scholarly journals Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya

2020 ◽  
Vol 12 (11) ◽  
pp. 118
Author(s):  
Kahihu Peter Karugu ◽  
Wachira D. Muturi ◽  
Stephen M. A. Muathe
Keyword(s):  
Financial Performance ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Market Risk ◽  
Microfinance Institutions ◽  
Financial Reports ◽  
Normality Test ◽  
Microfinance Institution ◽  
Using Data ◽  
The Relationship

The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.

scholarly journals Pengaruh intellectual capital terhadap financial performance dengan corporate reputation sebagai variabel moderasi

2020 ◽  
Vol 2 (3) ◽  
pp. 96
Author(s):  
Putri Purnama Sari ◽  
Rosyeni Rasyid
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Return On Assets ◽  
Financial Reports ◽  
Company Reputation ◽  
Regression Test ◽  
The Relationship

This study aims to analyze whether there is an effect of intellectual capital on financial performance as moderated by the company's reputation. The financial performance is seen from the financial ratios, namely the ratio of profitability (return on assets).  This type of research is classified into comparative research. The population in this study were 45 banks listed on the Indonesian stock exchange in 2014-2018. Sampling in this study using purposive sampling method in order to obtain a sample of 36 banks with a total sample of 180 samples. The type of data used is secondary data obtained from the official website of the Indonesian stock exchange www.idx.id  and published financial reports on the websites of each bank sample. Based on the results of the regression test with a significant level of 0.1; The results obtained indicate (1) there is a significant effect of intellectual capital on financial performance. (2) company reputation moderates the relationship between intellectual capital and financial performance. Keywords: Intellectual capital, financial performance, company reputation

scholarly journals Competition and microfinance institutions’ performance: evidence from India

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Hailu Abebe Wondirad
Keyword(s):  
Empirical Analysis ◽  
Significant Relationship ◽  
Competitive Market ◽  
Microfinance Institutions ◽  
Self Sufficiency ◽  
Using Data ◽  
The Relationship ◽  
The Empirical Analysis

Abstract This paper empirically examines whether competition (measured by using the new measure of competition, the Boone Indicator) moderates the relationship between Microfinance Institutions’ (MFIs) social and financial performances using data from 183 Indian MFIs over the period 2005–2014. The findings indicate that MFIs’ social and financial performances have a positive significant relationship. Moreover, the form of the relationship is both lead-lag and cotemporal. The Indian microfinance market was very competitive over the period 2005–2014. The empirical findings show that competition positively moderates the relationship between MFIs’ social and financial performances. More precisely, the empirical analysis provides evidence that the association between MFIs’ depth of outreach and operational self-sufficiency is conditional upon competition. These results suggest that in a competitive market, the more MFI deepen their depth of outreach, the higher contribution it has to their operational self-sufficiency.

Research on the Impact of Information Security Certification and Concealment onFinancial Performance

2022 ◽  
Vol 30 (3) ◽  
pp. 0-0
Keyword(s):  
Information Security ◽  
Financial Performance ◽  
Positive Impact ◽  
Rapid Development ◽  
International Standards ◽  
Corporate Decisions ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Iso 27001

With the rapid development of information technology, information security has been gaining attention. The International Organization for Standardization (ISO) has issued international standards and technical reports related to information security, which are gradually being adopted by enterprises. This study analyzes the relationship between information security certification (ISO 27001) and corporate financial performance using data from Chinese publicly listed companies. The study focusses on the impact of corporate decisions such as whether to obtain certification, how long to hold certification, and whether to publicize information regarding certification. The results show that there is a positive correlation between ISO 27001 and financial performance. Moreover, the positive impact of ISO 27001 on financial performance gradually increases with time. In addition, choosing not to publicize ISO 27001 certification can negatively affect enterprise performance.

scholarly journals The Lagged Effect of Advertising Expenditures on the Financial Measures of Brand Equity in the Egyptian Context

2021 ◽  
Vol 04 (09) ◽  
Author(s):  
Nermin M. Gohar
Keyword(s):  
Brand Equity ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Reports ◽  
Financial Measures ◽  
The Impact ◽  
Corporate Brands ◽  
The Relationship ◽  
Egyptian Stock Exchange

This research intends to fill the gap in the literature by studying the impact of lagged real advertising expenditures on different perspectives of brand equity in the Egyptian context, which are: Firm-based and Market-based brand equity. The research follows the quantitative research-based approach, with the descriptive explanatory method. Secondary data was collected from firms’ financial reports of sixteen sectors for the period 2013 - 2020 to consider the effect of real advertising expenditures on firm-based and market-based brand equity models. Data was collected from 168 listed companies in the Egyptian stock exchange market, after deleting the financial institutions. The unit of analysis was the corporate brands and data collected was panel data analyzed using Eviews program – version 10, using GLS regression. Results showed that market risk significantly moderates the relationship between advertising expenditures and Firm-based and Market-based brand equity.

scholarly journals THE MODERATING EFFECT OF INDEPENDENT COMMISIONERS ON FINANCIAL POLICY AND PUBLIC OWNERSHIP TOWARD CORPORATE FINANCIAL PERFORMANCE

2020 ◽  
Vol 2 (2) ◽  
pp. 139
Author(s):  
Niko Silitonga
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Measurement Instrument ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Financial Policy ◽  
Public Ownership ◽  
The Relationship

<p align="center"><strong>Abstract</strong></p><p><em>The corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property &amp; Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange.</em> <em>The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy.</em></p><strong>Keywords:</strong> <em>Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance</em>.

scholarly journals Dynamics of Risk Factors Affecting the Capital Adequacy Ratio with Special Reference to UCO Bank

2019 ◽  
Vol 8 (2) ◽  
pp. 10-13
Author(s):  
Preeta Sinha ◽  
Protik Basu
Keyword(s):  
Market Risk ◽  
Capital Adequacy ◽  
Basel Iii ◽  
Bank Capital ◽  
Financial Reports ◽  
Factors Affecting ◽  
Operational Risks ◽  
Capital Adequacy Ratio ◽  
Using Data ◽  
Asset Quality

To reinforce the stability of the financial system, policy makers and the Basel committee have proposed Basel accord to ensure that financial institutions maintain sufficient capital buffers. Basel III framework emphasizes on sustained increase in bank capital in order to absorb the potential credit, market and operational risks. The capital adequacy requirement under Basel III norms are directly linked to the PCA (Prompt Corrective action) framework which has disrupted the flow of credit in the economy. Market risk, Credit risk, Operational risk and deposits are some of the factors affecting the capital adequacy ratio (CAR) which influences the bank performances. This study aims at analysing the most important factor responsible for the shrinking liquidity due to adherence of stringent capital adequacy ratio imposed by RBI. Currently 11 public sector Banks out of 21 PSUs under PCA has sequentially shrunk their loan book including UCO Bank. The bank’s asset quality has worsened over the years. Using regression analysis, this paper seeks to study the major determinants of Capital Adequacy ratio using data sets for the period from 2009 to 2018 of UCO bank. The data was collected from the financial reports of the UCO bank for the aforesaid period. Among the parameters considered, it was found that deposits affect the CAR the most and market risk has the lowest impact on CAR.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

scholarly journals Social and financial performance of MFIs: complementary or compromise?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Navin ◽  
Pankaj Sinha
Keyword(s):  
Financial Performance ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Current Time ◽  
Content Type ◽  
Dynamic Framework ◽  
The Social ◽  
Loan Size ◽  
The Relationship ◽  
Practical Implications

Purpose With the ongoing transformation of the microfinance sector, questions have been raised on the ability of microfinance institutions (MFIs) to perform financially well without compromising with their social objectives. The current study attempts to analyse the social and financial performance of Indian MFIs with an objective to find the kind of relationship between these two objectives. Design/methodology/approach The dynamic framework of simultaneous equations model is used to find the nature of the relationship which exists between social and financial performance of Indian MFIs. Findings The study finds that depth of outreach enables MFIs to achieve financial sustainability. On the other hand, financially strong MFI lend more as reflected by an increase in their average loan size. Research limitations/implications Many MFIs still receive subsidies to support their operations. Ideally, adjustments should be made to remove the effect of such subsidies on their cost. However, due to non-availability of data, the study fails to make any adjustment for the subsidies. Practical implications The presence of a complementary relationship between social and financial performance in the Indian microfinance sector is quite encouraging for the policymakers during the current time when the sector is becoming less dependent on subsidies. However, the recent upsurge in the average loan size requires attention. Social implications The findings suggest that MFIs can achieve financial sustainability while targeting poor clients. This indicates that MFIs can perform socially good along with their financial performance. Originality/value Such study is vital when the Indian microfinance sector is moving away from subsidies to become self-reliant and commercialised. Few studies have focused on this aspect of Indian microfinance sector.

THE MODERATING EFFECTS OF ADAPTIVE AND INTELLECTUAL RESOURCE CAPABILITIES ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND FINANCIAL PERFORMANCE

2018 ◽  
Vol 22 (03) ◽  
pp. 1850026 ◽  
Author(s):  
SAMUEL ADOMAKO
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Primary Data ◽  
Moderating Effects ◽  
Resource Based View ◽  
Intellectual Resource ◽  
The Relationship

Extant entrepreneurial orientation (EO) literature suggests that EO positively affects firm performance, but several factors influence the potency of this relationship. However, the influence of adaptive and intellectual resource capabilities on the EO–performance linkage lacks theoretical clarity. Accordingly, deriving insights from the resource-based view and dynamic capabilities framework, this paper argues that variations in financial performance are a function of degree of EO and levels of adaptive and intellectual resource capabilities. Using primary data gathered from 245 small and medium-sized enterprises (SMEs) operating in Ghana, the study finds that when a firm’s adaptive and intellectual resource capabilities are well developed and deployed, the potency of EO as a driver of financial performance is enhanced.

scholarly journals PERSEPSI MASYARAKAT AKAN PENTINGNYA KEBERADAAN LEMBAGA KEUANGAN MIKRO DI DESA PEMECUTAN KELOD

2021 ◽  
pp. 59
Author(s):  
Ni Luh Karmini ◽  
I Ketut Sutrisna
Keyword(s):  
Data Analysis ◽  
Qualitative Analysis ◽  
Microfinance Institutions ◽  
Object Condition ◽  
Is Research ◽  
Microfinance Institution ◽  
The Relationship ◽  
Descriptive Qualitative

The objectives of this study are 1) Knowing the community's perception of the existence of a microfinance institution (LKM) in Pemecutan Kelod Village, 2) Describing the factors that hinder the existence of a microfinance institution (LKM) in Pemecutan Kelod Village. The data analysis used in this research is descriptive qualitative analysis, which is research that aims to accurately describe the properties of an object, condition, symptom or group to determine the frequency of the relationship or influence between a symptom and other symptoms in society. Its purpose is to create a systematic picture. Based on the results of the study, it can be concluded that the community states the importance of the existence of microfinance institutions to improve the community's economy and requires experienced, properly educated and honest managers. The suggestion conveyed in this research is that it is necessary to initiate the establishment of a microfinance institution in the banjar in Pemecutan Kelod Village and to recruit experienced, educated and honest managers so that they are trusted by the community.

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