The impact of financial liquidity and leverage on financial performance: Evidence from property and real estate enterprises in Indonesia

This article tries to understand the relationship between agency cost, debt financing and Indian real estate companies’ performance. The study attempts to document the effect of debt on the firm’s profitability and then explores the reason behind such an impact by introducing the agency cost as a parameter. The study is conducted in two phases. Phase I is carried out to establish the relationship between debt financing and the firm’s financial performance. In Phase II, the study is conducted to understand the impact of agency cost on debt financing. Firms from the BSE Realty Index were selected for the period 2011–2018. Profitability is measured through return on equity (ROE), whereas debt financing is measured through the firm’s leverage ratio. The agency cost is measured through the asset utilisation ratio and general expense to sales ratio. Panel regression method is used to understand the impact of debt financing and agency cost on the firms’ profitability. The result of Phase I suggests a significant negative relationship between debt financing and the ROE and the result of Phase II suggests a positive relationship between the agency cost and debt financing. This means that reduction in agency cost will lead to lesser amount of debt financing thereby improving the firm’s financial performance.

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Faktor-Faktor Yang Mempengaruhi Rasio Keuangan Sebagai Prediktor Dari Kinerja Keuangan Perusahaan

Jurnal Ekonomi ◽

10.24912/je.v26i3.800 ◽

2021 ◽

Vol 26 (3) ◽

pp. 433

Author(s):

Ringke Dirdia, Deci N. Carani, H. S. Lestari

Keyword(s):

Real Estate ◽

Financial Performance ◽

Price Index ◽

Stock Exchange ◽

Consumer Price Index ◽

Sampling Technique ◽

Company Size ◽

Sales Growth ◽

Manufacturing Companies ◽

The Impact

This study aims to examine the impact of the quick ratio, total assets turnover, leverage, company size, sales growth, and the consumer price index on the financial performance of companies in the property and real estate sub-sector manufacturing companies listed on the Indonesia Stock Exchange during the 2016-2020 period. a total of 39 companies. The sampling technique was purposive sampling method. Data analysis using Eviews 10 software. Regression analysis technique is used to more on the influence of financial factors on the company's financial performance, as a result it can be relied upon to be the basis for conveying suggestions. The results of the analysis share that total assets turnover, leverage, sales growth, and the consumer price index have an impact on financial performance as measured by ROS and ROE. The quick ratio and company size have no effect on the financial performance of the property and real estate sub-sector manufacturing companies listed on the Indonesia Stock Exchange.

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THE IMPACT OF REAL ESTATE INVESTMENTS ON THE PERFORMANCE OF THE ENTITIES LISTED AT THE BVB

The Annals of the University of Oradea. Economic Sciences ◽

10.47535/1991auoes30(1)019 ◽

2021 ◽

Vol 30 (30 (1)) ◽

pp. 177-186

Author(s):

Silviu Cornel Virgil Chiriac

Keyword(s):

Principal Component Analysis ◽

Real Estate ◽

Financial Performance ◽

Descriptive Analysis ◽

Composite Index ◽

Principal Component ◽

Component Analysis ◽

Multidimensional Data ◽

Data Set ◽

The Impact

The current paper is part of a wider study which aims at identifying the determining factors of the performances of the entities in the real estate field and the setting up of a composite index of the companies’ performances based on a sample of 29 companies listed at the BVB Bucharest (Bucharest Stock Exchange) in the year 2019 using one of the multidimensional data analysis techniques, the principal component analysis. The descriptive analysis, the principal component analysis for setting up the composite index of the companies performances were applied within the study in order to highlight the most important companies from the point of view of the financial performance. The descriptive analysis of the data set highlights the overview within the companies selected for analysis. The study aims at building a synthetic indicator that will show the financial performance of the companies selected based on 9 financial indicators using the principal component analysis PCA. The 9 indicators considered for the analysis were selected based on specialised articles and they are: ROA – return on assets, which reflect the company’s capacity of using its assets productively, ROE – return on equity, which measures the efficiency of use of the stockholders’ capitals, rotation of total assets, general liquidity ratio, general solvency ratio, general dent-to-equity level, net profit margin, gross return of portfolio.

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The Impact of Monetary Policy Changes on the Performance of Real Estate Firms-Based on the Research of Real Estate Enterprises Listed on Shanghai and Shenzhen A-share Market

Proceedings of the 2018 2nd International Conference on Education Science and Economic Management (ICESEM 2018) ◽

10.2991/icesem-18.2018.105 ◽

2018 ◽

Author(s):

Xiang Cheng

Keyword(s):

Monetary Policy ◽

Real Estate ◽

Policy Changes ◽

Real Estate Enterprises ◽

The Impact ◽

A Share

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The Impact Of Psak 72 Implementation On Financial Performance In The Pandemic Time Covid-19 (Empirical Study On Real Estate Companies Registered In Indonesia Stock Exchange)

SENTRALISASI ◽

10.33506/sl.v10i1.1157 ◽

2021 ◽

Vol 10 (1) ◽

pp. 12

Author(s):

Duwi Rahayu Rahayu ◽

Imelda Dian Rahmawati ◽

Dina Dwi Oktavia Rini

Keyword(s):

Real Estate ◽

Empirical Study ◽

Financial Performance ◽

Negative Impact ◽

Stock Exchange ◽

Secondary Data ◽

Significant Negative Effect ◽

Negative Effect ◽

Real Estate Company ◽

The Impact

The purpose of this study is to examine the impact of the implementation of PSAK 72 on financial performance during the Covid-19 pandemic (empirical study of real estate companies listed on the Indonesian stock exchange). This research is a quantitative research, where the data used are secondary data in the form of financial statements of real estate companies. The sample of this study is a real estate company that provides periodic financial reports on the Indonesia Stock Exchange in 2019 and the second quarter of 2020 with a total of 46 sample companies. The results of the study indicate that PSAK 72 has a significant negative effect on the liquidity ratio, profitability ratio, activity ratio, and market ratio, while the implementation of PSAK 72 has no significant effect on the solvency ratio. This show, although the implementation of PSAK 72 has had a significant negative effect, companies have started to prepare for the implementation of PSAK 72 by conducting evaluations, adaptations and training for employees before actually implementing PSAK 72. The meaning of not fully implementing PSAK 72 has a negative impact on real estate company earnings, because the implementation of these standards was also followed by the Covid-19 pandemic which also resulted in a decrease in income for companies.

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Impact of the Reduction of VAT Rate on Southeast Coastal Real Estate Enterprises

Discrete Dynamics in Nature and Society ◽

10.1155/2021/5652128 ◽

2021 ◽

Vol 2021 ◽

pp. 1-11

Author(s):

Yu Liu ◽

Linghui Kong ◽

Yanhua Zhang

Keyword(s):

Real Estate ◽

Cash Flow ◽

Positive Impact ◽

National Policy ◽

Value Added ◽

Upward Trend ◽

Tax Rate ◽

Operating Income ◽

Real Estate Enterprises ◽

The Impact

This paper takes the southeast coastal real estate listed enterprises that have been at the forefront of China’s reform for many years as the research object. Through theoretical analysis and descriptive statistical analysis, it studies the impact of the reduction of VAT (value-added tax) rate in 2019 on the southeast coastal listed real estate enterprises from the perspectives of sales revenue, costs, tax burden, profit, and cash flow. The overall operating tax rate has shown a volatile downward trend; the average operating income level has shown a volatile upward trend; the purchase cost has decreased slightly and the change was not significant; the total profits of enterprises have shown a cyclical upward trend. Due to the impact of the real estate purchase restriction policy and financing environment in recent years, the reduction of tax rate has an effective but not significant impact on the enterprise cash flow. Overall, the tax rate reduction still has a positive impact on enterprises. Combined with the problems in the process of policy implementation, this paper puts forward that those enterprises should make scientific and reasonable tax planning, pay attention to the management of purchase and sales contracts and the mode of cooperation with upstream enterprises, regulate taxation to reduce tax-related risks, improve the management level of enterprises, and establish an industry finance integration system. At the national policy level, there is limited room and effect for the reduction of the VAT rate, and more preferential tax relief policies should be given directly, not limited to VAT, but can be extended to corporate income tax. In this way, that could improve the effectiveness of the tax reduction policy in the southeast coastal real estate industry and provide a reference for relevant industries in other regions to solve similar problems.

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