using external fund such as debt. By usingdebt, financial performance of the firm will develop. Beside the leverage, the use of size and inflation are also considered to be the factors that influence the financial performance while the firms are using leverage. As an independent variable, size is reflected by the assets and the leverage or debt by using the debt ratio to the total of assets. Then,the financial performance is reflected by using the return on the measured assets. Inflation as a control variable is included in this research to know the effect towards the financial performance. In this research, firms are divided into two sectors, there are manufacture and service sector. By using the manufacture and service sectors in order to know each effect of leverage toward the financial performance, this research focuses to the unique characteristic of these two sectors. Knowing which sector is influenced more by the leverage than the others, will guide the urgency of this research. This research used the pooled data regression method, 468 data entries of 156 listed firms in Indonesian Stock Exchange. This research was conducted from 2015 until 2017. The result shows that leverage significantly has a negative effect towardthe financial performance and the size positively influences financial performance. Manufacture sector is influenced more in leverage towardsthe financial performance, and the service sector is influenced more on size towardsthe financial performance.

Download Full-text

Social Responsibility and Its Impact on Financial Performance in Companies Listed on the Amman Stock Exchange

International Journal of Business and Management ◽

10.5539/ijbm.v14n3p174 ◽

2019 ◽

Vol 14 (3) ◽

pp. 174

Author(s):

Abed Alwahab AL-Rawashdeh ◽

Faten Ameen Al Nuaimi

Keyword(s):

Social Responsibility ◽

Financial Performance ◽

Stock Exchange ◽

Statistical Significance ◽

Multiple Linear Regressions ◽

Industrial Companies ◽

Study Results ◽

Amman Stock Exchange ◽

Linear Regressions

The main purpose of this study was to clarify the expenditure of Jordanian Industrial Companies on social responsibility and its impact on financial performance, and the researchers used multiple linear regressions to test the hypothesis of the study. Results showed that social responsibility has a statistical significance on the financial performance of the Jordanian industrial companies. The study recommended, more efforts to increase the interest of Jordanian industrial companies’ social responsibility towards the environment, in general and in particular, to increase investment of Jordanian Industrial Companies, using their resources in education, health, and infrastructure to achieve their share of responsibility towards the society.

Download Full-text

Financial Leverage and Firms’ Performance: Empirical Investigation of KSE-100 Index

ETIKONOMI ◽

10.15408/etk.v17i1.6102 ◽

2018 ◽

Vol 17 (1) ◽

pp. 45-56 ◽

Cited By ~ 3

Author(s):

Farhan Ahmed ◽

Iqra Awais ◽

Muhammad Kashif

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Stock Exchange ◽

Optimal Level ◽

Annual Data ◽

Financial Leverage ◽

Return On Assets ◽

Return On Equity ◽

Listed Firms ◽

The Impact

Capital generation to fund everyday operations and long-term expansions is a constant concerning element in the corporate world. This study aims to investigate the optimal level of capital structure that firms can adopt to improve their financial performance given the industry dynamics and economic circumstances of the country. Using Hausman’s specification test, annual data for the period 2005 – 2014 of Karachi Stock Exchange (KSE) 100 index listed securities has been collected to analyze the impact of financial leverage on the firms’ performance. Return on assets, return on Equity, and TOBIN’s Q are the proxies of financial performance analyzed against financial leverage for the KSE 100 index listed firms. The finding of the paper indicates that capital structure, leverage, interest cover and sales growth as most significant variables impacting firms’ profitability. DOI: 10.15408/etk.v17i1.6102

Download Full-text

The relationship between CEO compensation and financial performance in Jordanian public shareholding industrial companies

Investment Management and Financial Innovations ◽

10.21511/imfi.17(2).2020.19 ◽

2020 ◽

Vol 17 (2) ◽

pp. 240-254

Author(s):

Marie H. Bani Khaled

Keyword(s):

Financial Performance ◽

Significant Relationship ◽

Chief Executive Officers ◽

Ceo Compensation ◽

Stock Exchange ◽

Secondary Data ◽

Chief Executive ◽

Industrial Companies ◽

Q Model ◽

The Relationship

This study aimed to examine the relationship between the compensation received by chief executive officers (CEOs) and the financial performance of Jordanian public shareholding industrial companies listed on the Amman Stock Exchange (ASE) from 2010 to 2017. To measure the variables of interest, secondary data published on the ASE website were processed to become preliminary data suitable for the study. The study population consisted of 56 companies, 25 of which met the inclusion criteria. The results of the analysis of the data on these 25 companies revealed a large difference between the amount of financial compensation received by CEOs and the earnings per share (EPS) received by shareholders. The results also showed a statistically positive and significant relationship between the amount of CEO compensation and the financial performance of industrial companies. Furthermore, return on assets (ROA), EPS, and leverage have a statistically negative and significant relationship with financial performance. However, the net profit margin has a statistically positive and significant relationship with financial performance. Besides, the results showed a positive and significant relationship between the age of the CEO and the amount of compensation received. On the other hand, Tobin’s Q model demonstrated that the relationship between CEO duality and the amount of CEO compensation is not statistically significant. Therefore, the study recommends using more than one type of compensation for the CEOs of public shareholding industrial companies in Jordan and that CEO compensation should be related to financial performance.

Download Full-text

The Effect of Liquidity and Total Asset Turnover on Profitability: Research Study n Pharmaceutical Companies in Indonesia Stock Exchange

EKONOMIS Journal of Economics and Business ◽

10.33087/ekonomis.v5i2.400 ◽

2021 ◽

Vol 5 (2) ◽

pp. 444

Author(s):

Jocelyn Rajagukguk ◽

Harlyn Siagian

Keyword(s):

Financial Performance ◽

Research Study ◽

Stock Exchange ◽

Negative Relationship ◽

Total Asset ◽

Pharmaceutical Companies ◽

Significant Negative Relationship ◽

Negative Effect ◽

Asset Turnover ◽

The Given

Management companies will seize opportunities in order to improve financial performance. To measure the financial performance it will need the tool to measure it. Profitability ratio is a ratio to assess the company's ability to seek profit. And in this research it stated that liquidity and total asset turnover can affected profitability. The population of this study uses data from pharmaceutical companies listed on the Indonesia Stock Exchange in 2015-2019. So, it has 9 companies according to the given category. In total there are 45 samples used in this research. The result of this research are that liquidity has a negative effect on profitability, and so the total assets turnover on profitability. Simultaneously, liquidity and total asset turnover have a significant negative relationship to profitability.

Download Full-text

Financial Performance Feedback and R&D: A Comparison of Different Models

Quality Innovation Prosperity ◽

10.12776/qip.v1i1.1034 ◽

2018 ◽

Vol 22 (1) ◽

pp. 01 ◽

Cited By ~ 1

Author(s):

Michal Jirásek

Keyword(s):

Panel Data ◽

Financial Performance ◽

Empirical Research ◽

Performance Feedback ◽

Performance Indicators ◽

Stock Exchange ◽

Empirical Studies ◽

Current Strategy ◽

Listed Firms ◽

Performance Factors

Purpose: Performance feedback either supports or undermines a firm’s current strategy. R&D is one of the most favoured proxies for a firm’s response to performance feedback and this relation complements the commonly studied influence of innovation (R&D) on a firm’s performance with a backward loop. The performance feedback literature works with a number of models used to empirically test these propositions and this study aims to compare the most common measures and models to locate potentially preferred alternatives for further research.Methodology/Approach: The research uses panel data with 1,558 observations. The sample consists of 208 US stock exchange listed firms followed over the years 2001-2015.Findings: The research suggests that models with separate historical and social aspirations may yield a slightly better fit with the data. However, the findings also indicate differences among R&D related dependent measures and their implications for empirical research. These differences arguably also reflect the underlying construct heterogeneity, therefore, researchers should work carefully with them to correctly explain their findings and provide results comparable to the previous literature.Research Limitation/implication: The limitations of the research rose mainly from the limited number of performance factors studied, which stems from an emphasis on standard financial performance indicators.Originality/Value of paper: The research contributes to the performance feedback literature by complementing a previous study that compared different aspiration models (Bromiley and Harris, 2014). By focusing on financial performance and R&D variables, the research offers the first concise entry point for researchers considering empirical studies on financial performance feedback and R&D relationship.

Download Full-text