Management obfuscation through mandatory financial risk disclosure: evidence from European-listed banks

Purpose This study aims to investigate the readability of financial risk disclosure divulged by listed banks of the first five European countries according to gross domestic product. Design/methodology/approach This study adopts the management obfuscation hypotheses and tests data gathered for a sample of 790 observations from listed banks in Europe covering the 2007–2018 period. This study uses a readability index (Gunning’s fog index) as the dependent variable for measuring the readability of banks’ mandatory financial risk disclosures. Moreover, it relies on a completeness index, discretionary accruals and several control variables for identifying the determinants of risk disclosure readability using ordinary least square regression for testing the hypotheses. Findings The findings show the existence of a positive relation\nship between readability and completeness of risk disclosure. In contrast, a negative relationship exists between readability and banks’ discretionary accruals. Originality/value This study expands the stream of accounting literature analyzing the lexical characteristics of narrative risk disclosure, and, by focusing on the financial risk disclosure of banks, it extends the readability-related debate, which has primarily concentrated on other types of disclosure to date. This study is relevant to regulators and policymakers for fostering reflections as actions for improving the financial risk disclosures readability. This study is also of potential interest for investors to better delve into the questions surrounding risk disclosure.

Assessing the Effects of Market Power on Electricity Reliability in China: Toward a Green and Reliable Market

The transition to a low-carbon power system is among the measures to forge green energy transition and carbon neutrality, where grid firms have a crucial role. In this context, this paper uses the provincial data from 2004 to 2017 to evaluate the impact of market power of grid companies on service quality in China. Panel dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) models are employed. The findings indicate that higher market power has indeed reduced reliability measured by average outage duration. Renewable energy integration also has negative effects and reduces electricity reliability. Finally, the effects are also heterogeneous across the different regions. The results may also provide useful lessons for other developing countries aiming to improve the electricity supply chain.

Effect of Solvency and Liquidity on The Profitability of Property Companies Listed on The Sharia Stock Index 2018-2020

<p><em>This study analyzes the effect of Solvency and Liquidity on the profitability of property companies listed on the Indonesian Islamic stock index for the 2018-2020 period. This research is quantitative research with secondary data from financial reports from 2018 to 2021. Regression model analysis using Common Effect Model (CE) or Ordinary Least Square (OLS) method. The findings show that DAR has a negative effect on ROA, which explains that debt will burden the company and reduce the profit level of Islamic property companies. On the other hand, DAR has no effect on ROE because debt does not affect the value of equity owned by the company itself. DER has no effect on ROA and ROE, this is certainly contrary to the Pecking Order Theory. Current Ratio has a negative effect on ROA, this is not in accordance with </em><em>Pecking Order Theory</em><em>. Cash ratio has a positive effect on ROA and also on ROE, and is in accordance with </em><em>Pecking Order Theory</em><em>. The cash ratio as the company's ability to pay short term has a positive influence, because the company is not limited to being responsible for the environment around the company but also socially responsible to the community.</em></p><p> </p><p>Penelitian ini menganalisis pengaruh Solvabilitas dan Likuiditas terhadap profitabilitas perusahaan properti yang terdaftar di indeks saham syariah Indonesia periode 2018-2020. Penelitian ini menggunakan pendekatan kuantitatif dengan data sekunder dari laporan keuangan tahun 2018 sampai dengan tahun 2021. Analisis model regresi menggunakan metode Common Effect Model (CE) atau Ordinary Least Square (OLS). Hasil analisis menunjukkan bahwa DAR berpengaruh negatif terhadap ROA, yang menjelaskan bahwa utang akan membebani perusahaan dan mengurangi tingkat keuntungan perusahaan properti syariah. Di sisi lain, DAR tidak berpengaruh terhadap ROE karena hutang tidak mempengaruhi nilai ekuitas yang dimiliki oleh perusahaan itu sendiri. DER tidak berpengaruh terhadap ROA dan ROE, hal ini tentunya bertentangan dengan Pecking Order Theory. Besarnya ekuitas utang secara khusus tidak berdampak pada tingkat keuntungan perusahaan properti. Current Ratio berpengaruh negatif terhadap ROA, hal ini tidak sesuai dengan Stakeholder Theory. Kondisi ini menyebabkan Current Ratio berpengaruh negatif terhadap ROE. Cash ratio berpengaruh positif terhadap ROA, dimana Cash Ratio berpengaruh positif terhadap ROE, dan sesuai dengan Stakeholder Theory. Rasio kas sebagai kemampuan perusahaan untuk membayar jangka pendek memiliki pengaruh positif, karena perusahaan tidak sebatas bertanggung jawab terhadap lingkungan sekitar perusahaan tetapi juga bertanggung jawab secara sosial kepada masyarakat.</p><p><em> </em><em></em></p><br /><p class="MsoNormal" style="text-align: justify; border: none; mso-padding-alt: 31.0pt 31.0pt 31.0pt 31.0pt; mso-border-shadow: yes;"><input id="ext" type="hidden" value="1" /><input id="ext" type="hidden" value="1" /></p>

The Impact of Financing Risk on Islamic Banking Performance in Indonesia

The financing risk is a significant issue in the Islamic banking industry that affects its performance. This research aims to examine the factors that influence financing risk on the financial performance of Islamic banking in Indonesia. This study utilized time-series data quarterly from 2009-2020 collected from three types of Islamic banking in Indonesia: Islamic Commercial Bank (ICB), Islamic Business Unit (IBU), and Islamic Rural Bank (IRB). It was analyzed using multiple regression estimation techniques with the Ordinary Least Square (OLS) method. This study revealed that the Islamic banks’ financing risk is significantly influenced by bank capital, financing, economic growth, inflation, and central bank’ rate (BI rates), both negatively and positively. In detail, the increase of bank capital, financing, and economic growth will reduce the financing risks, whilst inflation and BI rate increase the financing risks. The findings also disclosed that Islamic banks' financial performance is influenced by bank capital, operating costs, financing risks, inflation, and BI rates. Thus, the decrease in bank capital, operational costs, and financing risks will subsequently decrease the financial performance, while the increase of inflation and BI rates will increase the financial performance of Islamic banks. Economic growth is the most influential factor in reducing financing risk, while financing risk is the most significant factor in improving banks’ financial performance. The government's efforts to boost economic growth are crucial to reducing financing risks and improving the financial performance of Islamic banks.==========================================================================================================ABSTRAK – Dampak Risiko Pembiayaan terhadap Kinerja Bank Syariah di Indonesia. Risiko pembiayaan merupakan persoalan utama bagi industri perbankan termasuk perbankan syariah. Tujuan dari penelitian ini adalah untuk menganalisis faktor-faktor yang mempengaruhi risiko pembiayaan dan pengaruhnya terhadap kinerja keuangan perbankan syariah di Indonesia. Objek penelitian meliputi Bank Umum Syariah, Unit Usaha Syariah dan Bank Perkreditan Rakyat syariah. Model analisis menggunakan teknik estimasi regresi berganda dengan menggunakan metode Ordinary Least Square (OLS). Penelitian ini menggunakan data time-series periode kuartalan dari 2009-2020. Hasil penelitian ini menunjukkan bahwa risiko pembiayaan bank syariah dipengaruhi oleh modal bank, pembiayaan, pertumbuhan ekonomi, inflasi dan BI Rate. Hasil ini mengindikasikan bahwa peningkatan modal bank, pembiayaan, dan pertumbuhan ekonomi akan mengakibatkan penurunan risiko pembiayaan, sementara peningkatan inflasi dan BI Rate akan meningkatkan risiko pembiayaan. Selain itu, hasil kajian juga mendapati bahwa kinerja keuangan bank syariah dipengaruhi oleh modal bank, biaya operasional bank, risiko pembiayaan, inflasi dan BI Rate. Secara detil, penurunan modal bank, biaya operasional dan risiko pembiayaan akan meningkatkan kinerja keuangan bank syariah, sementara peningkatan inflasi dan BI Rate akan meningkatkan kinerja keuangan. Faktor yang berpengaruh paling terhadap penurunan risiko pembiayaan adalah pertumbuhan ekonomi. Penurunan risiko pembiayaan merupakan faktor yang berpengaruh paling besar terhadap peningkatan kinerja keuangan perbankan syariah. Upaya pemerintah untuk mendorong pertumbuhan ekonomi merupakan langkah yang sangat strategis mengurangi risiko pembiayaan dan meningkatkan kinerja keuangan perbankan syariah di Indonesia.

INDIKATOR KOLEKTIBILITAS KREDIT JOINT FINANCING MENGGUNAKAN OLS & LOGIT

This study aims to determine indicators that have a significant effect on debtor collectability. The number of sample data used is 102 joint financing debtors whose loans were realized in 2019, which consists of two groups of 51 debtors that have current and non-current collectability. The analytical method used is the ordinary least square method and the logit regression method, where the combination of the two analytical methods being used at once was not yet found in previous studies. The analysis result using ordinary least squares shows three (3) significant indicators that affect collectability, namely term of the loan, value of collateral and monthly liabilities, with a significance level of 0.05. Meanwhile, the binary logit analysis results in four (4) significant indicators, namely term of the loan, value of collateral and monthly liabilities with a significance level of 0.05 and level of job risk with a significance level of 0.10. The R-squared value in the ordinary least square is 41%, which means that the ten indicators in this study simultaneously affect the collectability variable, while 59% is influenced by other variables not included in this study. The analysis using the logit regression method shows an R-square value of 39% which can be said that the ten indicators altogether affect debtor collectability by 39%.

Perbandingan Analisis Logika Fuzzy dan Regresi Linier Berganda dalam Menentukan Produksi Beras Nasional

Jumlah produksi padi nasional merupakan suatu ketidakpastian. Logika Fuzzy adalah ilmu yang dapat menganalisa ketidakpastian. Logika Fuzzy yang digunakan adalah metode Mamdani, terdapat 4 langkah yakni : pembentukan himpunan Fuzzy, aplikasi fungsi Implikasi, komposisi aturan dan defuzzifikasi. Proses analisis data dibantu juga dengan software Matlab. Teknik analisis data pada statistik yang sering digunakan untuk mengkaji hubungan antara beberapa variabel dan meramal disebut Analisis Regresi Berganda. Analisis Regresi Berganda memakai metode Kuadrat Terkecil atau Ordinary Least Square (OLS). Kedua metode ini dipakai untuk mencari bentuk hubungan antara dua variabel atau lebih yang terdiri dari variabel terikat dan variabel bebas. Tujuan dari penelitian ini adalah membandingkan hasil prediksi jumlah produksi padi yang tepat dan akurat dari kedua metode tersebut. Dengan cara menghitung nilai rata-rata kesalahan relatif dari peramalan menggunakan Logika Fuzzy dan Analisis Regresi Berganda.

SOCIO-ECONOMIC AND PSYCHOLOGICAL CORRELATES OF FASHION CONSCIOUSNESS OF CONSUMERS

Fashion conscious people allocate a large part of their budget on a latest fashion. The present study assessed the socio-economic and psychological factors that play significant role in fashion consciousness. A convenient sample of 200 individuals (men=100 and women=100) of age between 22 and 44 years from Multan, Pakistan was taken to study the correlates of fashion consciousness. The estimates of ordinary least square showed that education, monthly income, materialism, and media exposure had significant positive impact, and price consciousness had significant negative impact on fashion consciousness of the sample, which partially support consumption theories (e.g., Absolute Income Hypothesis’ and ‘Relative Income Hypothesis). The study has implications for both consumers and producers. Key Words: Fashion consciousness, materialism, price consciousness, absolute income hypothesis, relative income hypothesis

The Role of Foreign Direct Investment Inflows in Economic Growth in Malaysia

The purpose of this study is to investigate the relationship between the inflows of Foreign Direct Investment (FDI) and economic growth in Malaysia. The sample collected for this empirical study covered 30 years of data from 1991 to 2020. The secondary data was collected annually and a total of 30 observations were taken for each variable. Ordinary Least Square (OLS) regression, unit root test, several diagnostic tests and Granger causality test were used in this research to investigate the relationship between FDI inflows and economic growth. Eviews 11 was used to analyze the time series data throughout all the tests. The result showed that the inflows of FDI has a significant negative relationship with economic growth and there is no causal relationship between FDI and Gross Domestic Product (GDP). Keywords: Economic growth, FDI inflows, Granger Causality Test, Ordinary Least Square regression, Unit Root Test

Manufacturing Export Performance: A Trend Analysis Approach

The study examined the export performance using a trend analysis approach. A graphical demonstration showing the trend of export performance in Nigeria over time was displayed. It also identifies the major determinants of manufacture exports in Nigeria using ordinary least square approach which shows that an increase in the average tariff rate would lead to a decline in the manufacturing exports and its statistically significant at the 5% level of significance. Capacity utilization has a negative and insignificant with manufactured exports. Also, there is a positive and significant relationship between exchange rate and trade openness at 1 and 5% level of significance respectively.

Environmental Smog Control Costs and proceeds of Oil and Gas Conglomerates

The study was carried out to analyse cost implications of environmental smog control costs on the proceeds of oil and gas conglomerates. Panel data were collected and organized from financial statements of selected conglomerates. Data were analysed using ordinary least square of multivariate analysis. Empirical findings revealed that environmental smog control costs have significant effect on the proceeds of the conglomerates investigated. Thus the study suggested and acclaimed that conglomerates should ensure that smog management and controls policies are formulated and implemented to avoid projecting a bad image of the establishment which could lead to loss of goodwill and reduce proceeds in the long run, there should also be effective regulations that will lead to adequate cost disclosure and appropriate financial performance reporting.