The Effect of Inventory Turnover, Cash Turnover, and Receivable Turnover on Profitability at Telecommunication Companies during the Covid-19 Pandemic

This study aimed at analyzing three different turnovers of current asset elements: the inventory turnover, the cash turnover, and the receivable turnover on profitability. Data is taken in the form of financial statements from the public companies of the telecommunication sector during four quarters of 2020. The panel data is processed from 9 companies or 36 observations using the Eview9 application and produced the fixed effect model as the best regression. The results indicate that the cash turnover has a significantly positive effect on profitability, whereas the inventory turnover and the receivable turnover have not significantly any effect on profitability. Therefore, the study concluded that the cash turnover was the one of current assets turnover that effected on the profitability of the public company telecommunication sector in Indonesia. It implied to the public companies of telecommunication sectors to choose the appropriate turnover model to achieve the maximum profitability during the Covid-19 pandemic.

Factors affecting asset investment of public companies in plastic and packaging industry in Vietnam

The purpose of this research is to identify and analyze the influence of internal factors on asset investment of public companies in the plastic and packaging industry in Vietnam. The research has built a regression model to determine the relationship of internal factors affecting asset investment of public companies in the plastic and packaging industry in Vietnam. The strength of this research is to use the E-view software in quantitative analysis to build a panel data regression model. At the same time, the researchers used the Hausman test to select the appropriate model compared to other research. The data of the research are collected and calculated from the financial statements of 27 companies in the plastic and packaging industry in Vietnam from 2013 to 2020. The research results show that such factors as sale, equity, and debt ratio have a positive impact on asset investment, the return on assets has a negative impact on asset investment, while the average loan interest rate does not affect the asset investment of enterprises. Therefore, the author has made recommendations to help public companies in the plastic and packaging industry in Vietnam to improve the efficiency of asset investment. The results of this research are very useful for corporate financial managers in helping them make appropriate financial decisions for their companies.

Efek Moderasi Pelaporan Berkerlanjutan dalam Pengaruh Praktik Penghindaran Pajak Terhadap Nilai Perusahaan

Researches on tax avoidance practices and firm value are still inconclusive. Therefore, this study examined whether sustainability reporting moderates the effects of tax avoidance on firm value. Tax avoidance is measured by pull effective tax rates (PETR) and cash effective tax rate (CETR). PETR is a measurement of the value of income that is taxed, while CETR is a measurement of taxes that are actually paid. The study used secondary data taken from companies listed on the Indonesia Stock Exchange from 2016 to 2020. Hypotheses testing using panel regression method. Based on the examination of 1,374 observations, it was found that only 12.7% of the sample prepared sustainability report. It shows that sustainability reporting is still not mandatory for many public companies in Indonesia. According to the hypotheses test, tax avoidance (PETR or CETR) does not affect firm value. Sustainability reporting has a negative moderating effect but not significantly. On the other hand, firm value is significantly influenced by several control variables, including size, profitability, leverage, and age of the firm. These findings complement the literature on the role of sustainability reporting publications in determining firm value in relation to tax avoidance practices. Furthermore, this study is expected to increase the motivation of Indonesian listed companies to produce sustainability reports.

A Management Decision Process for Corporate Action

Corporate Action namely every action of the issuer that gives equal rights to all shareholders such as Dividends, Right Issues and Stock Splits. Dividend is the distribution of company profits to shareholders based on the percentage of ownership of capital owners. Management decisions in seeking new capital or funds through the stock exchange floor are usually for debt repayment actions, company goals, expansion through product innovation in improving and maintaining company stability for better prospects in the future so as to encourage the government to build a better economy in the next period. Corporate action applies to all companies, not limited to public companies. Several forms of corporate action that are generally carried out by issuers include the distribution of dividends, both cash and shares,

Increasing shareholder focus: the repercussions of the 2015 corporate governance reform in Japan

The corporate governance reform promulgated in 2015 in Japan has contributed to a substantial increase of board independence and a reduction of average board tenure. Our empirical analysis covering 3405 public companies demonstrates that reinvigorated corporate oversight and an increasing post-reform shift towards prioritization of shareholder value have led to a persistent increase of corporate profitability, asset productivity, dividend payouts, acquisitions’ value, and valuation multiples. We also document a significant increase of sensitivity of executives’ and directors’ compensations to the dynamics of firms’ bottom lines. The positive changes are the most pronounced within companies where independent directors constitute a majority on the board. The most notable drawbacks of the reform are a significant reduction in net employment creation and in employee turnover within the largest companies. These might be a possible reason for the documented improvement in corporate performance. The number of part-time employees has also seen a significant increase. While being prima facie focused on reinvigorating the private sector, the corporate governance reform may implicitly undermine the established social contract based on job security. Therefore, our study is important from the perspective of sustainable development of the corporate sector as it demonstrates that while concentrating on improving corporate governance, it is also necessary to consider the business’ social responsibility.

ESG impact on financial corporate performance and portfolio returns: evidence of Australia and Japan

Environmental, Social, and Governance investing has undergone a radical shift; companies and investors have focused on the impact of the disclosure of the practices and policies related to the environment, social responsibility, and governance in their operational strategies and investment. The purpose of this paper is to demonstrate the impact that the ESG policies have on public companies' stock returns in Australia and Japan. Accounting and market-based measures are used to determine the impact ESG practices have on stock market index returns. The annual data used is of companies from Australia's S&P/ASX Index and Japan's Nikkei 225 Index, covering the period from 2005 to 2019. Fixed effect model regression was used to test the significant relationship between companies' stock returns and ESG score, accounting, and market-based measures. Portfolios were created to analyze the risk/return relationship between companies with and without ESG across countries. The findings indicate mixed results. Australia´s non-ESG portfolios outperform the S&P500 and ESG portfolios. Japan´s portfolio has positive returns but underperforms the benchmark. Low market capitalization portfolios with and without ESG outperform the higher capitalization portfolios.

Political connections and firm performance in an emerging market context: the mediating effect of sustainability disclosure

PurposeThis study examines the mediating effect of sustainability disclosure on the relationship between political connections and firm performance from the resource-based view.Design/methodology/approachThe sample of this study was sourced from 888 public companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2017. Path analysis and Sobel tests were used to determine the mediating effect of sustainability disclosure.FindingsThe results show that political connections have a positive and significant influence on firm performance. Furthermore, sustainability disclosures mediate the relationship between political connections and firm performance.Research limitations/implicationsIn the context of developing countries such as Indonesia, managers can make the existence of parties in politically connected companies as a medium to demonstrate their adherence to external stakeholders through the disclosure of sustainability information.Originality/valueThis study is the first to investigate the mediating effect of sustainability disclosure on the relationship between political connections and firm performance, especially in emerging markets. The parties of the politically connected companies use a social responsibility mechanism as a medium that can sustain their operational sustainability whilst gaining long-term economic benefits.

THE PUBLIC COMPANIES LAW AND SUBSTANTIVE IMAGES OF PERSONS OF PUBLIC LAW IN MODERN RUSSIAN LEGISLATION

The article outlines the general problems arising in the system of the Russian legislation associated with the contradiction between the legal forms set forth in the Civil Code and the forms of legal entities that were actually formed in public law. As a specific example, it was impossible to inscribe those entities which had special legal status (Central Bank of the Russian Federation, the Pension Fund of Russia, Vnesheconombank of the USSR, Bank for Foreign Trade of the RSFSR) in the proposed by Civil Code classification. The emergence of the legal form of a public corporation is seen in the article as an attempt to remove the existing contradictions in legislation.