Revenue and operational, financial performance of the leading Indian automobile companies of India: A relational mutual analysis

The operational and financial performance of the business organization is to be measured by its revenue, profit-earning capacity, and financial soundness to pay its debts. The profit of a business organization depends on the level of activities or revenue while the earning capacity defines and accelerates the absolute profit. Also, the financial soundness facilitates the resources and working capital to run the business activities to earn the profit. The operational efficiency enhances the profit margin while financial soundness increases the absolute profit by lifting the production level. The financial resources, operational efficiency, and revenue govern the profit of a business organization. The Indian automobile industry is the most prominent and contributing sector in the Indian economy. The study considers the relationship of revenue and profitability, financial resources to determine the relationship and mutual governance of revenue and profitability and revenue and financial resources. Financial ratios and statistical tools i.e. gross profitability and mean, coefficient of variation, rank correlation, and fixed base index applied to analyze the data of leading Indian automobile companies for the period 2011 to 2020. The study finds that the profitability and growth of the smaller leading Indian automobile companies are better than the higher revenue companies. Total resources or capital employed governs the revenue of the Indian automobile companies. The study recommends the study of cost composition of products of lower revenue leading Indian automobile companies.

Benefits of Compliance and Risk Management

Compliance is a program that aims to protect organizations from the occurrence of financial fraud, corruption, behavior and/or misconduct of employees linked to them, preventing their good reputation and financial soundness from being shaken. It is a tool whose purpose is to establish rules, standards and guidelines for internal processes within organizations. It was developed in the United States in 1970, and its practices were transformed into a legal institute, through the enactment of the Pioneer Law against Corruption FCPA (Foreign Corrupt Practices Act), motivated by the Watergate Case, which involved then-President Richard Nixon and members of his administration, by paying bribes in surveys in favor of his re-election. In this context, this article has as its main question: how do the benefits offered by the Compliance and Risk Management program collaborate to reduce the risks of fraud, illicit and corruption within organizations? The aim of this study was to present the benefits provided by the adoption of the Compliance and Risk Management program in public and private companies, in their internal processes and relationships with their segment of activity, and how they collaborate for fraud mitigation. The methodology was adopted as a bibliographic research, and it was about the benefits caused by fraud prevention programs. It was found that Compliance and risk management programs bring effective risk protection benefits, mitigating fraud and corruption, combined with new Information Technology Governance (IT) solutions, such as Enterprise Governance, Risk Management and Compliance (EGRC).

MENILAI KESEHATAN KEUANGAN MITRA DALAM ANALISIS KELAYAKAN PEMBERIAN MODAL MENGGUNAKAN METODE Z-SCORE

ABSTRAKTujuan penelitian ini adalah menilai kesehatan keuangan mitra menggunakan metode Z-Score untuk memprediksi kesehatan keuangan mitra atau calon debitur. Subjek penelitian ini di tiga mitra atau nasabah dari PT Mitra Bisnis Keluarga Ventura dari sektor manufaktur dan perdagangan. Penelitian ini adalah penelitian kualitatif deskriptif. Metode analisis data menggunakan model Altman Z-Score dengan menganalisis laporan keuangan nasabah PT Mitra Bisnis Keluarga Ventura dari tiga periode atau lebih. Berdasarkan hasil penelitian yang dilakukan, Data Mitra A dikategorikan sehat dengan Z-Score 3,80, Data Mitra B dikatakan tidak sehat dengan nilai 0,52 dan Data Mitra C dikatakan Grey Area karena memiliki angka di bawah 2,60, yaitu 2,33. Hasil penelitian ini mengimplikasikan bahwa Keterkaitan antara Metode Z-Score dengan hasil keputusan tingkat kesehatan keuangan cukup membantu dalam menganalisis laporan keuangan dan dapat menghasilkan keputusan yang tepat dalam menilai kesehatan keuangan mitra. ABSTRACTThe purpose of this study is to assess the financial health of partners using the Z-Score method to predict the financial health of partners or prospective debtors. The subjects of this study were three partners of PT Mitra Bisnis Keluarga Ventura from the manufacturing and trading sectors. This research is a descriptive qualitative research. The data analysis method uses the Altman Z-Score model by analyzing the financial statements of PT Mitra Bisnis Keluarga Ventura customers from three or more periods. Based on the results of the research conducted, Partner A's data is categorized as healthy with a Z-Score of 3.80, Mitra B's data is said to be unhealthy with a value of 0.52 and Partner C's data is said to be gray area because it has a number below 2.60, which is 2.33. The results of this study imply that the relationship between the Z-Score method and the results of financial soundness decisions is quite helpful in analyzing financial statements and can produce the right decisions in assessing the financial health of partners.

Impact of Covid-19 on Digital Marketing

The worldwide pandemic of Covid-19 while affecting different areas, significantly affected Digital Showcasing and Advertising also, in worldwide, provincial and nearby level. Be that as it may, this effect for most part was a positive one, as opposed to what was being seen in different fields like economy, human asset, and so on, While the infection made parcel of vulnerabilities among clients and advertisers the same, regarding wellbeing, public activity, financial soundness, business, and so on, similar likewise prompted social moves like working distantly, spending part of time inside, taking on to self-teaching, taking in new plans from the web, expanded consideration on wellbeing and hygene, staying away from swarmed regions, expanded web-based media commitment, shift towards online substance, and so on, and these colossally affected showcasing and publicizing endeavors. The social shift was transcendently towards advanced stages and computerized content, which made valid openings for the advertisers and brands to interface with the clients carefully like never before previously. With expanded webbased media commitment and needing for computerized content, advanced medias furnished the advertisers with parcel of freedoms to cash on. Simultaneously, this likewise caused the advertisers to act carefully to and be socially dependable while carrying out computerized advertising techniques. This paper is made with an endeavor to feature, break down and comprehend the effect of Coronavirus pandemic on computerized showcasing and publicizing all in all.

Moderating effect of bank size on the relationship between financial soundness and financial performance

PurposeThis study analyzed the moderating effect of bank size on the relationship between financial soundness and financial performance of commercial banks in Kenya.Design/methodology/approachThe study employed data from 39 commercial banks for ten years from 2009 to 2018. Panel data regression model was used to analyze data.FindingsThe study results established a negative moderating effect of bank size on the relationship between commercial banks' financial soundness and net interest margin (NIM) and return on assets (ROA) with the results indicating a correlation coefficient of −0.1699 and −0.218, respectively. However, an absence of moderating effect was established when return on equity (ROE) was used as a measure of financial performance.Practical implicationsThe paper finding recommends that banks' management and other policy makers should consider the effect of bank size while devising financial soundness policies to ensure optimal level of banks' financial soundness aimed at improving banks' financial performance. In addition, bankers associations should come up with policies to standardize asset quality management practices to ensure continuous positive performance of the banking sector.Originality/valueThe study shows the contribution and applicability of the theory of production in the banking sector.

Nonlinear effect of female board directorship on bank financial soundness

To verify if female directors on the bank’s board play a role in managing bank stability, this paper applies a multi-threshold model to quarterly data from 26 Taiwanese commercial banks over the 2002–2018 period to find the factors that influence bank financial stability and to examine how female board directorship affects it. The empirical results suggest that women on the board do play a guarding role in a bank’s financial soundness when banks reach a high debt ratio regime. The influence of female directors on the capital adequacy ratio is positive for banks with a debt ratio higher than 92.69%, and for non-performing loans it is positive within the regime of the debt ratio 90.71% ≤ τ < 95.39%.In particular, it has been found that the value of total assets is a factor that positively affects a bank’s financial soundness, which supports the “too big to fail” theory for banks with high total assets and debt ratios. Revenue has the opposite effect on financial soundness when it negatively affects the capital adequacy ratio and positively affects non-performing loans. A larger board size reduces banks’ financial soundness, which is contrary to the higher proportion of women on the board of directors, which generally contributes to the financial stability of the bank.

Firm Restructuring System in Korea: A Comparison of Firm Performance Between Policy Finance Institutes and Private Banks

The performance of firm restructuring led by policy finance institutes in Korea was analysed using quantitative methods. Firm performance in terms of the probability of graduating from the restructuring process, profitability and financial soundness for restructuring firms managed by policy finance institutes was compared against those managed by private banks. Data analysis using the propensity score matching (PSM) and Heckman models found the following characteristics in the firm restructuring led by policy finance institutes in Korea. First, the probability of graduating from restructuring was statistically significantly lower in the firms managed by policy finance institutes. Second, the strength of restructuring in terms of material and human resources since the start of restructuring was statistically significantly stronger in firms managed by policy finance institutes. However, whether the policy finance institutes were the main creditors since the start of the restructuring process significantly reduced the firms’ sales. Nevertheless, it did not affect their profitability in a statistically significant manner. Considering that relatively more financial resources are injected into the restructuring firms managed by policy finance institutes, it can be concluded that the firm restructuring led by policy finance institutes is less efficient.