Customer Concentration, Managerial Ability, and Corporate Performance

We examined whether and how managerial ability affects the relationship between customer concentration and corporate performance. Based on a novel measure of managerial ability, we found that customer concentration has a significant negative effect on corporate performance, while managerial ability can mitigate this effect. The negative effect of customer concentration is only significant in the subsample of low ability and lower efficiency in asset utilization, while the moderating effect of managerial ability is significant for all levels of asset utilization efficiency and more significant for firms with a lower gross margin. The results are robust to numerous robustness tests and endogeneity concerns. Additional analysis of mechanisms shows that in addition to superior operating ability, competent managers select major customers who are more beneficial to their company and decrease the sensitivity of their research and development (R&D) investment to customers. These findings indicate that the heterogeneity of managerial ability plays an important role in the supplier–customer context when the supplier firm generally faces one or more concentrated customers.

Pengaruh ROA, Pertumbuhan Penjualan, Likuiditas dan Ukuran Perusahaan terhadap Struktur Modal Perusahaan Manufaktur Sektor Makanan dan Minuman di BEI

Food and beverage companies are industries that compete in the world market and make major contribution to the value of national exports. Companies that have good capital structure have a good reputation and affect the high stock price. This research aimed to find out the effect of ROA, sales growth, liquidity, company size variable to capital structure variable in annual report listed on the Indonesia Stock Exchange year 2017–2019. The population are all food and beverage manufacturing companies listed on the Indonesia Stock Exchange, and obtained samples of amount 14 companies. The type of this research is a quantitative study. The data analysis used several analyzes, namely multiple linear analysis, the coefficient of determination test, the classical assumption test, R2 test, the F test, and the t test. Based on the results of this research, that partially profitability has significant positive effect on capital structure. Sales growth has no significant negative effect on capital structure. Liquidity has no significant negative effect on capital structure. Company size variable has significant positive effect on capital structure. The results of F test show that profitability, sales growth, liquidity, company size have significant positive effect on capital structure.

Profitabilitas menjadi pemediasi untuk variabel yang mempengaruhi struktur modal (Studi pada Bank Umum Syariah di Indonesia periode 2016-2020)

The purpose of this study is to find out and analyze whether there is an Influence of Liquidity, Growth Opportunity, Asset Structure, and Non Debt Tax Shield on Capital Structure with Profitability as an Intervening Variable in Islamic Commercial Banks Registered at OJK 2016-2020 ". This research is a quantitative research using data sources derived from secondary data, namely the annual report. The sampling technique used in this research is purposive sampling technique. Of the 14 Islamic commercial banks registered with the OJK, only 11 are in accordance with the sample criteria in this study. This study uses the Eviews 9 application as a tool for data processing. The analytical methods used in this research are stationarity test, panel data regression model test, classical assumption test, regression test, and path analysis test. The results obtained in this study are liquidity has a significant negative effect on capital structure. Growth opportunity and asset structure have a significant positive effect on capital structure. Meanwhile, the non-debt tax shield and profitability variables have no significant positive effect on capital structure. Liquidity has no significant negative effect on profitability, growth opportunity has no significant positive effect on profitability. Asset structure has a significant positive effect on profitability, while non-debt tax shield has a significant negative effect on capital structure. From the results of the path analysis conducted in this study, profitability was not able to mediate the variables of liquidity, growth opportunity, and non-debt tax shield on capital structure, but for the asset structure variable profitability was able to mediate the influence of asset structure on capital structure.

Stock Market Volatility during COVID-19 Pandemic

The study investigates the response of the stock market to the coronavirus pandemic. The economic consequences of the coronavirus (COVID-19) for the stock market are considerable for a developing country, like Pakistan, which was amongst the list of fifteen countries with the highest number of coronavirus cases in May 2020. The present study is aimed at finding the effect of an increase in the number of confirmed cases of coronavirus on the stock returns in the Pakistan stock market. Additionally, the study investigates the effect of an increase in the number of deaths on stock returns. The results show that an increase in the number of confirmed cases has a significant negative effect on the stock returns. While the increase in the number of deaths does not have a significant effect on the stock returns. The results are in line with the results of Ashraf (2020). The findings are important for the policymakers in formulating policies to safeguard the investors in the stock market during this uncertain time.

Competitive Strategy of Firms’ Participation in the Global Value Chains and Labor Income Share

The division of labor in the global value chain (GVC) has reshaped the competitive advantage of enterprises participating in the international market and has a significant influence on the distribution of their factor income. Based on the perspective of market choice, this paper uses China’s industrial enterprises’ data, Customs Statistical Data on Import and Export, Word Input and Output Database (WIOD), and BACI database from 2000 to 2007 to analyze the effect of competitive strategy of a firm’s GVC participation on its labor income share. Herein, the competition strategy is depicted by the quality and price of export goods. The empirical results show the following. (1) Quality competition has a larger effect on labor income share than price competition. High-quality and high-price or high-quality and low-price strategies tend to have a significant negative effect on labor income share, while low-quality and low-price and low-quality and high-price strategies have a positive effect. (2) The higher the target market GVC status, the lower the labor income share of exporting firms, and the target market GVC status amplifies that the high-quality and high-price strategies on firms’ labor income share the negative effect of high-quality and low-price strategies on exporters’ labor income share. (3) High-quality and low-price strategies have a significant negative effect on exporters’ labor income share when competing with developing countries in developed country markets or with developed countries in developing country markets. However, the positive effect of low-quality and low-price strategies and low-quality and high-price strategies kept unchanged. The findings remain robust after controlling for endogeneity and accounting for the effects of firm heterogeneity, indicator measurement, and sample variation.

The Effect of Credit Risk and Liquidity Risk on Bank Stability

The purpose of this study is to determine the effect of credit risk and liquidity risk on bank stability. This study used the multiple regression analysis to determine the effect of credit risk and liquidity risk as the independent variables, with BOPO (Biaya Operasional Pendapatan Operasional), GDP (Gross Domestic Bruto), BI Rate as the control variables, on Bank Stability as the dependent variable. Using purposive sampling method to collected data from the list of banking companies in OJK (Otoritas Jasa Keuangan) from 2013 to 2017 consisting of 437 observations. The estimated results show that credit risk has a significant negative effect on bank stability, and liquidity risk has a significant negative effect on bank stability. Whereas in the control variable, GDP does not affect bank stability, BOPO has a significant negative effect on bank stability, and the BI-Rate does not affect bank stability. Keywords: Credit Risk, Liquidity Risk, Bank Stability.

RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

Effect of Tax Audit and Tax Collection on Tax Revenue

This study aims to determine how the implementation of tax audits and tax collection in increasing tax revenue which is expected to be able to contribute to national development. The population used is registered taxpayers at KPP Pratama Cibeunying in 2015-2019 and the samples in this study are taxpayers issued SKP and taxpayers issued STP. The results of this study indicate that the partial tax audit has a negative and significant effect on tax revenue and tax collection has a significant negative effect. Meanwhile, simultaneously tax audit and tax collection have a negative and significant impact on tax revenue.

Analisis Pengaruh Islamicity Performance Index Terhadap Tingkat Profitabilitas Pada Bank Syariah Indonesia

This study aims to determine the level of profitability at BUMN Sharia Banks consisting of Bank Mandiri Syariah, BNI Syariah and BRI Syariah which were merged into Bank Syariah Indonesia (BSI) and the factors that influence it. The three state-owned Islamic banks have a level of profitability that does not meet healthy standards in the fairly healthy category. The independent variables used in this study include Profit Sharing Ratio (PSR), Zakat Performance Ratio (ZPR), Equitable Distribution Ratio (EDR) and Islamic Income vs. Non-Islamic Income while the dependent variable is the level of profitability. The research method used is descriptive quantitative using Multiple Linear Regression analysis. The results of this study indicate that Profit Sharing Ratio (PSR) has a significant negative effect on the level of profitability of Islamic State-owned banks, Zakat Performance Ratio (ZPR) has a significant positive effect on the level of profitability of BUMN Sharia Banks, Equitable Distribution Ratio (EDR) has a significant negative effect on the level of profitability at BUMN Sharia Banks and Islamic Income vs. Non Islamic Income has no significant effect on the level of profitability of BUMN Sharia Banks. The implication of this research is to find out the extent to which at BUMN Sharia Banks can optimize financial performance with the factors that influence it, especially the ratio with Islamic principles. The still low standard of Islamicity Performance Index in each ratio is one of the causes of lessthan optimal profit growth at BUMN Sharia Banks.