scholarly journals Human Capital Reporting (HCR) and Shareholder Value Maximization in Listed Manufacturing Firms in Nigeria

2021 ◽  
Vol 12 (4) ◽  
pp. 168
Author(s):  
Ademola Adeniran Adewumi ◽  
Ilesanmi Isaac Omole ◽  
Amos Olatunbosun Talabi ◽  
Godwin Gabriel Omula
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Firm Value ◽  
Manufacturing Firms ◽  
Share Price ◽  
Annual Reports ◽  
Earnings Per Share ◽  
Ex Post ◽  
Distributional Dynamics ◽  
The Impact

This study examines the impact of human resource reporting (HCR) or disclosures on share price and earnings potential measured by the earnings per share. It adopts an ex-post causal research design and employs secondary data retrieved from annual reports of 30 selected manufacturing firms in Nigeria. Data was analyzed using descriptive statistics, correlation analysis and the quantile regression techniques. The research outcome from the distributional dynamics for share price tends to highlight that the effect of HRD-Index is significant at 5% for firms at high levels above average financial performance at Q[0.2.] - Q[0.4] and also significant at 5% for firms at average levels of firm value Q[0.5] and even below average levels Q[0.6]-Q[0.9]. Finding thus highlights that the impact of human resource disclosures on share price or market value may not necessarily be a function of the share price levels. The distributional dynamics for EPS used as the measure for earnings potential is similar to that which was observed for Share price and tends to highlight that the effect of human resource disclosure is significant at 5% for firms at high levels above average earnings per share measure of financial performance at Q[0.1], Q[0.2.], Q[0.3.] and Q[0.4.] and also significant at 5% for firms at average levels of financial performance Q[0.5] and even below average levels Q[0.6]-Q[0.8]. The recommendation is that human resource investments should not been looked at as an expense but as a competitive strategy of the firm.

scholarly journals How Does Debt Financing Affect Financial Performance? A Study of Transport Companies Listed in Pakistan

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Ulfat Abbas ◽  
Sohail Aziz ◽  
Samina Khan
Keyword(s):  
Financial Performance ◽  
Debt Financing ◽  
Annual Reports ◽  
Transport Sector ◽  
Return On Assets ◽  
Secondary Sources ◽  
Earnings Per Share ◽  
The Impact ◽  
Retained Earnings

  Purpose: The purpose of this paper investigates the impact of debt financing on airline’s (transport) sector performance of Pakistan. Design/Methodology/Approach: We gathered the data from secondary sources. In this study, we used a data sample of 11 years from 2008-2018 by using companies annual reports. Due to unavailability of data, only 3 transport companies have been taken for analysis. The software which we used in analysis is SPSS (Statistical Package for Social Science). Findings: The findings of the study suggests that there is opposite relationship between debt financing and financial performance of airlines. Debt is measured from three ratios, short term debt to total assets, long term debt to total assets and total debt to total assets ratio. For the measurement of performance, we used return on assets and earnings per share. We concluded on the basis of findings that the companies should focus on retained earnings which is cheaper source of finance and use less level of debt. As the more level of debt use by the companies, the performance of companies’ decrease. Implications/Originality/Value: There is only one study is available in Pakistan which used transport sector in Pakistan in debt financing context                                                          

scholarly journals The Impact Analysis of Privatization and Shariah Screening on Financial Performance and Shares Return of State Owned Enterprises as the member of Jakarta Islamic Index

2017 ◽  
Vol 2 (1) ◽  
pp. 13-41
Author(s):  
Mursid Lubis ◽  
Yuzwar Z. Basri ◽  
Tatik Mariyanti
Keyword(s):  
Financial Performance ◽  
Impact Analysis ◽  
Descriptive Analysis ◽  
Simultaneous Equation ◽  
Share Price ◽  
State Budget ◽  
Stock Performance ◽  
Ex Post ◽  
Equity Ratio ◽  
The Impact

Privatization is one of the government’s programs in restructuring State-Owned Enterprises (SOEs). Other than restructuring SOE, privatization is also source of state budget funds (APBN). By privatizing SOE, government expected healthy corporation that will contribute larger tax payments, dividend payments, and additional paid-in capital. So it is expected that SOEs are always in a healthy condition, high competitive and produce goods quality products and services.In order to invite Islamic foreign investors. Now also available public listed SOEs that is according to Islamic sharia. SOE sharia shares are expected to be an example of implementing business in accordance to sharia, will benefit better financial performance and better share price. Eight SOEs who are members of the Jakarta Islamic Index, those are WSKT, WIKA, PTPP, SMGR, TLKM, PTBA, ANTM and PGAS, will be evaluated in this research regarding their financial performance and stock performance during the period 2000 to 2016.This research is included in descriptive research method that is ex post facto. The researcher evaluated the company's financial performance and stock performance during the 17-year period, from 2000 to 2016, financial performance measured is profitability performance (NPM, ROA and ROE), solvency (Total Asset Turnover) activity (Debt to Equity Ratio). The measurement of stock performance those are EPS. PER and PBV. Data analysis used in this research is descriptive analysis, trend analysis and Test t test.Based on the results of the study, the variable condition before the regression, NPM, ROA, ROE, DER, DR, DI, S / TA, EPS, PER and PBV variables have scattered residues normally. However, when tested for heteroscedasticity using scatter diagrams these variables such are NPM, ROA, ROE and PER free from heteroscedasticity. But variables such as DER, DR, DI, S/TA, EPS and PBV variables tend to contain heteroscedasticity. NPM variable data, tends to increase every year, as well as ROA, ROE. However, DER, DR, DI, S / TA, EPS, PER and PBV variables tend to be stable from year to year.Through a simultaneous equation method that reflects the existence of circular causation, it gives an idea of all variables being independent and dependent. Variable net profit margin on each SOE member JII, influenced significantly by the variable ROE, DER, DR, PER, PBV. The variable return on asset is influenced by ROE and DER variables significantly. The return on equity variable is significantly influenced by NPM, ROA, DER, PER and PBV variables. Debt To Equity Ratio (DER) variables are influenced significantly variables of NPM, ROA, ROE, DER, PER and PBV. Days Receivable (DR) variables influenced by NPM variables significantly.Days Inventory variables are not affected by any variable. Variable of Asset Turn Over (S / TA) is influenced by one variable only that is EPS. Variable Earning per Share (EPS) influenced significantly by variable DER and S / TA. Price Earning Ratio (PER) variables are significantly influenced by NPM, ROE, DER, and PBV. Price to Book Value (PBV) variables are significantly influenced by NPM, ROE, DER and PER variables.

scholarly journals INTELLECTUAL CAPITAL DALAM MENINGKATKAN DAYA SAING: SEBUAH TELAAH LITERATUR

ETIKONOMI ◽  
2015 ◽  
Vol 13 (1) ◽  
Author(s):  
Noorina Hartati
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Cash Flow ◽  
Financial Reporting ◽  
Intellectual Capital ◽  
Firm Value ◽  
Training Programs ◽  
Free Cash Flow ◽  
Accounting Disclosure ◽  
The Impact

Intellectual Capital becomes an interesting topic to discuss and to research because it provides more value for the company thereby increasing competitiveness. Therefore, it should be realized by the owners or top management that the training programs to improve employee competency needs to be improved rather than just buying land for business expansion and new machinery. Based on the research from experts proves that companies that have a more intellectual capital than its competitors the company more profitable, as well as financial performance and firm value better. Viewed from the standpoint of accounting, disclosure of intellectual capital can be seen from the financial reporting of the company through good training programs and human resource spending can increase employee competency, so that the impact effect on Free Cash Flow (FCF) is risingDOI: 10.15408/etk.v13i1.1878

scholarly journals Effect of income diversification on the financial performance of quoted manufacturing firms in Nigeria

2020 ◽  
Vol 3 (1) ◽  
pp. 44-57
Author(s):  
Umar Gunu Suleiman ◽  
Umar Gunu
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Secondary Data ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Corporate Diversification ◽  
Income Diversification ◽  
Ex Post ◽  
Ex Post Facto ◽  
The Impact

Corporate diversification is a center of research in strategic management and finance. Many firms are experiencing a decline in their traditional activities' dues to environmental challenges, including competition, inadequate infrastructural facilities, and economic instability. The study examines the effect of income diversification on the financial performance of quoted manufacturing firms in Nigeria. Specifically, it determines the impact of product income segment diversification and non-product income segment diversification on quoted manufacturing firms' financial performance in Nigerian. The study adopted an ex-post facto research design using secondary data of 42 firms from the 63 quoted manufacturing firms in Nigeria for 11 years (2007-2017) period. Structural equation modeling (SEM) is utilized for data analysis. The study found that both product income segment diversification and non-product income segment diversification significantly affect the financial performance (ROA and ROCE variables) of quoted manufacturing firms in Nigeria. The study concluded that quoted manufacturing firms' financial performance in Nigeria is significantly affected by product income segment diversification and non-product income diversification. The study recommended that manufacturing firms should strategically diversified to increase their income generation in both the product segment and non-product segment to improve their financial performance.

scholarly journals Corporate Social Responsibility and Firms’ Financial Performance: A Study of Nigerian Consumer Goods Companies

2021 ◽  
Vol 35 (1) ◽  
pp. 229-248
Author(s):  
Jarikre Victor Emamoke ◽  
Cordelia Onyinyechi Omodero
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Consumer Goods ◽  
Design Data ◽  
Financial Reports ◽  
Earnings Per Share ◽  
Ex Post ◽  
Corporate Social ◽  
The Impact

Abstract The study is based on corporate social responsibility and financial performance of companies in Nigeria. The study focuses on the issues and ideologies that surround the practices of corporate social responsibility by consumer goods companies in Nigeria. The main objective of the study is to explore the impact of corporate social responsibility on profit after tax, earnings per share and net asset per share of listed consumer goods companies in Nigeria. The study adopts ex-post facto research design. Data were collected from financial reports of five listed consumer goods companies in Nigeria for a period of 5 years from 2015 to 2019. The financial reports and the hypotheses were statistically analysed using the panel data regression analysis. The results revealed a positive but insignificant effect of corporate social responsibility on profit after tax, earnings per share and net asset per share. According to the findings of the study, corporate social responsibility requires more attention and commitment from corporations because it ensures benefits other than profits which in the end boost financial performance.

Influence of human resource capital information disclosure on investors’ share investment intentions

2017 ◽  
Vol 46 (3) ◽  
pp. 551-571 ◽  
Author(s):  
Sugumar Mariappanadar ◽  
Alma Kairouz
Keyword(s):  
Performance Management ◽  
Human Resource ◽  
Information Disclosure ◽  
Banking Sector ◽  
Strategic Human Resource Management ◽  
Annual Reports ◽  
Individual Investors ◽  
Content Type ◽  
Investment Intentions ◽  
The Impact

Purpose The purpose of this paper is to apply the strategic human resource management (HRM) perspective to investigate the schematic relationship between the dimensions of human resource (HR) capital information and intentions to use such information in individual investors’ decisions relating to investing equities in the banking industry. Design/methodology/approach A two-stage empirical study was conducted in 2010 using a four-part HR capital disclosure questionnaire, which was developed and validated in stage 1 (n=145) of the study. In stage 2 (n=157), current or previous shareholders in one of the Australian banking sector corporations participated in the study. The collected data were analyzed using confirmatory factor and logistic regression analyses. Findings The findings of this explorative study highlight that the individual investors’ perception on the importance of performance management dimension of HR capital information has varied impacts on their intentions to use such information in investment decisions to buy, hold on to, or sell stocks. Practical implications This study has made an important contribution to the strategic HRM and behavioral finance literature that the human capital information facilitates the propensity to avoid regrets in selling shares too early (dispositional effect bias) to achieve utility benefits in future which is different from the findings of financial information disclosure study. Originality/value A recent critical review of HR disclosure indicated that most of the published articles on HR capital have used company annual reports for data source. However, this is the first study that attempts to understand the impact of HR capital disclosure information on investment intentions from individual investors’ schema rather than drawing data from company annual reports.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.

scholarly journals Impact of Financial Ratios on Stock Price: Evidence from Indian Listed Banks on NSE

2021 ◽  
Vol 11 (4) ◽  
pp. 5132-5144
Author(s):  
Nitish Rane ◽  
Pooja Gupta
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Study Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Annual Reports ◽  
Earnings Per Share ◽  
Net Interest Margin ◽  
The Impact

This study aims to examine the impact of financial ratios on the stock prices of companies listed on NIFTY Bank. Nifty Bank is a sub-index of NIFTY 50 and has various listed banks included based on the criteria given by NSE. This study data has been taken from the period 2010-2019 and taken from the company annual reports. The analysis is done using panel data regression and other tests to verify the best model for the dataset. The results obtained from this study show that the capital adequacy ratio and the dividend payout ratio do not impact the stock price. In contrast, earnings per share, net NPA ratio, and basic earnings per share, net profit margin, and net interest margin exhibited a relationship with the stock price. In the Indian context, there is less research available on this topic, and the idea chosen for the study is original. Along with this, the data collected for the study and the code used for analysis is original work. New investors can use the results of this study in the Indian stock market to analyze a stock and take proper investment decisions. Another practical usage of this study is that banking sector companies can improve their ratios to attract new investors.

scholarly journals THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE CASE STUDY: MANUFACTURING ENTERPRISES IN KOSOVO

2020 ◽  
Vol 21 (1) ◽  
pp. 222-229
Author(s):  
Arta Jashari ◽  
Enver Kutllovci
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Organizational Performance ◽  
Human Resource ◽  
Management Practices ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Hrm Practices ◽  
Human Resource Management Practices ◽  
The Impact

The purpose of this study is to examine the impact of human resource management practices on organizational performance. In this study a total of 100 managers of manufacturing firms in Kosovo from public and private sectors have responded to the survey. The survey questionnaire had contained 39 items covering selected HRM practices and organizational performance. Our empirical results show that managers of manufacturing firms in Kosovo recognize the importance of employees in their organization and apply practices to manage them effectively. The outcome of correlation analysis provides evidence that HRM practices positively and significantly influence organizational performance. Recruitment and selection practices show the strongest positive association with organizational performance (rho = 0.905) compared to other practices. Regarding to our findings we suggest that with a good recruiting and selection, the organization will fill with a group of potentially qualified candidates. Also, companies should continuously train and develop and involve their employees as they are viewed as the most important resources source of competitive advantage.

scholarly journals AAOIFI governance standards: Sharia disclosure and financial performance for Islamic banks

2019 ◽  
Vol 8 (1) ◽  
pp. 19-37 ◽  
Author(s):  
Hesham Albarrak ◽  
Sherif El-Halaby
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Islamic Law ◽  
Supervisory Board ◽  
Positive Influence ◽  
Economic Consequences ◽  
Annual Reports ◽  
Primary Study ◽  
Islamic Banks ◽  
The Impact

The uniqueness of Islamic banks (IBs) is shown through compliance with Islamic law (Sharia) which is approved through Sharia Supervisory Board (SSB) and presented for stakeholders by Sharia Supervisory Board Report (SSBR). This study seeks to achieve three main objectives as follows: (1) it identifies the degree of IBs’ transparency in compliance with Sharia and their commitment with the governance standards that issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); (2) it aims to measure the impact of adoption AAOIFI on the degree of Sharia disclosure; and (3) it seeks to test the economic consequences of Sharia disclosure based on its impact on financial performance. We analyse content of annual reports and websites of 120 IBs across 20 different countries for year 2016. Regression analysis shows compliance level for Sharia disclosure based on our index for SSBR is 53% with higher level compliance for IBs that apply AAOIFI standards comparing with banks that adopting International Financial Reporting Standards (IFRS). Therefore, adopting AAOIFI has a positive effect on enhancing the degree of Sharia disclosure. Moreover, Sharia compliance has a positive influence on financial performance based on both Returns on Assets (ROA) and Tobin’s Q as a robustness test. This study adds value to Islamic accounting literature by being a primary study. There is a lack of research on the topic and this paper measures the consequences of Sharia disclosure over the financial performance of IBs as well as the role of Islamic standards (AAOIFI) in enhancing the image of Islamic banks through supporting their compliance with Sharia.

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