Academic literature on the topic 'Return on capital employed (ROCE)'
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Journal articles on the topic "Return on capital employed (ROCE)"
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Ghosh, Sohini, and Sraboni Dutta. "M&A Deals and Corporate Governance Framework." International Journal of Asian Business and Information Management 9, no. 2 (April 2018): 29–39. http://dx.doi.org/10.4018/ijabim.2018040103.
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The escalating importance of mergers and acquisitions (M&A) has coincided with concerns about corporate governance issues. This article investigates how corporate governance mechanisms along with firm-specific control variables impact performance during M&A deals occurring between 2000-2012 in acquiring Indian telecom companies. In this research, firm performance has been measured via accounting based, market based and qualitative performance dimensions, represented by Return on Capital Employed (ROCE), Tobin's Q and Human Capital Return on Investment (HCROI) respectively. Panel data regression techniques was employed for the analysis. The learning from this study reveals that board size and firm size have significant positive relationships with ROCE and HCROI. Chairperson-CEO duality also has positive significant association with ROCE. Shareholding percentage of institutional investors was found to have a significant negative relationship with HCROI. Board independence, firm size and market share significantly affect Tobin's Q.
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Savigny, Yeremia Von, Hari Sukarno, and Novi Puspitasari. "Analisis Komparasi Profitabilitas Pertanian Padi Organik dan Anorganik di Desa Lombok Kulon Kabupaten Bondowoso." Jurnal Ekonomi Akuntansi dan Manajemen 18, no. 2 (September 27, 2019): 96. http://dx.doi.org/10.19184/jeam.v18i2.14657.
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Profitability is a very important element for a business or company. Profitability ratios are usually used to see how the effectiveness and efficiency of a business in the use of venture capital. The factors that affect the level of profitability in this study are the cost of production, production, sales and profits. This research discusses how to compare the profitability of organic and inorganic rice farming. The analysis was conducted on 13 samples of organic rice farmers and 30 samples of inorganic farmers domiciled in Lombok Kulon Village, Bondowoso Regency. This study uses two types of profitability, namely Net Profit Margin (NPM) and Return On Capital Employed (ROCE). The test uses the Independent sample t-test and the Mann Whitney Test, depending on the results of the normality test data. The test results show that there are differences in the level of profitability of organic rice farming and inorganic rice farming. The test results with the statistical difference test also showed that there were significant differences in the comparison of the profitability levels in the two agricultural systems. Thus it can be concluded that there are significant differences in the level of profitability of Net Profit Margin (NPM) and Return On Capital Employed (ROCE) in organic and inorganic rice farming systems.
Keywords: Profitability Ratio, NPM, ROCE, Organic Rice and AnOrganic Rice.
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Ibrahim Sadiq, Abdulrashid, Pofi Wendy Kachollom, Saminu Inuwa Dasuki, and Mohammad Yusuf. "Effect of Capital Structure on the Performance of Deposit Money Banks." International Journal of Accounting & Finance Review 1, no. 1 (August 31, 2017): 12–23. http://dx.doi.org/10.46281/ijafr.v1i1.14.
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The objective of this study is to examine the effect of capital structure onthe financial performance of Deposit Money Banks in Nigeria. Secondary data was obtained from the financial statements of Deposit Money Banks listed in the Nigerian Stock Exchange.Four banks were selected as samples and data from their financial statements for a period of 10 years (2006-2015). The study has employed the use of Pearson correlation coefficient and GLS regression model to analyze the effect of capital structure on the performance of some selected. The performance variables used in the study were, Return on Asset (ROA), Return on Equity (ROE) and Return on Capital Employed (ROCE). Findings from the study showed that capital structure has an effect on the financial performance of listed deposit money banks in Nigeria.Based on the results, the study recommends thatdeposit money banks in Nigeria should employ an appropriate mix of debt and equity capital and strike a balance between their choice of capital structure and its effect on their performance, as this will affect the shareholders risk returns and the cost of capital. Furthermore, the banks should increase their assets as this will help them to be more positioned for better performance and the government should improve liquidity in the Nigerian Financial Market to enable deposit money banks raise long term debt and reduce over dependency on short term debt.
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Nosheen Rasool, Safi Ullah, Muhammad Mubashir Hussain, and Muhammad Usman. "Role of Value Added and Conventional Accounting Measures in Stimulating Stock Market Returns: A Study of Non-Financial Sector Listed at Pakistan Stock Exchange." Journal of Accounting and Finance in Emerging Economies 7, no. 1 (January 26, 2021): 217–32. http://dx.doi.org/10.26710/jafee.v7i1.1599.
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The purpose of this study is to examine the comparative relationship of value-added and conventional financial performance indicators with stock returns of listed companies of Pakistan Stock Exchange. Stock Return (SR) is used as an outcome variable, whereas, for measuring explanatory variables, Traditional Financial Performance indicators includes return on assets (ROA), return on equity (ROE), Return on Capital Employed (ROCE) and Earnings Per Share (EPS) whereas modern performance indicators is measured through economic value added (EVA), economic value added movement (EVAM), economic value added spread (EVAS). The sample consists of 107 companies and having 856 observations of non-financial sector listed on Pakistan Stock Exchange (PSX) for the time period 2011 to 2018. Findings reveal that stock returns are more influenced by the value that is created by listed companies for their shareholders than the accounting profits. The study aims at providing useful information for the management, investors, researchers, and regulators.
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Widyarini, Dyah Putri, and Muhammad Arsyadi Ridha. "Rasio Keuangan dan Return Saham Syariah." Al-Tijary 4, no. 2 (August 8, 2019): 139–54. http://dx.doi.org/10.21093/at.v4i2.1390.
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This study investigates the effect of financial ratios on stock returns at companies listed in Indeks Saham Syariah Indonesia (ISSI) period 2012-2016. This study uses quantitative methods with secondary data collected from the company's financial statements. The population in this study were all companies listed on the Syariah Indonesia Stock Index (ISSI) during the period of 2012-2016 as many as 149 companies. Based on the sampling technique with purposive sampling method obtained a sample of 59 companies with data collected during the period 2012-2016 as many as 295 financial report data. In this study panel panel regression was used to see the effect of the independent variables consisting of ROCE, TATO, TIER, PER and CFR on the dependent variable namely Stock Return. Processing data in this study using Eviews 9. Software. Data analysis techniques in this study using statistical techniques with the help of Eviews 9 program. Based on 59 companies observed, fixed effect panel data regression models have been used to examine the relevance to the effect of financial ratios on stock returns. The result of the research, found that the Total Asset Turnover (TATO) and Time Interest Income Ratio (TIER) have a positive effect on stock returns. Total Asset Turnover (TATO) and Time Interest Earned Ratio (TIER) can be considered by investors to make decisions in choosing which companies have high stock returns. Return On Capital Employed (ROCE), Price To Earning Ratio (PER), and Cash Flow Ratio (CFR) are not related to stock returns.
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Ganda, Fortune, and Collins C. Ngwakwe. "The differential effect of labour unrest on corporate financial performance." Risk Governance and Control: Financial Markets and Institutions 5, no. 3 (2015): 246–54. http://dx.doi.org/10.22495/rgcv5i3c2art10.
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Heightening labour unrest episodes have inevitably generated important results on corporate financial performance. This paper provides first-hand, empirical data to illustrate the effect of labour unrest on firm performance before periods of labour unrest (2004 to 2008) and during periods of labour unrest (2009 to 2013) in South Africa’s mining sector. Content analysis was used to gather financial performance measures (Operating profit, Return on Capital Employed and Debt to Equity Ratios) of two mining firms. Then, t-test (paired samples) were utilised to analyse the data. The findings demonstrates that operating profit during labour unrest was lower when compared to operating profit before labour unrest for both company’s A and B. Return on Capital Employed results for five years before labour unrest was greater than ROCE during the labour unrest for both companies. Then, debt to equity during the labour unrest is greater than before labour unrest for the studied companies.
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Vijayakumar, A. "Linkage between Market Value Added (MVA) and other Financial Variables: An Analysis in Indian Automobile Industry." Management and Labour Studies 33, no. 4 (November 2008): 504–21. http://dx.doi.org/10.1177/0258042x0803300405.
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The present article makes an attempt to find the relevance of Stern and Stewart's claim that MVA of the firm is largely positive associated with or driven by its EVA generating capacity in the Indian context. The study also portrays the temperament of association between MVA and other selected traditional financial variables like Earnings Per Share (EPS), Return on Capital Employed (ROCE), Net Operating Profit After Tax (NOPAT) and Return on Net Worth (RONW). The regression analysis has been carried out, and the succeeding outcomes that have been arrived revealed that NOPAT and RONW are the most significant variable with MVA followed by EVA, ROCE and EPS. In almost all cases, the positive relationship through correlation model has been established between the variables under reference. Thus, revealing the influence of this tool for rummaging the financial potency of Indian corporate comprising an industry and Indian industries comprising the particular sector may be measured as the need of the hour for all such companies that have not starting reporting their financial position in terms of EVA and MVA.
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Anwar, Rosiwarna, and Fenny Chintya Debby. "The Comparative of Corporate Performance Analysis Between Pre and Post Mergers and Acquisitions Companies in the Indonesia Manufacturing Industries Listed on The Stock Exchange in 2007-2012." Jurnal Manajemen dan Bisnis Indonesia 4, no. 1 (October 1, 2016): 97–108. http://dx.doi.org/10.31843/jmbi.v4i1.105.
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This study aims to analyze the performance of companies doing mergers and acquisitions that proxies by Return on Capital Employed (ROCE), Return on Equity (ROE), Operating Profit Margin (OPM), NetProfit Margin (NPM), EPS (Earnings PerShare), PER (Price Earning Ratio). This studyuses the sample based on 90 companies in Indonesia manufacturing industries forthe period from 2007 to 2012.Hypothesis testing is done by using the paired t test. We had documented the results of the study findings ofthe performance of the company which showed the distinction between two conditions, pre mergers and acquisitions when compared with post mergers and acquisitions of companies. However, many out of the results are not statistically significant.
Keywords: Mergers & Acquisitions; Corporate Performance; Financial Ratios.
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Matuszak, Piotr, and Katarzyna Szarzec. "The Scale and Financial Performance of State-Owned Enterprises in the CEE Region." Acta Oeconomica 69, no. 4 (December 2019): 549–70. http://dx.doi.org/10.1556/032.2019.69.4.4.
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The paper aims to analyse state-owned enterprises (SOEs) in 11 post-socialist Central-Eastern European (CEE) countries. Based on the individual data of large non-financial companies, we estimated the real state share in the years 2014 and 2015. We consider both direct and indirect state ownership and apply an explicit classification of companies as majority and minority state-owned, which is neglected in a lot of research. The countries with the highest values of the ‘Country SOE index’ were Slovenia and Latvia, while the lowest were Lithuania and Hungary. State ownership is dominant in transportation and storage and energy supply. The lower return on assets (ROA), return on equity (ROE) and return on capital employed (ROCE) ratios of SOEs imply that capital in this group of companies is used less efficiently. Furthermore, they are characterised by higher wage costs. At the same time, SOEs have higher earnings before interest, taxes, depreciation and amortization (EBITDA) margins and better ability to turn operating revenue into cash than their privately-owned counterparts.
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Mamilla, Rajesh, and A. Vasumathi. "Is Apollo Tyres Creating or Destroying Shareholders’ Wealth?" South Asian Journal of Business and Management Cases 9, no. 1 (November 6, 2019): 125–37. http://dx.doi.org/10.1177/2277977919881388.
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There has been a growing concern about the performance measures based on traditional accounting information such as return on equity (ROE), return on capital employed (ROCE), return on net worth (RONW), earning per shares (EPS), net operating profit after taxes (NOPAT) and return on investment (ROI). These measures although widely used fail to capture the shareholders’ value creation/destruction as a result of management actions. The concept of economic value added (EVA) and market value added (MVA) have gained popularity all over the world particularly in the USA, the UK and European countries. EVA and MVA are finding acceptance as internal and external performance measures because these two measures are consistent with the organizational objective of shareholders’ value creation. Due to its popularity, a lot of research work has been conducted in the late 1990s covering diverse issues on EVA and MVA. In the light of the above, the present study made an attempt to calculate EVA as well as MVA and to analyze whether Apollo Tyres is creating or destroying shareholders’ wealth during the study period.
Dissertations / Theses on the topic "Return on capital employed (ROCE)"
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Steyn, Johannes Petrus. "Using capital intensity and return on capital employed as filters for security selection." Thesis, Stellenbosch : Stellenbosch University, 2012. http://hdl.handle.net/10019.1/71792.
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Thesis (MComm)--Stellenbosch University, 2012.ENGLISH ABSTRACT: Do firms that have low dependence on physical assets as well as high profitability outperform companies with the opposite characteristics in the market? Despite the lack of empirical research, conventional wisdom would suggest that they should. Conceptually, investors should prefer profitable companies to less profitable companies, and lower capital-intensive to high capital-intensity firms. Using a large sample of global stocks over the period from 1988 to 2010, the effect of using capital intensity and return on capital employed (ROCE) as filters for portfolio inclusion was investigated. A quantitative research approach was followed in this study. This involved dividing the sample into five subsets, or quintiles, according to the specific metric (for example capital intensity). The total return of an equally weighted portfolio was then measured for each quintile for the subsequent 12 months. The portfolio was rebalanced annually and the subsequent 12-month return recorded. Because enhanced performance on new capital investments may take longer than 12 months to be reflected in share prices, quintile performance was also measured over five-year holding periods. The empirical findings of this study reveal that there was no discernible pattern of outperformance by low capital-intensive quintiles using annual rebalancing. However, the lowest capital-intensive firms had the highest average returns using five-year holding periods. The highest ROCE firms performed best with annual rebalancing and with five-year holding periods. Combining both capital intensity and ROCE, a portfolio focused on low capital intensity and high profitability produced a compound annual growth rate that is 9.18 percentage points higher than a portfolio focused on the highest capital intensity and the lowest ROCE. Over five-year holding periods there is a distinct outperformance by low capital-intensive firms with high operational profitability. These results indicate that allocation of investment capital to capital-intensive companies with low operational profitability seems likely to impair long-term returns, and there may be value in a focus on low capital-intensity firms that are able to generate high returns on capital employed.
AFRIKAANSE OPSOMMING: Sal maatskappye met lae afhanklikheid van fisiese bates, asook hoë winsgewendheid, maatskappye met die teenoorgestelde eienskappe uitpresteer in die mark? Ten spyte van ‘n gebrek aan empiriese navorsing, sal konvensionele wysheid voorstel dat dit so moet wees. Beleggers behoort winsgewende maatskappye bo minder winsgewende maatskappye te verkies, en laer kapitaalintensiewe bo hoë kapitaalintensiewe maatskappye. Die gebruik van kapitaalintensiteit en opbrengs op kapitaal aangewend (OOKA) in die beleggingsbesluit word ondersoek deur gebruik te maak van ‘n groot steekproef globale aandele oor die tydperk 1988 tot 2010. 'n Kwantitatiewe navorsingsbenadering was gevolg in die studie. Dit het die verdeling van die steekproef in vyf onderafdelings, of kwintiele, volgens die spesifieke maatstawwe (byvoorbeeld kapitaal-intensiteit) behels. Die totale opbrengs van 'n gelyk-geweegde portefeulje is vervolgens gemeet vir elke kwintiel vir die daaropvolgende 12 maande. Die portefeulje is jaarliks herbalanseer en die daaropvolgende 12 maande se opbrengs is aangeteken. Omdat verbeterde prestasie op nuwe kapitaalbeleggings langer kan neem as 12 maande om in aandeelpryse weerspieël te word, is kwintiel prestasie ook oor vyf jaar hou periodes gemeet. Die bevindinge van hierdie studie dui daarop dat daar geen beduidende verbetering in prestasie onder laer kapitaalitensiewe kwintiele oor een jaar houperiodes was nie. Die laagste kapitaalintensiewe maatskappye het egter oor ‘n hou periode van vyf jaar die hoogste gemiddelde opbrengs gelewer. Die hoogste OOKA maatskappye het die beste gevaar met jaarlikse herbalansering en met 'n houperiode van vyf jaar. 'n Portefeulje gefokus op lae kapitaalintensiteit en hoë winsgewendheid het 'n saamgestelde jaarlikse groeikoers gelewer wat 9,18 persentasiepunte hoër was as 'n portefeulje gefokus op die hoogste kapitaalintensiteit en die laagste OOKA. Oor houperiodes van vyf jaar was daar duidelike uitprestering deur lae kapitaalintensiewe ondernemings met hoë operasionele winsgewendheid. Hierdie resultate dui daarop dat die toekenning van beleggingskapitaal aan kapitaalintensiewe maatskappye met lae operasionele winsgewendheid waarskynlik langtermynopbrengste benadeel en dat 'n fokus op lae kapitaalintensiteit maatskappye, wat in staat is om 'n hoë opbrengs op kapitaal te genereer, moontlik meer lonend kan wees.
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Luhr, Carl, and Alice Ålund. "The Financial Impact of having Women on the Board : A study on the gender composition of a board and its effect on a company's financial performance." Thesis, Linköpings universitet, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-177479.
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The purpose of the study is to examine if the gender composition of a board has an effect on a company’s financial performance by analyzing their operating margin and return on capital employed (ROCE). The study is based on a quantitative method, studying companies listed on the Stockholm Stock Exchange. Previous research has not been studying the gender composition of boards of Swedish companies and its effect on the company's financial performance in regard to their operating margin and return on capital employed. Therefore, this study has examined that in order to draw a conclusion regarding its possible effects. The data that is collected will be used as support in the analysis in order to understand how the current composition and effects are connected. This study will contribute with knowledge for companies in Sweden regarding gender composition of boards and the possible effects on their financial performance. But also, as support for the ongoing discussion regarding board composition and the current inequality in gender representation. In conclusion the study shows that return on capital employed and the proportion of women in the board has a positive relationship. Meaning that the bigger proportion of women in a board, the better return on capital employed the company has. However, for operating margin there was not a significant relationship and therefore a conclusion regarding that cannot be made.
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Graham, Martin. "Measuring a firm's economic profitability : a study of the measurement of a firm's economic profitability with proposals for, and evaluations of, an ex post measure, return on total capital employed (ROTCE), and an ex ante measure, a modified version of Tobin's q (modq) employing current earnings in lieu of capital employed." Thesis, Loughborough University, 1994. https://dspace.lboro.ac.uk/2134/7268.
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Despite its significance for industrial economics, utility regulation and competition policy, the measurement of the economic profitability of a firm remains a relatively underresearched area. The difference between the Accounting Rate of Return (ARR), measured on a net replacement cost or current cost basis, and a firm's estimated risk adjusted cost of capital is favoured by many economic researchers and is widely employed in utility regulation, but strong claims have been made for Tobin's q (q - the ratio of the market value of a firm's securities to the cost of replicating the firm, often identified with the net replacement cost of its net assets). Both measures have shortcomings. Davis and Kay have drawn attention to, but have failed to fully explain, a bias in ARR when firms buy in goods and services. Bias in q due to the omission of hidden capital can be significant. In this paper, economic profitability is identified with a firm's input-output ratio expressed in present value terms, and with the internal rate of return on a firm's expenditure in the accounting year, both revenue and capital. In the case of ex Post profitability, the last two measures are shown to be equivalent. Departures from the form of these ideal measures explains the biases in both ARR and q. Employing the Capital Asset Pricing Model, two alternative, operational measures of a firm's economic profitability are derived from the ideal measures with a view to eliminating the biases in q and ARR. The ex post measure is called here the Return on Total Capital Employed (ROTCE) and the ex ante measure is called here modified Tobin's q (modq). ROTCE is appraised using data from a simple corporate model. modq is appraised using data extracted from the accounts of companies comprising the Buildings Materials and Food Manufacturing sectors of the FTA All Share Index. In this study, I/modq and 1/q are shown to be significantly correlated at the 95t confidence level, and some 45k of the difference between them can be associated with taxation effects. Associating market power with the product of Beta and the Return on Sales, 1/modq is found to be significantly related at the 95t confidence level with market power and wages deflated by market value.
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Yonkers, Michael A., and Marek Flis. "Return on capital employed at Naval Dental Center Gulf Coast." Thesis, Monterey, California. Naval Postgraduate School, 2003. http://hdl.handle.net/10945/9838.
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Approved for public release, distribution is unlimitedMBA Professional Report
Approved for public release, distribution is unlimited
The purpose of this MBA Project is to provide a Return on Capital Employed model for Naval Dental Center Gulf Coast (NDCGC) resource managers. The model will enable the resource managers to evaluate financial and personnel assets appropriate for each dental clinic and to allocate assets as deemed necessary based on those results. NDCGC is required to report the Return on Investment (ROI) of each branch dental clinic (BDC) to the Bureau of Medicine and Surgery on a quarterly basis. NDCGC has made an effort to calculate return on assets, but there has been little understanding of the source of the income, cost and assets valuation data used in the equation. NDCGC has recognized over the past fiscal year that using the measure of Return on Capital Employed (ROCE) vice ROI will give them the assessment of alternatives to optimize the use of resources. NDCGC has requested that a model be developed to analyze ROCE at each BDC. A breakdown and analysis of the ROCE equation will enable NDCGC to provide all BDCs with proper recommendations based on the outcomes of the study on ROCE's effectiveness. This project was conducted with the sponsorship and assistance of Naval Dental Center Gulf Coast.
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Yonkers, Michael A. Flis Marek. "Return on capital employed at Naval Dental Center Gulf Coast /." Monterey, Calif. : Springfield, Va. : Naval Postgraduate School ; Available from National Technical Information Service, 2003. http://library.nps.navy.mil/uhtbin/hyperion-image/03Dec%5FYonkers%5FMBA.pdf.
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Thesis (M.B.A.)--Naval Postgraduate School, December 2003."MBA professional report"--Cover. Thesis advisor(s): Joseph G. San Miguel, Don E. Summers. Includes bibliographical references (p. 35). Also available online.
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Malmqvist, Daniel, and Madeleine Nilsson. "The signalling value of provisions : A study of the relation between provisions and firm performance." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-202552.
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To be able to understand future firm performance it is important to recognize and correctly evaluate what constitutes a signal. This study investigates if provisions contain signalling value regarding future firm performance. The study is conducted on firms listed on the Nasdaq OMX Stockholm from 2001 to 2010, constituting a sample of 2173 firm years. All the provision data has been manually collected from each of the firm’s annual reports. By using both univariate and multivariate analyses, the study provides new evidence regarding the association between provisions and firm performance. The findings indicate that firms who recognise restructuring provisions experience a performance improvement. The performance improvement is tied to the size of the restructuring provision i.e. the signal. Warranty and litigation provisions show no indications of having any relation to future firm performance. Thus, large restructuring provisions contain a signal of performance improvement, whereas warranty and litigation provisions do not. The thesis contributes to existing literature by providing new insight of how provisions functions as signals of firm performance
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Kwaasi, Adjei Emmanuel, and Kelvin Ubabuko. "The Consequences of Post-Merger & Acquisition Performance in Listed and Non-Listed Companies in Sweden : a Case Study for AstraZeneca AB, Cybercom Group AB, Grant Thornton Sweden AB and PayEx." Thesis, Högskolan på Gotland, Institutionen för humaniora och samhällsvetenskap, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:hgo:diva-1107.
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Empirical research findings on the consequences of post-M&A performance have generated several result, although most of which are inconsistent. The relation of such post-M&A performances to non-listed and listed companies can be relative especially when considering the companies economic and financial structure and other prevailing factors associated to the host country. However, most of these have been attributed to the choice of performance measurement indicators. This paper analyses and evaluates existing performance indicators that have been employed in the literature. It is argued that to overcome the limitations found in financial indicators of performance, a need to pursue multiple measures of performance in post-M&A research is needed. It also argues that the motives for the transaction should also be included as performance indicators. This hybrid approach will allow researchers and practitioners to measure the overall success of merger and acquisitions.
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Lasisi, Toyin Ishola. "The Relationship between Corporate Governance and Organizational Performance in Nigerian Companies." ScholarWorks, 2017. https://scholarworks.waldenu.edu/dissertations/3399.
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The growing lack of confidence in public companies arises from the recent accounting scandals and corporate collapses, which have been attributed to the consequences of separation of ownership and control in modern firms. Agency theory predicts a conflict of interest between managers and shareholders that leads to agency costs and weak performance. This study used agency, stakeholders', and stewardship theories as the theoretical framework and multiple regression analysis to examine the relationship between corporate governance mechanisms and organizational performance in nonfinancial firms listed on the Nigerian Stock Exchange. The results of the study could help clarify understanding of corporate governance to managers, investors, and regulators who seek to understand how corporate governance impact firms' performance. In this study, corporate governance mechanisms included board independence, audit committee independence, board size, number of board meetings, and executive compensation. The data were collected from the firms' published accounts on their websites and on the archives of the Nigerian Stock Exchange for a period starting from January 1, 2011 to December 31, 2015. The measures of financial performance in the study were return on assets, return on capital employed, and Tobin's Q. The study found a positive but not statistically significant relationship between corporate governance mechanisms and financial performance. This study has implications for positive social change by showing managers and other stakeholders of firms how a good corporate governance system assures investor confidence, employee loyalty and commitment, the reduction in conflict of interest and agency costs, and a strong financial performance.
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Maelum, Albin, and Linus Wallinder. "Sambandet mellan hållbarhetsarbete och lönsamhet : En studie om sambandet mellan noterade företags hållbarhetsarbete och lönsamhet." Thesis, Högskolan i Gävle, Företagsekonomi, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-23638.
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Syfte: Syftet med studien är att undersöka om det finns något sammanband mellan hållbarhetsarbete och lönsamheten hos de företag som är noterade på Nasdaq OMX Stockholm. Metod: För att uppnå syftet med studien har en kvantitativ metod använts. En tvärsnittsdesign har varit grunden för de statistiska undersökningarna. Den empiriska data som har samlats in är av sekundär art där hållbarhetsarbetet har operationaliserats med hjälp av Folksam index för året 2013. Måtten på företagens lönsamhet består av nyckeltalen avkastning på eget kapital, avkastning på sysselsatt kapital och vinstmarginal. Dessa mått är inhämtade från företagens årsredovisningar från räkenskapsåret 2015. Vidare har den insamlade data analyserats med hjälp av deskriptiv statistik, Pearsons korrelationstest och linjära regressioner. Resultat & slutsats: Studiens resultat visar hur ett positivt samband finns mellan samtliga nyckeltal som berör den finansiella lönsamheten i företagen och dess redovisade hållbarhetsdata. Avkastningen på eget kapital har ett svagt positivt samband med en signifikansnivå på 0,05. Avkastning på sysselsatt kapital har ett svagt positivt samband där signifikansnivån 0,1 analyserades. Vinstmarginalen har det starkaste sambandet med en förklaringsgrad på 52,1 procent och en signifikansnivå på 0,01. Förslag till fortsatt forskning: Ett förslag till vidare forskning är att göra en studie under en längre period, men även att jämföra hållbarhetsarbete inom Europa. Den nya lagen som träder i kraft under 2017 är även en intressant ståndpunkt. Detta för att se hur det kan påverka sambandet mellan hållbarhetsarbete och lönsamhet. Uppsatsens bidrag: Denna studies praktiska bidrag visar hur sambandet mellan noterade företag hållbarhetsarbete och lönsamhet ser ut. År 2013 var de ungefär 226 företag som redovisade sitt hållbarhetsarbete vilket även utformar studiens population. Det teoretiska bidraget i denna studie är att se vilket samband hållbarhetsarbete och lönsamhet verkligen har och studien berör tre olika mått på företagens finansiella prestation. Samt om det förekom ett positivt, negativt eller neutralt samband mellan den beroende och oberoende variabeln.Aim: The aim of this study is to investigate whether there is a relationship between sustainability performance and profitability of the companies listed on Nasdaq OMX Stockholm. Method: In order to achieve the aim of the study a quantitative method used. A cross-sectional design has been the basis of the analyses. The empirical data that have been collected from the secondary nature in which sustainability work has been operationalized with the help of Folksam Index for the year 2013. The dimensions of financial performance consist the keywords, return on equity, return on capital employed and profit margin. These measurements are obtained from annual reports from the year of 2015. Furthermore, the collected data were analyzed using descriptive statistics, Pearson correlation test and linear regressions. Results & Conclusions: Our results demonstrate how a positive correlation exists between all the key figures relating to the financial profitability of businesses and its reported sustainability data. Return on equity has a weak positive correlation with a significance level of 0.05. After the analyze return on capital employed has a weak positive correlation with significance level of 0.1. The profit margin has the strongest relationship with an explanation rate of 52.1 percent and a significant correlation at a significance level of 0.01. Suggestions for future research: A proposal for further research is to make a study for a longer period, but also to compare the different European countries CSR. The new law that takes effect in 2017 is also an interesting position to see how it affects the relationship between CSR and corporate profitability during a specific timeline. Contribution of the thesis: This study practical contribution shows how the relationship between listed companies' sustainability performance and profitability looks. In 2013 it was approximately 226 companies that reported its sustainability work and these companies are the population in this study. The theoretical contribution of this study was to see what connection work on sustainability and profitability, indeed, and the study involves three different measures of corporate financial performances. If there was a positive, negative or neutral relationship between the dependent and independent variable.
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Veselý, Martin. "Aviation industry in global perspective." Master's thesis, Vysoká škola ekonomická v Praze, 2015. http://www.nusl.cz/ntk/nusl-201997.
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The hypothesis claims that full service carriers (FSCs) will be forced to change their operating models. Additionally, the trends which form aviation market of the future are explored. The investigation is based on a financial assessment of ten important airlines incorporated in four different regions across the globe, between 2005 and 2014. According to the findings the trend of liberalization will continue, thus FSCs will continue losing market share to low cost carriers (LCCs) and as such, they will be made to change the way they operate in order to survive. The future aviation market is defined by a reshuffle of demand towards emerging countries, further rationalization of operating models and consolidation.
Books on the topic "Return on capital employed (ROCE)"
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King, D. R. Improving financial performance at Rolls Royce PLC: An assessment of key factors within one sector of the company affecting return on capital employed. Bradford, 1987.
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Chartered Institute of Management Accountants., ed. Return on capital employed techniques in the NHS. London: Chartered Institute of Management Accountants, 1992.
Find full textBook chapters on the topic "Return on capital employed (ROCE)"
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Whiting, Edwin. "Return on capital employed." In A Guide to Business Performance Measurements, 214–31. London: Palgrave Macmillan UK, 1986. http://dx.doi.org/10.1007/978-1-349-07472-3_18.
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Bode, Daniela, and Helene Wiens. "Die Return-on-Capital-Employed-Konzeption im Krankenhaus." In Werteorientierte Konzeptionen im Krankenhaus, 23–45. Wiesbaden: Springer Fachmedien Wiesbaden, 2015. http://dx.doi.org/10.1007/978-3-658-07838-6_2.
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Ghosh, Sohini, and Sraboni Dutta. "M&A Deals and Corporate Governance Framework." In Foreign Direct Investments, 1581–92. IGI Global, 2020. http://dx.doi.org/10.4018/978-1-7998-2448-0.ch070.
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The escalating importance of mergers and acquisitions (M&A) has coincided with concerns about corporate governance issues. This article investigates how corporate governance mechanisms along with firm-specific control variables impact performance during M&A deals occurring between 2000-2012 in acquiring Indian telecom companies. In this research, firm performance has been measured via accounting based, market based and qualitative performance dimensions, represented by Return on Capital Employed (ROCE), Tobin's Q and Human Capital Return on Investment (HCROI) respectively. Panel data regression techniques was employed for the analysis. The learning from this study reveals that board size and firm size have significant positive relationships with ROCE and HCROI. Chairperson-CEO duality also has positive significant association with ROCE. Shareholding percentage of institutional investors was found to have a significant negative relationship with HCROI. Board independence, firm size and market share significantly affect Tobin's Q.
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"Return on Capital Employed and Return on Equity." In Corporate Finance, 216–34. Chichester, UK: John Wiley & Sons, Ltd, 2017. http://dx.doi.org/10.1002/9781119424444.ch13.
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"Return on Capital Employed and Return on Equity." In Corporate Finance, 216–35. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2015. http://dx.doi.org/10.1002/9781119208372.ch13.
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Wisniewski, Piotr. "The Management and Performance of Social Media Initial Public Offerings (IPOs)." In Analyzing the Strategic Role of Social Networking in Firm Growth and Productivity, 1–21. IGI Global, 2017. http://dx.doi.org/10.4018/978-1-5225-0559-4.ch001.
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Social media companies have increasingly used global stock exchanges to raise fresh capital needed to expand and commercialise their business models. Despite the soaring proliferation of social media interactions and improving economic fundamentals, many of the high-profile IPOs have underperformed on debut and in secondary trading. This chapter seeks to identify success and failure factors of social media stock market flotations from the operational, industrial and financial perspectives. The research features flagship social media IPOs comprised by the most representative social media Exchange Traded Fund (ETF), the Global X Social Media Index ETF (SOCL), which replicates the price and return performance of the globally recognised Solactive Social Media Total Return Index. The analysis sums up the early evidence of IPO organisation with regard to social media issuers and posits three decisive factors in this process related to: flotation timing, pricing and pre-IPO business integration. The research offers some practical recommendations for future social media IPOs as well as directions for further academic studies at the interface of social media industrial, economic and capital market activity. The following takeaways concerning social media IPOs emerge from the study: 1) Staging and timing: social media companies should mull flotations when a clear-cut path toward cash generation and accrual profits is observable (chronically cash deficient and unprofitable social media tend to underperform on debut and in post-IPO trading) and amid protracted bull markets so as to raise the odds of a propitious IPO climate; 2) Organisation and management: the success of social media going public decisions is a function of seamless IPO organisation (including conservative pricing, share dilution tied to envisaged liquidity and capital expenditure as well as trading and clearing system reliability); 3) Issuer characteristics: social media IPOs are facilitated by businesses commanding a dominant position on the home market, having a diversified core business (including exposure to non-media operations), coming on the stock market either as industry trendsetters or in the wake of successfully executed IPO benchmarks; 4) Factor coalescence: no isolated factor discussed in this chapter can fully explain the performance of a social media IPO – it is rather their combination and interconnectivity that can comprehensively attest to the success or failure of a going public strategy employed by a social media company. From the investment standpoint, the case study analysis demonstrates that a case-by-case (rather than sectoral) approach needs to be adopted for investors seeking to derive gains from social media IPOs, as passive exposure to the entire industry (e.g. via index tracking) is not per se a guarantor of market competitive investment performance.
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Namala, Anselm, and Mursali A. Milanzi. "Retired but Not Tired: Entrepreneurial Motives and Performance among Retired Public Servants in Tanzania." In Who Wants to Retire and Who Can Afford to Retire? IntechOpen, 2020. http://dx.doi.org/10.5772/intechopen.94281.
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Venturing into a business venture at an old age is an interesting phenomenon. Retirees seem to consider this decision as imperative as it provides them with a source of earning and keeps them active post-retirement. Despite a plethora of research on entrepreneurship, there is a paucity of research on entrepreneurial behavior and performance retired public servants. The current study examines the motive and performance of businesses owned by retired public servants in Tanzania, one of the developing economies. The study used a survey of 90 randomly selected public servants who retired between 2012 and 2016. The descriptive and probit regression analyses were used to examine the entrepreneurial performance and factors associated with it. The results of the analysis suggest that the performance of the businesses is generally not good, as the majority made losses for the past 3 years consecutively. As for the determinants of performance, the study observed that age and source of capital negatively affect performance, whereas education and planning/preparations for business establishment positively influenced entrepreneurial performance. The findings imply that employees, employers and social security industry have a role to play in creating awareness and preparing public service employees for life after retirement especially in sustaining post-retirement income. Lumpsum pension and monthly allowance may be necessary, but the knowledge to manage them through profitable business ventures my be sufficient for a better post-retirement life.
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Sanchez, Marcelo. "What Drives Euro Area Labour Productivity Growth?" In Bridging Microeconomics and Macroeconomics and the Effects on Economic Development and Growth, 231–58. IGI Global, 2021. http://dx.doi.org/10.4018/978-1-7998-4933-9.ch012.
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This chapter uses a nonparametric, international production-frontier approach with a focus on euro area growth accounting. The authors uncover two robust findings for the period since 1980. First, estimated euro area efficiency scores lie much below the world production frontier (gap mostly in the range of 10% to 20%), suggesting the need for structural reform efforts to enhance resource use. Second, the use of human capital series points to a significant effect on euro area labour productivity—highlighting the positive macroeconomic return to education—while entailing a considerable reduction in the estimates of technological progress. Third, they fail to detect significant changes in cross-country distributions of labour productivity both before and after 1995. The only exception concerns the shift in the labour productivity distribution between 1980 and 1995—attributable to the role of physical capital deepening—when they employ the Barro and Lee human capital measure together with World Penn Tables data for the full set of countries, and this only at the 10% significance level.
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Mishra, Shraddha, and Reenu Bansal. "Credit Rating and Its Interaction With Financial Ratios." In Behavioral Finance and Decision-Making Models, 251–68. IGI Global, 2019. http://dx.doi.org/10.4018/978-1-5225-7399-9.ch014.
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Credit rating evaluates credit worthiness of corporate and securities issued by government. It provides investors with unbiased reviews and opinion about the credit risk of various securities. The main aim of the chapter is to identify the relationship between the financial ratios and rating symbols. The sample of 158 firms is taken into consideration that discriminates best ratings given by credit rating firms. In order to examine the variability in ratings issued by various rating agencies, the time period of eight years starting from April 2009 to March 2017 has been selected. The study employed the multinomial logistic regression model to explain the relationship among the variables. The analysis suggests that variables such as debt to equity ratio, profit after tax, returns on capital employed, and return on net worth are those having the highest impact on ratings and thus there is also discriminating power among Indian rating agencies.
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Verhoef, Grietjie. "Affirming the roots." In The Power of Your Life, 269–325. Oxford University Press, 2018. http://dx.doi.org/10.1093/oso/9780198817758.003.0006.
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Sanlam returned to insurance and the delivery of value-adding financial services by disposing of a large investment in a banking company, thereby freeing up its capital for financial services diversification at last. Aggressive pruning of non-performing operations in the domestic and international markets, business operational restructuring, and a new management philosophy put Sanlam on the road to improved efficiency. With a focus of value-adding financial services to the entry-level market, as well as established markets in the UK, Sanlam improved return on equity employed, and positioned itself for global expansion. From an emerging market the path dependence of empowerment strategies were reinforced in new markets. From a strong strategy directing central management platform, optimal operational authority at the level of transacting positioned the company as a global player.
Conference papers on the topic "Return on capital employed (ROCE)"
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Quercioli, Valter. "Advanced Services for Turbomachinery Asset Management." In ASME Turbo Expo 2005: Power for Land, Sea, and Air. ASMEDC, 2005. http://dx.doi.org/10.1115/gt2005-68184.
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Operations have a key role to play in today’s highly competitive environment, as they must provide the utmost effectiveness in asset management practices to boost the Return on Capital Employed (ROCE) back to the asset Owners. Asset Management Effectiveness (AME) can be rooted in a certain number of Operator-controllable leverages, that this paper is aimed to show thru a simple model. The model ties the identified operational leverages to the ROCE, providing guidance for the Operators to communicate properly with the asset Owners for demonstrating the financial benefits of their operational practices. A certain number of advanced services available to the Operators are shown and described, that can support both Operations and asset Owners in their search for the highest financial returns from existing assets.
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Purwanti, Ari. "The Role of Return on Assets on the Effect of Value Added Capital Employed towards Business Growth." In Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018). Paris, France: Atlantis Press, 2019. http://dx.doi.org/10.2991/aicar-18.2019.17.
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Johannesen, Steven, Thomas Lagarigue, Gordon Shearer, Karen Owen, Grant Wood, and Will Hendry. "Probability-Derived Risk-Model: Lowers Costs through Reduction in Backup Tool Requirements, Improves Return on Capital Employed for the Contractor, and Reduces Scope 1 CO2 Emissions." In SPE/IADC International Drilling Conference and Exhibition. SPE, 2021. http://dx.doi.org/10.2118/204021-ms.
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Abstract A review of the utilization of Drilling Equipment highlighted an opportunity to lower operational cost for the Operator, reduce Capital Employed for the Service Company, and reduce industry Scope 1 CO2 emissions. The Operator and the Oilfield Services Company set the objective of developing a risk-based probability model that could be used to assess the positive and negative financial impacts of reducing, or perhaps entirely removing, the need for backup drilling tools in the historically risk-averse UK North Sea. The scope of the analysis was to be a drilling campaign on a single rig contracted by the Operator (Rig A). The last three years of Drilling tool reliability data from North Sea operations, as recorded by the Drilling Service Provider, were used as an input. To assess the probability of failure, a Binomial Model was developed to create a Binomial Distribution for each tool, before determining the probability of failure of a given drilling string. The method calculates the probability of having 0 to X failures for a selected Drilling tool/string for a given number of runs. Three Binomial Models were developed to analyze the effect of "Easy", "Moderate" and "Challenging" drilling environments on drilling tool reliability. A financial risk model was developed that balanced the probability-weighted cost of failure for the Operator against the lower costs resulting from reduced tool provision by the Service Provider. In order to better estimate the risks and financial impacts on the project, Sensitivity Analysis was performed on the financial risk model using the three Binomial Models. Scope 1 CO2 emission reductions result from fewer logistical movements and diminished backup tool manufacturing requirements. As a result of the analysis, it was shown that recent improvements in tool reliability support a reduction in backup Drilling tools for the majority of North Sea drilling scenarios, meeting the objective of reducing well construction cost while lowering carbon footprint. Open discussions, focused on maximizing economic hydrocarbon recovery, reducing costs for the Operator, improving Return on Capital Employed for the Oilfield Services Provider and reducing Scope 1 CO2 emissions, resulted in a commercial model that could deliver a Win-Win scenario for all parties. It was observed that the approach was scalable, and would deliver further benefit from a broader workscope, generating "network" benefits when applied to a cluster of rigs, and/or an entire play/basin. In addition, the risk model can be applied to alternative industry scenarios where strong reliability data exist.
Reports on the topic "Return on capital employed (ROCE)"
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Yonkers, Michael A., and Marek Flis. Return on Capital Employed at Naval Dental Center Gulf Coast. Fort Belvoir, VA: Defense Technical Information Center, December 2003. http://dx.doi.org/10.21236/ada420591.
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