scholarly journals The effect of ownership structure, dividend policy, composition of the board of directors on financial performance and share return

Accounting ◽  
2022 ◽  
Vol 8 (1) ◽  
pp. 1-8
Author(s):  
Ida Bagus Anom Purbawangsa ◽  
Henny Rahyuda
Keyword(s):  
Financial Performance ◽  
Stock Returns ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Dividend Policy ◽  
Partial Least Square ◽  
Least Square ◽  
The Board Of Directors

The purpose of this study is to examine and analyze the direct and indirect effects of the variable ownership structure, board composition, dividend policy, and financial performance and stock returns in the manufacturing industry on the Indonesia Stock Exchange. The population of this research is manufacturing industrial companies on the IDX since 2015 and was still active until 2019. The sample obtained is 92 issuers who continuously distribute dividends. Testing the research hypothesis, using the structural equation model (SEM) with the Partial Least Square (PLS) software approach. The results show that the ownership structure significantly affected the composition of the board of directors and dividend policy. Ownership structure has no significant effect on stock returns and financial performance. The composition of the board of directors has a significant effect on dividend policy and financial performance but has no significant effect on stock returns. Dividend policy has a significant effect on financial performance but has no significant effect on stock returns. Financial performance has no significant effect on stock returns.

scholarly journals Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era

2021 ◽  
Vol 13 (17) ◽  
pp. 9947
Author(s):  
Judit Oláh ◽  
Yusmar Ardhi Hidayat ◽  
Zdzisława Dacko-Pikiewicz ◽  
Morshadul Hasan ◽  
József Popp
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Organizational Trust ◽  
Partial Least Square ◽  
Least Square ◽  
Cluster Sampling ◽  
Positive Direction ◽  
Business Partners ◽  
Information And Communication ◽  
Ict Companies

Hungarian Information and Communication Technology (ICT) companies have an essential role to play in a disruptive era. ICT firms should collaborate and innovate to obtain profit. The elusive correlation between trust in business partners and financial performance inspired this study, which proposed innovation as a mediating variable. The research had two objectives: to investigate the effect of inter-organizational trust on financial performance and innovation and to observe the role of innovation in improving financial performance within different categories of ICT companies. The population included active Hungarian ICT firms. The analysis used 100 samples, comprising micro-, small-, and medium-sized ICT corporations. Those samples were selected by random cluster sampling. This research used Partial Least Square Structural Equation Modelling. This study supported the idea that inter-organizational trust improved innovation, and that innovation enhanced financial performance. As an expected finding, innovation could mediate a positive direction between inter-organizational trust and financial performance.

scholarly journals Does environmental performance leverage the impact of environmental strategy on financial performance? A focus on third-party logistic providers

2022 ◽  
Vol 10 (1) ◽  
pp. 29-36 ◽  
Author(s):  
Quang-Huy Ngo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Third Party ◽  
Equation Modeling ◽  
Environmental Strategy ◽  
The Impact

Although prior studies draw upon natural resource-based views, environmental strategy permits competitive advantages, and as such, gains financial performance. However, empirical results are mixed. To shed light on this issue, this study proposes that environmental performance mediates the link between environmental strategy and financial performance. Data were collected from 175 third-party logistic providers currently operating in Vietnam to test the hypotheses. Partial least square structural equation modeling was borrowed to test the data. The results reveal environmental performance partially mediates the link between environmental strategy and financial performance. By considering the mediating effect, this study contributes to the literature by addressing the intervening mechanism of environmental performance on the inconclusive relationship between environmental strategy and financial performance. Besides, this study also extends prior studies by borrowing a concept of environmental strategy, which captures the extent of organizations pursuing this strategy, to explain how and why pursuing this strategy permits environmental and financial performance.

scholarly journals Can Customer Relationship Management Create Customer Agility and Superior Firms’ Performance?

2021 ◽  
Vol 22 (1) ◽  
pp. 175-193
Author(s):  
Vu Minh Ngo ◽  
Hieu Minh Vu
Keyword(s):  
Financial Performance ◽  
Customer Relationship Management ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Relationship Management ◽  
Tourism Industry ◽  
Partial Least Square ◽  
Least Square ◽  
Customer Relationship ◽  
Equation Modeling

The growing importance of Customer relationship management (CRM) and agility in any business are universally accepted and extensively investigated in different disciplines. However, lacking empirical evidence for the suggested theoretical framework of agility and their interrelationships with CRM and superior’s financial performance hinders its application in the practices. Thus, this study attempted to address this issue by drawing on the Resource-Advantage theory of sustainable competitive advantages to examine a mechanism through which CRM implementation can generate sustainable competitive and achieve superior financial performance using the Vietnamese tourism industry context. The framework was tested on data collected from 231 Small and Medium Enterprises (SMEs) using Partial Least Square Structural Equation Modeling (PLS-SEM). Findings suggested that different types of CRM processes do not equally influence customer agility, and not all attributes of customer agility exert positive impacts on firms’ performance as well. Also, CRM performance measurement systems were found to moderate these effects positively and substantially. Several practical implications were also derived from the research findings.

An Assessment of Risk Management Practices of SME Taxpayers in Malawi and their Impact on Tax Compliance

2018 ◽  
Vol 4 (4) ◽  
pp. 7-17 ◽  
Author(s):  
Stella Binauli Nanthuru ◽  
Liu Pingfeng ◽  
Nie Guihua ◽  
Victoria Lucas Mkonya
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Structural Equation ◽  
Management Practices ◽  
Risk Mitigation ◽  
Tax Compliance ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling

This study assesses understanding of Risk, and extent of risk management practices in Small and Medium Enterprise (SME) taxpayers in Malawi, subsequently, investigates their relationship with financial performance and tax compliance. The study focuses on unlimited business sectors of SME taxpayers which drew a representation of our sample of 324 SMEs, using Partial Least Square-Structural Equation Modeling (PLS-SEM) to analyze and test hypotheses. Results indicate that half of the SME taxpayers are aware of risks, but only 23% of respondents underwent any training on risk management. 90% of respondents revealed that tax rates are the most significant business constraint; value-added tax (VAT) being the most challenging tax to file. Most respondents identified risks through experience, with risk management practices centering on Chief Executive Officers. Empirical evidence on Path analysis and bootstrapping results established a significant relationship between understanding risks, risk management practices, financial performance and Tax compliance, which is positive, signaling a roadmap for risk mitigation if tax administration is to widen its SME tax net.

scholarly journals PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Empiris Perusahaan Sektor Pertambangan dan Pertanian yang Terdaftar Di Bursa Efek Tahun 2012-2014)

2017 ◽  
Vol 2 (02) ◽  
Author(s):  
Rachmat Harisianto ◽  
Dewi Sutjahyani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Economic Performance ◽  
Structural Equation ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Social

ABSTRACTThis research was conducted to analyze the effect of Corporate Social Responsibility performance indicators Economic, Environmental, and Social on financial performance. This study was made to determine how the implementation of Corporate Social Responsibility Financial Performance. The method used in this research is quantitative method and the population is a company mining and agricultural sectors listed in Indonesia Stock Exchange in 2012-2014, using data analysis SEM (Structural Equation Modelling) by the application program PLS (Partial Least Square) version 3.2. 1. Results obtained indicate that Corporate Social Responsibility (CSR) of the three indicators Economic Performance (KE), Environmental Performance (KL), Social Performance (KS) to the company's financial performance and Agriculture Mining sector not significant coefficient -0317 parameter Corporate social yangberarti responsibility (CSR) to the financial performance had a negative relationship which means no direction opposite relationship. Keywords: Influence of Corporate Social Responsibility of the three indicators Economic Performance, Environmental, and Social the Financial Performance.

scholarly journals FINANCIAL PERFORMANCE IMPLICATIONS ON BUM DESA INVESTMENT DIVERSIFICATION

2021 ◽  
Vol 9 (06) ◽  
pp. 837-845
Author(s):  
Udin Suadma ◽  
◽  
Sutjipto a ◽  
Suratno b ◽  
Mattjik c ◽  
...  
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
P Value ◽  
Working Capital ◽  
Using Data ◽  
The Many ◽  
The Village

BUM Desa in Banten Province has not been maximized in improving the economy of the Village community as shown by the many inactive BUM Desa. BUM Desa has not been able to create business diversification that comes from financial performance in this study, namely Return on Investment (ROI). A total of 80 BUM Desa were studied as a result of purposive sampling from a population of 688 BUM Desa in Banten Province. The criteria for selecting samples were (1) registered BUM Desa (2) BUM Desa is active, and (3) active Village BUM that has capital ≥ Rp. 30,000,000. This study uses explanatory and descriptive methods using data analysis tools Partial Least Square Structural Equation Model (PLS-SEM). The results showed that financial performance had a positive effect on the Village-Owned Enterprise Diversification stage with t-value = 4.527, p-value = 0.000 <0.05, meaning that Ha was not enough data to accept Ho and data supporting Ho was rejected. Based on the description of the results and the study shows that good financial performance means being able to generate profits from sales and total assets, as well as capital. Meanwhile, diversification can be created if the turnover of working capital occurs quickly. The faster the working capital rotates, the better the BUM Desas financial performance will be. Therefore, BUM Desa has high financial performance can diversify investment.

scholarly journals Education Level of The Board of Directors and Financial Performance of Go Public Banks at The Indonesia Stock Exchange

2021 ◽  
Vol 14 (3) ◽  
pp. 264
Author(s):  
Muhammad Madyan ◽  
Rayindha Galuh Setyowati ◽  
Wulan Rahmadani Setiawan
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Formal Education ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Education Level ◽  
Least Square ◽  
Significant Positive Effect ◽  
The Board Of Directors ◽  
Positive Effect

Having experience, knowledge, and expertise in banking is important for the board of directors to properly manage its activities, which is indicated by their financial performance. This study investigates the effect of the formal education level of the board of directors on financial performance in terms of profitability. The sample used in this study was 31 banking companies, especially conventional commercial banks listed on the Indonesia Stock Exchange in 2009-2018, with 244 observations. This study uses multiple linear regression analysis with the Ordinary Least Square (OLS) approach. In this study, the dependent variables used are Return On Assets (ROA) and Net Interest Margin (NIM). The independent variables used are the level of education of the board of directors divided into Master and Ph.D. This study indicates that the board of directors with the highest educational level of Masters and Ph.D has a significant positive effect on ROA. Meanwhile, the board of directors with the and education level of Masters has a significant negative effect, and the board of directors with the highest education level of Ph.D has a significant positive effect on NIM.

scholarly journals MODAL INTELEKTUAL DAN KINERJA KEUANGAN : KEUNGGULAN BERSAING SEBAGAI VARIABEL INTERVENING

2021 ◽  
Vol 2 (2) ◽  
pp. 239-258
Author(s):  
Muhammad Fahri Azmi ◽  
Yusralaini Yusralaini ◽  
Rofika Rofika
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Financial Services ◽  
Structural Equation ◽  
Negative Influence ◽  
Positive Influence ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Positive Effect

This study aims to see the effect of VACA, VAHU, STVA, and VAIC on financial performance and competitive advantage, as well as the role of competitive advantage in mediating the effect of VACA, VAHU, STVA, and VAIC on financial performance. The population in this study is Islamic commercial banks registered with the financial services authority in 2016-2018. The sample of this research was selected by sampling criteria. Hypothesis testing used in this research is Structural Equation Modeling with Partial Least Square (SEM-PLS) approach and the statistical test tool used is WarpPLS 7.0. The results of this study indicate that VACA has a positive influence on financial performance, VAHU has a negative influence on financial performance while STVA and VAIC do not affect financial performance. Furthermore, this study found that VACA, STVA, and VAIC had a positive effect on competitive advantage and competitive advantage also has a positive effect on financial performance. This research also found that, while VAHU did not affect the competitive advantage that competitive advantage plays a role in mediating the effect of VACA and VAIC on financial performance, whereas competitive advantage does not mediate the effect of VAHU and STVA on financial performance.

The influence of the quality criteria on the quality cost of suppliers in SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ehsan Masoudi ◽  
Arash Shahin
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Quality Criteria ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Quality Cost ◽  
Content Type ◽  
Quality Costs

PurposeAfter quality costing, most companies do not know how to invest in supplier quality improvement. This study aims to develop a comprehensive model for the effect of supplier quality criteria on supplier quality costs.Design/methodology/approachThe independent variable of supplier quality criteria and the dependent variable of supplier quality costs have been identified based on a literature review. Then a model has been developed for the effect of the variables. A questionnaire has been designed and distributed to 158 small and medium enterprises (SMEs) in Jey Industrial Town located in the Isfahan Province. Structural equation modeling and partial least square structural equation modeling (PLS-SEM) have been used for data analysis.FindingsSupplier quality criteria influenced supplier quality costs (with a value of 0.711). The results also implied that organizational quality had the highest impact. The appraisal costs and the internal failure costs of purchasing received most of the influence. Also, process quality and consequential costs of failure purchasing had the lowest influencing and influenced values.Practical implicationsThe findings of this research encourage the managers of SMEs to evaluate and rank the most appropriate quality criteria related to quality costs for selecting a supplier as one of the most fundamental decisions in supply chain management.Social implicationsAppropriate selection of quality criteria influencing quality costs results in reduced quality cost. Quality cost reduction also results in decreased products' fixed prices. Ultimately, the company will have more competitive pricing, and consumers will benefit from such a significant advantage.Originality/valueStudying the influence of supplier quality criteria on supplier quality costs is relatively new in the manufacturing industry. The comprehensiveness of the investigated variables is also another advantage of the proposed model.

Impact of external integration capabilities of third-party logistics providers on their financial performance

2016 ◽  
Vol 27 (2) ◽  
pp. 263-283 ◽  
Author(s):  
Chiung-Lin Liu ◽  
Pei-Yu Lai
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
Comprehensive Plans

Purpose – Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs and their customers, known as the external integration of 3PLs, not only allows 3PLs to respond rapidly to shippers’ needs but also to increase customer satisfaction and the effective allocation of resources while increasing operational efficiency (such as by proposing comprehensive plans for future logistics services to meet shippers’ demands). The purpose of this paper is to investigate the causal relationships among the external integration capabilities, cost advantages, and the financial performance of 3PLs. Design/methodology/approach – A survey of 3PLs in Taiwan and China was performed. The research model was tested using a structural equation modeling technique along with the partial least square (PLS-SEM/PLS) approach. Findings – The results herein demonstrated a positive relationship between 3PLs’ external integration capabilities and resource efficiency. The results also suggested that cost competitiveness positively affected the financial performance of 3PLs. Although the external integration capabilities of 3PLs were not found to directly affect their financial performance, the results in this study indicated that external integration capabilities enable a firm to improve financial performance by capturing cost advantages. Originality/value – This study provides useful information about the effects of external integration capabilities on the financial performance of 3PLs in a bi-regional context. The sample in this study was drawn from the 3PL industry in Taiwan and China, enabling a comparative analysis of these two countries of similar cultural backgrounds but different degrees of development of their logistics industry and different related demands.

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