To see the other types of publications on this topic, follow the link: Return on capital employed (ROCE).
Journal articles on the topic 'Return on capital employed (ROCE)'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Return on capital employed (ROCE).'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
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.
Full textAbstract:
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.
2
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.
Full textAbstract:
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.
3
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.
Full textAbstract:
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.
4
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.
Full textAbstract:
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.
5
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.
Full textAbstract:
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.
6
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.
Full textAbstract:
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.
7
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.
Full textAbstract:
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.
8
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.
Full textAbstract:
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.
9
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.
Full textAbstract:
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.
10
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.
Full textAbstract:
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.
11
Christnatalia, Christnatalia. "ANALYSIS ON FINANCIAL EFFICIENCY SYNERGY ON PUBLIC COMPANIES IN THE PRIMARY SECTOR AND INDUSTRY POST MONETARY CRISIS LISTED IN JSX." Business and Entrepreneurial Review 9, no. 2 (March 30, 2016): 137. http://dx.doi.org/10.25105/ber.v9i2.35.
Full textAbstract:
The background of this research was merger and acquisition wave frequently in higher research and development needed and new technology implemented companies related in chemical create<br />lower financial performance after merger and acquisition. The objective of this research was to test the significance of the difference between the efficiency financial performance before and<br />after merger and acquisition. The design of this research applied purposive random sampling, quantitative method two means difference model, and statistic software SPSS for problem solving.<br />Data analysis applied measuring return on capital employed. The result of research indicated that merger and acquisition activities can not improved efficiency of emittens or ROCE ratio in all emittens were getting worse after merger and acquisition
12
Siddiqua, Ayesha, A. N. M. Minhajul Haque Chowdhury, Md Jahangir Alam Siddikee, Abu Sayed Md Mahmudul Haque Chowdhury, and Shahnaz Parvin. "Key Ratios Analysis between Conventional and Islamic Banking in Bangladesh." Global Disclosure of Economics and Business 5, no. 2 (December 31, 2016): 77–84. http://dx.doi.org/10.18034/gdeb.v5i2.131.
Full textAbstract:
The proliferation of banking sector is an indicator of economic growth in Bangladesh. Conventional Banks as well as the Islamic Banks significantly influence the national economy although there are a number of dissimilarities between the two banking systems. This study was carried out to identify the differences of Conventional and Islamic Banking sectors in terms of ratio analysis. A total of 10 banks in which 5 Conventional and 5 Islamic banks were selected for the study. Some key financial ratios were being used for the analysis. It is found from the study that the Conventional and Islamic Banks had much influence on the national economy as they hold the deposit of general public and invest the funds in profitable projects. The earnings per share (EPS), return on asset (ROA), return on equity (ROE) and return on capital employed (ROCE) were greater in Islamic Banks. It clearly indicates that the Islamic Banks were more profitable and performing a good job in the context of Bangladesh although people preferred Conventional Banking most.
JEL Classification Code: G 21
13
Shah, Sobia Shafaq, Shafeeq Ahmed Pitafi, and Arjumand Soomro. "The Nexus Between Capital Structure And Firms’ Profitability: Evidence From Oil & Gas Sector of Pakistan." Journal of Business Strategies 13, no. 1 (October 31, 2019): 109–24. http://dx.doi.org/10.29270/jbs.13.1(2019).077.
Full textAbstract:
The optimal capital structure is conceptualized as a basic framework pertinent to acquiring, utilizing, and contributing financial resources of the organization. The estimation and maintenance of the capital structure of a firm are the integral managerial decisions that could ultimately affect the future of the organizations. No doubt, the potential of profitability is the first thing for its future growth and to inculcate a sense of confidence among investors to invest in the firms. This study aims at examining the nexus between capital structure and profitability of firms in the context of the Oil & Gas sector of Pakistan. The sample of this research is comprised of the top five top-performing firms of the Oil & Gas sector for a period of ten years (2006-2015). Keeping in view the explanatory orientation of this research, quantitative research approach was employed. In order to achieve study objectives, the secondary data were extracted from the financial statements of the firms under study and data were analyzed through descriptive statistics and correlation coefficients. During data analysis, the profitability of the firm was measured in terms of Gross Profit Ratio (GPR), Return on Capital Employed (ROCE) and Return on Equity (ROE). Whereas, the capital structure was measured in terms of Debt to Equity (D/E) ratio and Debt to Total Funds (D/TF) ratio. The findings drawn from this study revealed a negative linkage among various dimensions of the capital structure of firms and their profitability potential in the context of the Oil & Gas sector of Pakistan. Primarily, this study findings corroborated that sample firms under study brought sudden changes in the composition of their debt and equity mix (capital structure) that significantly threatened the profitability of firms. The study suggests that selected firms understudy the need to adopt consistent capital structure policies with a clear understanding of future profitability. Financial managers need to focus on developing prudent optimal capital structure and avoid making abrupt changes in the debt and equity mix of firms.
14
Pelaez-Verdet, Antonio, and Pilar Loscertales-Sanchez. "Key Ratios for Long-Term Prediction of Hotel Financial Distress and Corporate Default: Survival Analysis for an Economic Stagnation." Sustainability 13, no. 3 (January 31, 2021): 1473. http://dx.doi.org/10.3390/su13031473.
Full textAbstract:
Hospitality companies often face economic crises, which stress their financial structure. In 2008, Spanish hotels were jeopardized when the travelers’ flows became stagnated, in either domestic and foreign markets. Most of them overcame the crisis, but not all, in part depending on their capital structure at the moment the downturn loomed upon them. This study analyzes the financial ratios registered in 2008 by 3.341 Spanish lodging enterprises, to find out the most relevant ratios that were associated with an eventual breakdown. The analyzed ratios have been largely suggested by previous literature for anticipating financial distress; however, using survival tables and Kaplan–Meier estimates we could also find new insights about several promising variates for future research. In the end, by performing a Cox regression, we could isolate the return on capital employed (ROCE) ratio as a long-term predictor for small hotels’ bankruptcy after a market downturn. Moreover, the legal status seems to be a key predictor concerning medium-sized hotels.
15
Cherian, Jacob, Muhammad Umar, Phung Thu, Thao Nguyen-Trang, Muhammad Sial, and Nguyen Khuong. "Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy." Sustainability 11, no. 4 (February 23, 2019): 1182. http://dx.doi.org/10.3390/su11041182.
Full textAbstract:
The present study analyzed the impact of corporate social responsibility (CSR) reporting on the financial performance of Indian companies. It used secondary data from 50 manufacturing companies over the period of fiscal years 2011 to 2017. The results suggested that there exists a significant relationship between the performance of Indian companies and their CSR. The CSR not only improves the firm’s social value and reputation but also improves profitability and performance. According to the results, return on assets is significantly determined by corporate governance, customers, products, number of employees, and board size. The customer has a negative impact on return on assets (ROA). The relationship between return on equity and independent variables is the same as the relationship between ROA and independent variables. Corporate governance and product positively impact ROE, but the relationship between customers, number of employees, and board size are negative. Corporate governance and product positively impact return on capital employed (ROCE), but the relationship between customer and the number of employees is negative. Education has positive impact on profit after tax (PAT) and profit before tax (PBT), but the PAT relationship between environments is negative. Corporate governance and product positively impact PBT. In general, we concluded that in India, socially responsible corporations perform better and vice versa.
16
Kalsie, Anjala, and Shikha Mittal Shrivastav. "Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach." Indian Journal of Corporate Governance 9, no. 2 (December 2016): 148–72. http://dx.doi.org/10.1177/0974686216666456.
Full textAbstract:
This article seeks to examine the relationship between the board size and firm performance. Existing literature on board size is based on different theories of corporate governance. While agency theory and resource dependency theory suggest that the board size positively affects performance, stewardship theory favours smaller board size and argues that larger board size negatively impacts the firm performance. The present article adds to the empirical literature by employing panel data analysis of 145 non-financial companies listed in the NSE CNX 200 Index of India corresponding to 16 industries. The study is carried out for a period of five years from 2008 to 2012. The firm performance has been measured using Tobin’s Q and the market-to-book value ratio (MBVR) as market-based measures and return on assets (ROA) and return on capital employed (ROCE) as accounting-based measures. The fixed effect model, random effect model and feasible generalised least square (FGLS) regression models are applied to achieve the above-mentioned objectives. The results conclude that the board size has a positive and significant impact on the firm performance.
17
Guthridge, Matt, and Jason Miller. "Driving superior returns through strategic alignment in oil and gas." APPEA Journal 55, no. 2 (2015): 434. http://dx.doi.org/10.1071/aj14069.
Full textAbstract:
In the past decade, Australia has enjoyed significant investment in its LNG, gas and oil projects, with the combined value of projects at the publicly announced stage totalling A$197 billion. The cost of developing new LNG, gas and oil projects has escalated in the past 10 years, making Australia less competitive with locations such as North America and East Africa. The higher costs mean that many proposed projects, especially greenfield developments, will not reach a final investment decision. In this constrained investment environment, it is important for oil and gas companies to execute strategies that earn a strong return on the capital they employ. More than 200 Australian and Asian energy and resources executives were asked to rate their company’s strategic execution capability; this revealed that oil and gas companies that have strategically-aligned operating models earn higher returns on capital employed (ROCE). It was found that while 79% of respondents believe their organisations have the correct strategy in place, only 55% believe their organisation is executing their strategy well now. The research revealed that highly aligned oil and gas organisations are three times more likely to be executing successfully than their less aligned peers. Overall, the results imply that top teams who clearly align behind a strategy and successfully translate its intent throughout their organisations make better use of their invested capital. The level of strategic alignment is a key question for both oil and gas investors and company executives.
18
Iheduru, Ngozi G., and Ike Romanus Chukwuma. "Effect of Environmental and Social Cost on Performance of Manufacturing Companies in Nigeria." International Journal of Accounting & Finance Review 4, no. 2 (August 11, 2019): 5–12. http://dx.doi.org/10.46281/ijafr.v4i2.378.
Full textAbstract:
This study examines the effect of environmental and social costs on performance of manufacturing companies in Nigeria. The objectives of this study are to examine the relationship between environmental and social costs and performance of manufacturing companies in Nigeria. The data for the study were collected from annual reports and accounts of fourteen (14) randomly selected manufacturing companies in Nigeria. The data were analyzed using multiple regression models. The key findings of the study shows that there is significant negative relationship between Environmental and social costs and Return on Capital Employed (ROCE) and Earnings per share (EPS) and a significant positive relationship between environmental and social costs and Net Profit Margin (NPM) and Dividend per Share (DPS). Based on this it was recommended that government should give tax credit to organizations that comply with its environmental laws in order to reduce their environmental costs and that environmental reporting should be made compulsory in Nigeria so as to improve the performance of organizations and the nation as a whole.
19
Majanga, Byson Beracah. "Corporate CAPEX and market capitalization of firms on Malawi stock exchange: an empirical study." Journal of Financial Reporting and Accounting 16, no. 1 (March 12, 2018): 108–19. http://dx.doi.org/10.1108/jfra-10-2016-0080.
Full textAbstract:
Purpose Market capitalization of firms reflects the current value of a firm and provides a reasonable basis on mergers and acquisition bargains. Determinants of a firm’s increasing or decreasing market capitalization are multi-faceted, hence the study. The paper is about a historical study of the responsiveness of common share prices of some listed industrial companies to the firms’ investments in capital expenditure. This study aims to discuss the impact of capital expenditure on a firm’s market capitalization, with a focus on companies listed on the Malawi stock exchange (MSE). Design/methodology/approach The study reviews data collected from published annual reports for the years from 2007 to 2015. The variations in capital expenditure (CAPEX) which are termed “increase” or “decrease” were studied to establish their association with variations in stock prices before the increase or decrease, and after the increase or decrease. As stock price changes are caused by other determinants, the variables of return on capital employed (ROCE), net profit margin (NPM), asset turnover (ATO) and earnings retention ratio (ERT) were analyzed, and a respective correlation test was done against CAPEX movement over the years through panel data analysis and regression analysis to establish the correlation between the variables using XLSTAT. Findings At 95 per cent confidence level, CAPEX correlates with ROCE and NPM at 0.373 and 0.249 coefficients, respectively, and negatively with ERT at 6.45e-2. With tests favoring a positive relationship between elements of profitability and stock price, the study finds that there is a positive relationship between a firm’s CAPEXs and its future stock prices. Research limitations/implications The firm’s commitment to CAPEX has a positive impact on its stock price on the stock exchange. These findings, however, need to be interpreted with caution as the data reviewed excluded that from financial institutions, the inclusion of which may affect the outcome, and that the data are derived from a small and young stock market which may be lacking in its efficiency compared to the old and big ones the world over. Originality/value The study was undertaken based on the study of listed companies on the Malawi Stock Exchange, and the results may or may not reflect the reality on the ground in other stock exchanges.
20
Zulkipli, Muhamad Adhwa, Nik Anis Idayu Nik Abdullah, and Amrizah Kamaluddin. "The Relationship Between Financial Leverage and Liquidity, and Firms’ Profitability of the Agricultural Industry: Evidence from Malaysian Listed Firms." Asia-Pacific Management Accounting Journal 14, no. 3 (December 31, 2019): 203–21. http://dx.doi.org/10.24191/apmaj.v14i3-09.
Full textAbstract:
This study examined the relationship between financial leverage and liquidity with firms’ profitability of the Malaysian agricultural industry between 2011 to 2015. Additionally, the study attempted to examine the ability of both financial leverage and liquidity in predicting firms’ profitability. Financial ratios of 40 agriculturural firms’ that were listed in the Bursa Malaysia Main Board were taken as the sample. The selected variables for the study were Debt Equity Ratio (DTE), Interest Coverage Ratio (ICR), Proprietary Ratio (PR), Current Ratio (CuR), Quick Ratio (QR) and Cash Ratio (CsR) as the independent variables whilst Return on Capital Employed (ROCE) was the dependent variable. The study discovered that significant relationships exists between both financial leverage and liquidity and firm profitability. In addition, both financial leverage and liquidity are also significant to explain and predict firms profitability. The results confirm the trade-off theory, which suggests that firm profitability would increase as the level of debt increases, but only to an optimal level where any subsequent increment in the firms’ debt level upon reaching its optimal level would result in the contraction of its profitability. Keywords: financial leverage, liquidity ratio, firm’s profitability, agriculture firms
21
Gololo, Ibrahim Aliyu. "Corporate Social Responsibility Disclosure and Financial Performance of Quoted Nigerian Cement Companies." International Business and Accounting Research Journal 3, no. 2 (July 1, 2019): 89. http://dx.doi.org/10.15294/ibarj.v3i2.60.
Full textAbstract:
The issue of CSRD has been recognized as an evolving phenomenon since late 1970’s and it has been given attention in accounting literature with increased pressure from the stakeholders on companies to pay-back to their host communities. This study examines empirically the relationship between corporate social responsibility disclosure and financial performance of quoted cement companies in Nigeria. Secondary data were sourced and used from the quoted Nigerian cement companies annual reports. A Samples of three [3] companies emerged from the population of five [5] companies using purposive sampling technique method. This study utilizes annual report of ten [10] years period covering [2008-2017] to obtain data for the study. The objective of this study is to examine relationship between CSRD and financial performance of quoted cement companies in Nigeria. Pooled OLS and Random Effect [RE] Panel Estimation analysis methods were used to display and discuss the results using STATA Version 12. The results revealed that corporate social responsibility disclosure have a significant and positive impact on the return on equity and return on capital employed. However, leverage and company size as control variables have a positive significant effects on the financial performance of quoted cement companies in Nigeria. Thus, CSRD is an important component to consider in determining financial performance of companies. The study recommends that quoted cement companies should increase the level of their CSR activities due to its enormous benefits on their financial performance, especially on the ROE and ROCE and Government should set quantum amount of atleast 2.5% on PBT of cement companies for execution of CSR activities to their immediate communities.
22
Dhar, Sajon, and Mohammad Ashraful Ferdous Chowdhury. "Impact of Environmental Accounting Reporting Practices on Financial Performance." International Journal of Asian Business and Information Management 12, no. 1 (January 2021): 24–42. http://dx.doi.org/10.4018/ijabim.20210101.oa2.
Full textAbstract:
The study intended to explore the effect of environmental accounting reporting (EAR) practices on the financial performance of the banking industry of Bangladesh. Panel data consisting of 25 listed banks in Dhaka Stock Exchange (DSE) over the period 2012 to 2016 has been employed in this study. An environmental accounting reporting score (EARS) index has been developed by analyzing the content of banks' annual reports. Using Pooled OLS, the analysis revealed that EAR reporting had been increased after publishing the Bangladesh bank guideline. The empirical analysis showed that a significant positive correlation between EAR and profit margin (PM). However, EAR has an insignificant relationship with ROAE (return on average equity), EPS (earnings per share), and ROAA (return on average assets). Among control variables, size, capital ratio, overhead expense, and loan ratio have a significant impact on financial performance.
23
Aro, S. O., and O. Olowofeso. "Castration: Its economic implications on swineherd profitability." Nigerian Journal of Animal Production 35, no. 2 (January 11, 2021): 259–66. http://dx.doi.org/10.51791/njap.v35i2.2477.
Full textAbstract:
A 16-week trial was conducted to investigate the effect of castration on the profitability of the weaning to finishing operation of the swine enterprise. Eighteen pigs were allotted into three treatments comprising the male castrates (MC), the intact males (IM) and the intact females (IF), respectively. The pigs were exposed to the same management and environmental conditions throughout the duration of the trial. Total costs per treatment were N67,583.14, N68, 256.34 and 167,583.14 for the I.M, M.C and I.F and did not show any significant difference (P>0.001). The gross margin per treatment however gave values (revenue) of N85,268±40.62 for the intact male group, N68,962±26.56 for the male castrate group and N69,588±35.38 for the I.F group with statistical significant differences (P<0.001) between the I. M group and the other two groups. 97.08 cycles or 32.35 years were needed as the pay back period for the M.C. group. 33.67 cycles or 11.22 years for the I.F group and 3.82 cycles or 1.27 years for the I.M. group. The calculated return on capital employed (ROCE) gave values of 1.03 %, 26.17% and 2.97% for the M.C., I.M and I.F groups respectively. The study revealed an enormous economic damage that could be inflicted by castration as a management practice on the profitability of the weaning to finishing operation of the pig enterprise. The study also unlocked the huge economic benefit that could accrue to farmers when intact males as opposed to their male castrate counterparts are used in this line of pig production enterprise.
24
Sanan, Neeti Khetarpal. "Board Gender Diversity, Financial and Social Performance of Indian Firms." Vision: The Journal of Business Perspective 20, no. 4 (November 28, 2016): 361–67. http://dx.doi.org/10.1177/0972262916673006.
Full textAbstract:
Gender diversity of boards is an important dimension of corporate governance but there have been limited studies in this regard using Indian data. The present study is motivated by the need to extend research on impact of gender diverse boards, an integral element of corporate governance, in the Indian context. Specifically, the study investigates impact of gender-wise heterogeneous boards on financial and social performance of Indian firms. The sample consists of 54 companies drawn from Economic Times ranking, spread over widely different industry segments, 38 of which belong to the private sector and 16 to the public sector. The study uses Blau’s diversity index to capture gender diversity of the Board. With regard to financial performance, this study uses accounting-based return on capital employed (ROCE) as a proxy measure because accounting-based measures more effectively capture the internal efficiency of firms. In order to measure social performance, the research develops firm-specific corporate social responsibility score (CSRS) using the KLD (Kinder, Lyderberg, & Domini) assessment parameters namely shareholder relationships, environment, product, community and employee relations. Controlling for variables such as firm size (measured by natural logarithm of assets), leverage (measured by debt to equity ratio) and board size (measured by natural logarithm of number of people constituting the board) that might impact financial and social performance, the study examines interrelationship with gender diversity using regression analysis. Results of the current research do not find a significant association of gender diversity of corporate boards with financial performance of firms. Also, the study is unable to establish significant association between gender diversity of boards and social performance. The study concludes that relationship between this element of corporate governance and firm performance in India requires investigation over a longer duration. This line of research is expected to provide useful insights into whether there is a business case for gender diverse corporate boards. This input would have significant firm-specific and public policy implications.
25
Garlinia Yudawisastra, Helin, Daniel T. H. Manurung, and Fitria Husnatarina. "Relationship between value added capital employed, value added human capital, structural capital value added and financial performance." Investment Management and Financial Innovations 15, no. 2 (June 11, 2018): 222–31. http://dx.doi.org/10.21511/imfi.15(2).2018.20.
Full textAbstract:
Companies that can survive are companies that need to quickly change its strategy from a business based on labor towards knowledge-based business, so that the main characteristics of the company are changed towards a science-based company. This study examines the relationship of value added capital employed, value-added human capital, structural capital value added and financial performance. The method of this research is purposive sampling with a total of 34 samples analyzed by using Eviews version 9. The result stated that value added capital employed has no effect on return on asset, value added human capital has an effect on return on asset, structural capital value added has an effect on return on asset.
26
Kartika Putri, Aulia, and Erina Sudaryati. "INTELLECTUAL CAPITAL DAN ABNORMAL RETURN SAHAM." e-NARODROID 4, no. 2 (September 28, 2018): 54–59. http://dx.doi.org/10.31090/narodroid.v4i2.737.
Full textAbstract:
ABSTRAK : Penelitian ini bertujuan untuk mengetahui pengaruh Intellectual Capital (IC) yang diukur menggunakan Value Added Intellectual Capital (VAIC™) yang mempunyai tiga komponen yaitu Value Capital (VACA-value added capital employed), human capital (VAHU-value added human capital), dan structural capital (STVA-structural capital value added) terhadap reaksi pasar saham yang diproksikan dengan melihat Average Abnormal Return saham pada perusahaan LQ-45. Metode yang digunakan pada penelitian yaitu analisis regresi linier berganda dengan alat anlisis SPSS 17. Teknik pengambilan sampel dengan menggunakan purposive sampling, dan berdasrkan kriteria yang telah ditentukan maka jumlah sampel sebanyak 17 sampel perusahaan LQ-45 selama tahun 2013-2015. Variabel dependen pada penelitian yaitu average abnormal return saham. Variabel independent pada penelitian yaitu tiga komponen VAIC. Hasil penelitian menunjukkan jika VACA berpengaruh terhadap average abnormal return saham dan variabel VAHU dan STVA tidak memiliki pengaruh terhadap average abnormal return saham.
Kata Kunci : intellectual capital, return saham ,value added capital employed, value added human capital, structural capital value added
27
Edi, Edi. "ANALISIS AKUISISI TERHADAP KINERJA KEUANGAN PERUSAHAAN PENGAKUISISI DAN DIAKUISISI TERDAFTAR DI BURSA EFEK INDONESIA." Jurnal Benefita 1, no. 3 (October 14, 2016): 113. http://dx.doi.org/10.22216/jbe.v1i3.1434.
Full textAbstract:
<p>Penelitian ini bertujuan untuk mengetahui dampak akuisisi pada perusahaan pengakuisisi maupun yang diakuisisi terhadap kinerja keuangan perusahaan yang terdaftar di Bursa Efek Indonesia (BEI). Variabel-variabel yang digunakan dalam penelitian ini berupa rasio <em>earning per share</em> (EPS), <em>return on capital employment</em> (ROCE), <em>debt equity ratio</em> (DER), <em>current ratio</em> (CR), dan <em>interest coverage ratio</em> (ICR).</p><p>Sampel dari penelitian ini terdiri dari 79 perusahaan pengakuisisi dan 33 perusahaan diakuisisi yang terdaftar di Bursa Efek Indonesia (BEI) pada periode 2003-2011 yang dipilih dengan menggunakan metode <em>purposive sampling</em>.Data digunakan dalam penelitian ini adalah laporan keuangan dari setiap perusahaan yang terdaftar di BEI. Penelitian ini menggunakan metode <em>paired sample t-test</em> untuk menganalisa uji beda dua sampel berpasangan. Program SPSS (<em>Statistical Package for the Social Science</em>) versi 20 yang digunakan dalam pengujian penelitian ini.</p>Hasil dari penelitian ini menunjukkan bahwa setelah melakukan aksi pengakuisisi dan aksi diakuisisi variabel <em>earning per share</em> (EPS), <em>return on capital employment</em> (ROCE), <em>debt equity ratio</em> (DER), <em>current ratio</em> (CR), dan <em>interest coverage ratio</em> (ICR) tidak mempunyai pengaruh signifikan terhadap kedua aksi tersebut antara pengakuisisi dan maupun yang diakuisisi.
28
Baba Abdullahi, Buhari, Sirajo Murtala, Sagir Lawal, and Mohammed Ibrahim. "Capital Structure and Return on Capital Employed of Construction Companies in Nigeria." African J. of Accounting, Auditing and Finance 6, no. 1 (2017): 1. http://dx.doi.org/10.1504/ajaaf.2017.10008040.
Full text
29
Murtala, Sirajo, Mohammed Ibrahim, Sagir Lawal, and Buhari Baba Abdullahi. "Capital structure and return on capital employed of construction companies in Nigeria." African J. of Accounting, Auditing and Finance 6, no. 1 (2018): 1. http://dx.doi.org/10.1504/ajaaf.2018.091125.
Full text
30
Setiawan, Rahmat, and Budi Yuda Prawira. "Intellectual Capital and the Performance of Manufacturing Companies in Indonesia." JMM UNRAM - MASTER OF MANAGEMENT JOURNAL 7, no. 3 (September 17, 2018): 13. http://dx.doi.org/10.29303/jmm.v7i3.312.
Full textAbstract:
This study aimed at examining the effect of intellectual capital and its components covering value added capital employed, value added human capital, and structural capital value added on the firm performance. Intellectual capital was measured by using Pulic’s model, while the firm performance was measured by return on asset, return on equity, and market-to- book ratio. The samples used in this study were 103 manufacturing industries and we also investigated every subsector of the manufacturing industries including 51 basic and chemical industries, 30 miscellaneous industries, and 22 consumer goods industry listed on Indonesia Stock Exchange during the period of 2012 up to 2016. Multiple regression analysis was used to test the hypothesis. The result of the study showed that intellectual capital had a significant positive effect on return on asset, return on equity, and market-to-book intellectual capital on the firm performance in each subsector of the manufacturing industry. Value added capital employed as a component of intellectual capital was the most influential component on the firm performance. This findings indicated that a firm with great and well managed of capital employed, allowing a firm to improve their performance. Penelitian ini bertujuan untuk menguji pengaruh intellectual capital dan komponennya yang meliputi value added capital employed, value added human capital, dan structural capital value added terhadap kinerja perusahaan. Intellectual capital diukur menggunakan model Pulic, sementara kinerja perusahaan diukur dengan return on asset, return on equity, dan market-to-book ratio. Sampel yang digunakan dalam penelitian ini adalah 103 perusahaan pada industri manufaktur, dan kami juga kami meneliti masing-masing subsektor dari industri manufaktur yang meilputi 51 perusahaan pada industri dasar dan bahan kimia, 30 perusahaan pada aneka indstri, dan 22 perusahaan pada industri barang konsumsi yang terdaftar di Bursa Efek Indonesia selama jangka waktu 2012-2016. Analisis regresi berganda digunakan untuk menguji hipotesis. Hasil penelitian menunjukkan bahwa intellectual capital berpengaruh positif signifikan terhadap return on asset, return on equity, dan market-to-book ratio di semua industri. Selain itu, hasil penelitian ini juga menunjukkan bahwa tidak ada perbedaan pengaruh intellectual capital terhadap kinerja perusahaan pada masing-masing subsektor industri manufaktur. Value added capital employed yang merupakan komponen dari intellectual capital merupakan komponen yang paling berpengaruh terhadap kinerja perusahaan. Temuan ini menunjukkan bahwa perusahaan dengan modal yang besar dan dikelola dengan baik, memungkinkan perusahaan untuk meningkatkan kinerjanya.Intellectual capital, value added capital employed, value added human capital, structural capital value added, return on asset, return on equity, market-to-book ratio.
31
G. T., Akinleye, and ADEBOBOYE Roseline. "Assessing Working Capital Management and Performance of Listed Manufacturing Firms: Nigeria Evidence." Information Management and Business Review 11, no. 2(I) (July 27, 2019): 27–34. http://dx.doi.org/10.22610/imbr.v11i2(i).2880.
Full textAbstract:
This study assessed working capital management and performance of listed manufacturing firms in Nigeria 20 firms were sampled, over 10 years. The study employed static data analyses and panel Granger causality test. Result showed that average collection period exerts insignificant negative effect on return on capital employed of the sampled firms, while average collection period also exerts insignificant negative effect on earnings per share of the sampled firms. The result further showed that, average payment period exerts insignificant positive effect on return on capital employed of the sampled firms, but average payment period exerts insignificant negative effect on earnings per share of the sampled firms. The study concluded that, average collection period and average payment exert insignificant effect on return on capital employed of listed manufacturing firms in Nigeria, also; average collection period and average payment period exert insignificant effect on earnings per share of listed manufacturing firms in Nigeria. Hence manufacturing firms in Nigeria should objectively manage average collection period and also maintain a consistent improvement in return on capital employed and earnings per share of listed manufacturing firms in Nigeria.
32
Olaoye, Clement Olatunji, Adeboboye, and Roseline. "Working Capital Management and Performance of Industrial and Consumer Goods Firms in Nigeria: A Comparative Analysis." Information Management and Business Review 11, no. 3(I) (October 31, 2019): 35–45. http://dx.doi.org/10.22610/imbr.v11i3(i).2945.
Full textAbstract:
This study conducted a comparative analysis on working capital management and performance ofindustrial and consumer goods firms in Nigeria. Precisely, the study compared effect of average collectionperiod and average payment period on return on capital employed of selected industrial goods and consumergoods firms. 20 firms were randomly selected over a period of 10 years data were collected from annualreport of the firms. This study used static data analyses to analyze data. Result showed average collectionperiod and average payment period exert insignificant positive effect on return on capital employed ofindustrial goods firms, while both average collection period and average payment period exert insignificantnegative effect on return on capital employed of consumer goods firms. Independent t-test result showedsignificant mean difference between coefficient estimate corresponding to industrial and consumer goodsfirms. This study concluded that there exists significant difference between the effect of working capitalmanagement on performance of industrial goods firms and consumer goods firms when performance ismeasured in terms of return on capital employed. Hence firms in both sub-sectors should be strategic whenmanaging working capital, by setting higher average payment period in a manner that will not crowd-outtheir credit worthiness.
33
Chowdhury, Leena Afroz Mostofa, Tarek Rana, and Mohammad Istiaq Azim. "Intellectual capital efficiency and organisational performance." Journal of Intellectual Capital 20, no. 6 (November 28, 2019): 784–806. http://dx.doi.org/10.1108/jic-10-2018-0171.
Full textAbstract:
Purpose The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the pharmaceutical sector in Bangladesh, an emerging economy that enjoys Trade-Related Aspects of Intellectual Property Rights (TRIPS) relaxation. Design/methodology/approach The study used hand-picked data from annual reports for five years. The relationship between efficient use of intellectual capital and corporate performance was examined through the practical use of human capital, structural capital and capital employed. Multiple regressions were used to assess their impact on financial performance – specifically, return on assets, return on equity, asset turnover and market-to-book value. Findings Value-added intellectual coefficient components (i.e. human capital, structural capital and capital employed) significantly explained asset turnover and return on assets but failed to predict the return on equity outcome. Additionally, asset turnover was negatively influenced by structural capital and positively influenced by capital employed. The return on assets was mostly affected by variation in human capital. Intellectual capital did not predict market-to-book value or investment decisions. Practical implications This paper provides useful resources for evaluating the financial performance and value creation of companies in emerging economies that enjoy TRIPS exemptions; this research could also be extended using cross-industry comparisons. The findings have theoretical and practical implications, particularly for the pharmaceutical industry in emerging economy contexts, and for managers globally. Originality/value This study is among only a few that have reported on the relationship between intellectual capital efficiency and value creation in emerging economy contexts.
34
Aqlan, Saleem Ahmed, RAJESH B. LAHANE, Najib H.S.Farhan, Sanjay Aswale, and K. B. Lengare. "Board characteristics and banks profitability: empirical evidence from India." Studies in Economics and Business Relations 1, no. 1 (December 25, 2020): 9–20. http://dx.doi.org/10.48185/sebr.v1i1.73.
Full textAbstract:
The present paper seeks to examine the association between board characteristics and banks profitability. The study is based on convenience sampling of 10 Indian banks for the period from 2010 to 2019. Banks profitability is measured by return on assets, return on capital employed, profit after tax and return on net worth, while board of directors’ characteristics is measured by board of directors’ size, board of directors’ composition, board of directors’ diligence, board executive directors and board promoters. The study is used leverage, size, and liquidity as controlling variables. Fixed and random effects models are used for analyzing the data. The findings revealed that Total board size positively and significantly impacts return on assets, Return on capital employed, Profit after detecting tax and Return on net worth, while percentage of promoter negatively and insignificant impacts return on assets, Return on capital employed, profit after detecting tax and Return on net worth. The present study contributes to the existing literature by examining the impact of board characteristics which includes board promoters and executive directors on Indian banks profitability.
35
Shiferaw Deneke, Taddesse, and Tripti Gujral. "CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)." International Journal of Advanced Research 9, no. 03 (March 31, 2021): 216–31. http://dx.doi.org/10.21474/ijar01/12576.
Full textAbstract:
A lot of studies have actually been done by numerous researchers both in developed and developing countries such as Ethiopia to ascertain the empirical relationship existing between capital structure and firm performance with varying samples and period as well as application of several and divergent statistical estimation. This study is based on the identification of the impact that capital structure have on the financial performance of commercial banks in Ethiopia. In this regard, secondary data is collected from varied sources especially annual reports of the private commercial banks in Ethiopia. The literature review is done in the report, and it is identified operating, and the capital structure heavily affects net profit. Apart from this, return on equity, asset and capitals employed also affected by the capital structure of the banks. Regression analysis and descriptive analysis tools are used to analyse the data that is related to the sixteenprivate commercial banks in Ethiopia. On analysis of data, it is identified that operating and net profit is heavily affected by the capital structure. However, in the case of return on asset, return on equity, and return on capital employed, such kind of relationship is not observed. Thus, it is concluded on the basis of entire work that capital structure have the huge impact on the operating and net profit, but it does not put any large impact on the return on asset, return on equity and return on capital employed. The study recommended that banks follow a specific policy, in order to maintain a balance in the capital structure. It is also recommended that managers must keep a keen eye on the changes that are taking place in the capital structure.
36
Purnomo, Listiya Ike. "PENGARUH INTELEKTUAL CAPITAL TERHADAP PROFITABILITAS PADA PERUSAHAAN INDUSTRI JASA SEKTOR PROPERTI DAN REAL ESTATE DI BURSA EFEK INDONESIA TAHUN 2011 –2015." JURNAL AKUNTANSI BERKELANJUTAN INDONESIA 1, no. 1 (January 31, 2018): 83. http://dx.doi.org/10.32493/jabi.v1i1.y2018.p83-107.
Full textAbstract:
Penelitian ini bertujuan untuk mengetahui apakah Intellectual Capital diproksikan dengan Value Added Intellectual Coeffisien berpengaruh signifikan terhadap profitabilitas yang diukur dengan ROA menggunakan metode analisis Data Panel yang diolah dengan program Eviews 7.0. Value Added Capital Employed (VACA) menunjukkan t-statistik> t-tabel 0,610972 <1,97253, dan nilai probabilitasnya 0,5420> 0,05 membuktikan tidak ada pengaruh signifikan dari Value Added Capital Employed (VACA) pada Return On Assets (ROA). Nilai Tambah Modal Manusia (VAHU) menunjukkan t-statistik> t-tabel yaitu 5,324171> 1,97253, dan nilai probabilitas 0,0000 <0,05 membuktikan terdapat pengaruh signifikan Value Added Human Capital (VAHU) terhadap Return On Assets (ROA). Structural Capital Value Added (STVA) menunjukkan t-statistik> t-tabel adalah 2,559279> 1,97253, dan nilai probabilitas 0,0113 <0,05membuktikan bahwa ada pengaruh signifikan dari Structural Capital Value Added (STVA) terhadap Return On Assets (ROA) . Nilai Tambah Intelektual Koefisien (VAIC) menunjukkan t-statistik> t-tabel yaitu 20,21010> 1,97253, dan nilai probabilitas 0,0000 <0,05 membuktikan ada pengaruh signifikan Value Added Intellectual Coefficient (VAIC) terhadap Return On Assets (ROA) . Hasil uji simultan menunjukkan F-statistic> F-tabel adalah 59,13104> 2,42 dan nilai probabilitas 0,000000 <0,05 membuktikkan bersama-sama elemen Intellectual Capital memiliki pengaruh yang signifikan terhadap Return On Assets (ROA). Adjusted R-Squared (R2) sebesar 0,558249 menunjukkan bahwa persentase kontribusi variabel independen terhadap variabel dependen adalah 55,8%. Berdasarkan hasil pengujian dan pembahasan, dapat disimpulkan bahwa Intellectual Capital (IC) yang diukur dengan Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) dan Value Added Intellectual Capital (VAIC) Memiliki pengaruh yang signifikan terhadap profitabilitas yang diukur dengan Return On Assets (ROA).
37
Ratnadi, Cening Ayuni, Gusti Ayu Mahanavami, and Ida Bagus Ngurah Wimpascima. "INTELLECTUAL CAPITAL PENGARUHNYA TERHADAP RETURN ON ASSETS (ROA) PADA PERUSAHAAN SUB SEKTOR OTOMOTIF DAN KOMPONEN DI BURSA EFEK INDONESIA." Warmadewa Management and Business Journal (WMBJ) 3, no. 2 (August 9, 2021): 60–68. http://dx.doi.org/10.22225/wmbj.3.2.2021.60-68.
Full textAbstract:
Perbaikan dan perubahan di bidang bisnis menjadikan perusahaan percaya bahwa modal intelektual menjadi komponen dan aset penting dalam mengukur dan mengevaluasi kinerja di antara sektor bisnis. Penelitian ini bertujuan untuk menguji pengaruh komponen Intellectual Capital yaitu Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) dan Structural Capital Value added (STVA) terhadap Return On Assets (ROA) pada perusahaan sub sektor otomotif dan komponen di Bursa Efek Indonesia. Teknik pengambilan sampel menggunakan purposive sampling dengan jumlah sampel sebanyak 5 perusahaan sub sektor otomotif dan komponen. Data yang digunakan adalah laporan keuangan periode tahun 2015 – 2019 yang dipublikasikan di website resmi perusahaan. Hasil penelitian menunjukkan bahwa Value Added Capital Employed (VACA) berpengaruh positif siginifikan terhadap Return On Assets (ROA) Pada Perusahaan Sub Sektor Otomotif Dan Komponen, Value Added Human Capital (VAHU) mempunyai pengaruh negatif dan tidak signifikan terhadap Return On Assets (ROA) Pada Perusahaan Sub Sektor Otomotif Dan Komponen dan Structural Capital Value Added (STVA) berpengaruh positif namun tidak signifikan terhadap Return On Assets (ROA) Pada Perusahaan Sub Sektor Otomotif Dan Komponen.
38
Kwong, M. F. C., J. W. Munro, and K. V. Peasnell. "Commonalities Between Added Value Ratios and Traditional Return on Capital Employed." Accounting and Business Research 26, no. 1 (December 1995): 51–67. http://dx.doi.org/10.1080/00014788.1995.9729498.
Full text
39
Naufallita, Qori, and Achsania Hendratmi. "THE INFLUENCE OF INTELLECTUAL CAPITAL ON RETURN ON ASSETS AND RETURN ON EQUITY SHARIA RURAL BANK 2015 – 2017 PERIOD." Jurnal Ekonomi dan Bisnis Islam (Journal of Islamic Economics and Business) 5, no. 2 (December 31, 2019): 124. http://dx.doi.org/10.20473/jebis.v5i2.11787.
Full textAbstract:
ABSTRACT Purpose of this study is to determine the effect of Human Capital Efficiency, Capital Employed Efficiency, and Structural Capital Efficiency on Return On Assets and Return On Equity of Islamic Rural Banks period 2015-2017. This study uses a quantitative approach. Sampling technique is purposive sampling and there were 24 Islamic Rural Banks in Indonesia as subject of research. Analysis technique used is Panel Data Analysis.The results of this study indicate that CEE has a significant positive effect on ROA. Whereas HCE and SCE have no effect on ROA. Simultaneously HCE, CEE and SCE have a significant positive effect on ROA. In addition, the results of this study indicate that HCE and CEE have a significant positive effect on ROE, both partially and simultaneously.ABSTRAKPenelitian ini bertujuan untuk mengetahui pengaruh Human Capital Efficiency (HCE), Capital Employed Efficiency (CEE) dan Structural Capital Efficiency (SCE) pada Return On Assets dan Return On Equity Bank Pembiayaan Rakyat Syariah periode 2015-2017. Penelitian ini menggunakan pendekatan kuantitatif. Pengambilan sampel menggunakan purposive sampling dan terdapat 24 BPRS yang menjadi subyek penelitian. Teknik analisis menggunakan analisis Regresi Data Panel.Hasil penelitian menunjukkan CEE berpengaruh signifikan positif terhadap ROA. Sedangkan HCE dan SCE tidak berpengaruh terhadap ROA Secara simultan HCE, CEE dan SCE berpengaruh signifikan positif terhadap ROA. Selain itu, hasil penelitian ini menunjukkan bahwa HCE dan CEE berpengaruh signifikan positif terhadap ROE, baik itu secara parsial maupun simultan.
40
Hamidah, Hamidah, Dian Puspita Sari, and Umi Mardiyati. "PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN PADA BANK GO PUBLIC YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) TAHUN 2009-2012." JRMSI - Jurnal Riset Manajemen Sains Indonesia 5, no. 2 (September 30, 2014): 186–203. http://dx.doi.org/10.21009/jrmsi.005.02.1.
Full textAbstract:
The purpose of this study is to know the effect of intellectual capital on financial performance on bank go public listed on the Indonesia Stock Exchange in 2009-2012. The sampel are several bank go public. The research method in this study uses correlation study. The research model in this study employs panel data analysis with random effect approach on model 1a and fixed effect approach on model 1b. The empirical results show that intellectual capital that proxy with Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) have positive significant effect on Earning per Share (EPS) but Structural Capital Value Added (STVA) has negative and no significant effect on Earning per Share (EPS). While, Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) and Structural Capital Value Added (STVA) have positive significant effect on Return On Assets (ROA).
Keywords: Intellectual Capital, Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA), Earning per Share (EPS), Return On Assets (ROA)
41
Rustam, Muhibah. "Pengaruh Struktur Modal Terhadap Return On Equity (ROE) Pada PT. Summarecon Agung, Tbk." Movere Journal 1, no. 2 (August 13, 2019): 175–88. http://dx.doi.org/10.53654/mv.v1i2.58.
Full textAbstract:
The purpose of the study was to analyze the impact of capital structure on return on equity (ROE) at PT. Summarecon Agung, Tbk. The type of data used in this study are quantitative and qualitative data. The data source used is secondary data. This study employed the descriptive analysis and a regresion analysis of panel data. The result of study showed that the capital structure showed a positive and not significant effect on return on equity (ROE), the regresion analysis showed Y = -154,79 + 17,31X, the r value of 0,35 which indicates a weak relationship between capital structure and return on equity. R2 of 12,25% which indicates return on equity (ROE) is determined by capital structure and return by other factors not in accordance in this study. The value of thitung (0,75) < ttabel (2,78) shows that capital structure has no significant effect on return on equity (ROE).
Keywords : capital structure, return on equity (ROE)
42
Naushad, Mohammad. "Intellectual capital and financial performance of Sharia-compliant banks in Saudi Arabia." Banks and Bank Systems 14, no. 4 (November 15, 2019): 1–9. http://dx.doi.org/10.21511/bbs.14(4).2019.01.
Full textAbstract:
The current study is aimed at analyzing the impact of intellectual capital on the performance of Sharia-compliant banks in Saudi Arabia for the period 2013–2018. The intellectual capital efficiency has been measured by applying a widely-used proxy to intellectual capital, i.e., Value Added Intellectual Coefficient (VAIC). A multiple linear regression method, based on panel data using the pooled Ordinary Least Squares (OLS), was exerted. Regression equations were obtained to determine the impact of VAIC and its components (Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE)) on the financial performance of banks, designated as Return on Assets (ROA) and Return on Equity (ROE). The study has found out that VAIC has a statistically significant impact on the financial performance of Sharia-compliant banks in Saudi Arabia. But VAIC components fail to have a significant impact on ROE. However, these components significantly affect ROA. The study concludes that Sharia-compliant banks in the Kingdom of Saudi Arabia should pay particular attention to Intellectual Capital (IC) in general and Human Capital (HC), Structural Capital (SC), and Employed Capital (EC) in particular to increase Return on Assets and financial performance as a whole.
43
Maheswari, K., Dr J. Gayathri, Dr M. Babu, and Dr G. Indhumathi. "Determinants Of Capital Structure For Multinational And Domestic Companies In India: Panel Data Regression Model." Restaurant Business 118, no. 7 (July 12, 2019): 147–54. http://dx.doi.org/10.26643/rb.v118i7.8010.
Full textAbstract:
The capital structure refers to the components of capital needed to establish and expand its business activities. The study was made with an objective to examine the determinants of capital structure of multinational and domestic companies listed in S&P BSE automobile sector. The study concluded that there is significant impact on capital structure determinants such as size, business risk, non debt shield tax, return on assets, tangibility, profit, return on capital employed and liquidity on the capital structure of multinational and domestic companies of Indian Automobile Sector.
44
Ahmed Mareai Senan, Nabil, Anwar Ahmad, Suhaib Anagreh, Mosab I. Tabash, and Eissa A. Al-Homaidi. "An empirical analysis of financial leverage and financial performance: Empirical evidence from Indian listed firms." Investment Management and Financial Innovations 18, no. 2 (June 24, 2021): 322–34. http://dx.doi.org/10.21511/imfi.18(2).2021.26.
Full textAbstract:
The purpose of this paper is to examine the determinants of financial performance, firm liquidity and financial leverage of Indian listed firms. This study uses both static models (pooled, fixed, and random effects) and Generalized Moment Methods (GMM). Financial leverage (FINLE) is defined by the ratio of total liabilities to total assets, whereas the current ratio and the quick ratio are used as firm liquidity factors. Further, a set of financial performance determinants such as return on assets, profit after tax, return on capital employed, return on equity, and Tobin-Q are used as independent factors. The results indicated that profit after tax, return on equity, return on capital employed, and Tobin-Q are the most significant financial success variables that influence financial leverage of Indian listed companies. Furthermore, profit after tax, return on capital invested, return on equity, and Tobin-Q are considered to have a substantial effect on financial leverage among the financial success indicators. In the case of firm liquidity, the findings show that the current ratio and the quick ratio have a substantial effect on the financial leverage of Indian listed companies.
45
Karadzic, Vesna, and Tamara Backovic-Vulic. "The Montenegrin capital market: Calendar anomalies." Ekonomski anali 56, no. 191 (2011): 107–21. http://dx.doi.org/10.2298/eka1191107k.
Full textAbstract:
Many researchers have shown that capital markets in CEE countries are weakly efficient in terms of calendar anomalies. The goal of this paper is to investigate whether the capital market in Montenegro is efficient regarding some of these anomalies. The main characteristics of the Montenegrin capital market are briefly explained. The empirical analysis is done on the daily values data of stock market index NEX20. An investigation of the January effect is implemented with the graphical representation of the rate of return for all the months of the seven-year period and by estimation of a regression model of return on index NEX20. The intercept represents the value of the return in January and it is insignificant. The holiday effect, tested by graphical representation for the Statehood Day data, was not present in the whole period. To investigate the turn-of-the-month effect we employed the graphical representation and regression model of the return rate on index NEX20 for the last week of every month and for the rest of the month. The value of the intercept, representing return for the last week of the month, is significant. The absence of some tested calendar anomalies suggests that the Montenegrin capital market is becoming more efficient.
46
Das, Chandrika Prasad, Himanshu Agarwall, and Rabindra Kumar Swain. "Is the Concept of Corporate Governance a Strategic Plan for Firms’ Optimum Capital Structure? Evidence from Manufacturing Companies." Journal of Operations and Strategic Planning 3, no. 2 (October 19, 2020): 113–31. http://dx.doi.org/10.1177/2516600x20949774.
Full textAbstract:
The aim of the article is to examine the relationship as well as measure the impact of corporate governance as a strategic plan on capital structure decision of top Bombay Stock Exchange-listed manufacturing firms in India. Panel regression analysis is employed to estimate the relationship and measure the impact of corporate governance, namely, size, meetings, independent director, women director and audit committee meetings, on the capital structure mix (debt–equity ratio) of the sample corporate, during a 10-year period of 2008–2017. The results of study reveal that the components of corporate governance, namely, size, board meetings, independent director, and audit committee meetings have a positive association with the capital structure variable (debt–equity ratio) of the sample manufacturing companies. However, there is a negative relationship between the control variables (ROCE and NWTA) and the dependent variable of the sample corporate. Overall, as per the study results, a statistically significant impact prevails on the capital structure, of corporate governance variables, taken as a whole. This article adds on to the existing study by highlighting a new prospect of relation and influence of corporate governance on capital structure decisions. The statistical findings of the study provide evidence to the corporate sector in deciding the optimum capital structure, affecting its costs and performance, and to the regulatory authorities in framing and implementing corporate governance mechanisms more effectively and efficiently for improving the economy of the country.
47
Kurniawan, Fajar Dysna, and Siti Zulaikha. "DETERMINAN KINERJA KEUANGAN BANK SYARIAH DI INDONESIA: PERSPEKTIF INTELLECTUAL CAPITAL DAN PENGUNGKAPAN." Jurnal Ekonomi Syariah Teori dan Terapan 7, no. 10 (October 30, 2020): 1929. http://dx.doi.org/10.20473/vol7iss202010pp1929-1943.
Full textAbstract:
ABSTRAKIntellectual Capital diakui oleh para ahli sebagai intangible asset yang mampu menciptakan nilai tambah dan meningkatkan daya saing bagi suatu korporasi. Tujuan dari penilitian ini adalah untuk menganalisi pengaruh atau hubungna anatara intellectual Capital (IC) dan ntellectual capital disclousre (ICD) terhadap kinerja keuangan perbankan syariah di Indonesia. Dengan model pengukuiran IC menggunakan model iB-VAIC (islamic bank-valuie added intellectual capital) dengan komponen (1) iB-VACA (Vallue Added Capital Employed), (2) iB-VAHU (Vallue Added Human Capital ) dan (3) iB-STVA ( Structure Capital Vallue Added) . Proksi pengukuran kinerja keuangan menggunakan ROA (Return On Asset) dan ROE (Return On Equity). Sampel dalam penelitian ini 10 Bank Umum Syariah , dengan menggunakan teknik purposive sampling dengan kriteria tertentu untuk mengambil sampel Bank Umum Syariah yang akan dteliti. Metode analisis menggunakan regresi data panel. Hasil penelitian ini dengan menggunakan empat model regresi menunjukkan hasil bahwa : (1) IC dengan model iB-VAIC berpnegaruh postif signifikan dengan ROA dan ROE. (2) Komponen IC iB-VACA,iB-VAHU dan iB-STVA berpengaruh positif signifikan dengan ROA dan ROE.(3) Sedangkan pengungkapan modal intelektual atau ICD menunjukkan hasil yang tidak signifikan terhadap ROA dan ROE. Kata kunci : Kinerja Keuangan, iB-VAIC (islamic bank - valuie added intellectual capital), iB-VACA (Vallue Added Capital Employed), iB-VAHU (Vallue Added Human Capital ) dan iB-STVA ( Structure Capital Vallue Added ABSTRACTIntellectual Capital recognized by experts as intangible assets capable of creating added value and increasing competitiveness for a corporation. The purpose of this research is to analyze the influence or relationship between intellectual capital (IC) and intellectual capital disclosure (ICD) on the financial performance of Islamic banking in Indonesia. The IC engraving model uses the modeliB-VAIC (Islamic bank-value added intellectual capital) with components (1) iB-VACA (Vallue Added Capital Employed), (2) iB-VAHU (Vallue Added Human Capital) and (3) iB-STVA (Structure Capital Vallue Added). Proxies for measuring financial performance use ROA (Return On Assets) and ROE (Return On Equity). The samples in this study were 10 Sharia Commercial Banks, using purposive sampling techniques with certain criteria to take samples of Sharia Commercial Banks to be studied. The method of analysis uses panel data regression. The results of this study using four regression models showed the results that: (1) IC with a model that has a significant positive effect on ROA and ROE. (2) The IC component iB-VAICiB-VACA,iB-VAHU dan iB-STVA has a significant positive effect on ROA and ROE (3) While the disclosure of intellectual capital or ICD shows insignificant results on ROA and ROE.Keywords: Financial Performance, iB-VAIC (Islamic bank - value added intellectual capital), iB-VACA (Vallue Added Capital Employed), iB-VAHU (Vallue Added Human Capital) and iB-STVA (Structure Capital Value Added)
48
Deniswara, Kevin, Ratu Marwaah Firhatil Uyuun, Ang Swat Lin Lindawati, and Willnaldo Willnaldo. "Intellectual Capital Effect, Financial Performance, and Firm Value: An Empirical Evidence from Real Estate Firm, in Indonesia." Winners 20, no. 1 (May 24, 2019): 49. http://dx.doi.org/10.21512/tw.v20i1.5500.
Full textAbstract:
This research aimed to analyze the impact of intellectual capital towards the firm’s financial performance and firm’s value. Intellectual capital was measured by Value Added Intellectual Capital (VAIC) which has three components, such as Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). Firm’s financial performance and firm’s value were measured by Return on Assets (ROA), Return on Equity (ROE), Revenue Growth (RG), and Tobin’s Q ratio. There were 102 observations of Property and Real Estate company sector listed in Indonesia Stock Exchange period 2014-2016 that was analyzed using the linear regression method. The results show that VAIC has a significant impact towards financial performance and firm’s value, except revenue growth, which means that the firm’s ability to generate value added and also profit with total assets and equity increase if IC is managed properly. Therefore, VACA is the only component of VAIC that has a significant impact towards financial performance and firm’s value, except RG which means that the capital employed is already managed properly.
49
Chytis, Evangelos, Stergios Tasios, Ioannis Georgopoulos, and Zois Hortis. "The relationship between tax avoidance, company characteristics and corporate governance: Evidence from Greece." Corporate Ownership and Control 16, no. 4 (2019): 77–86. http://dx.doi.org/10.22495/cocv16i4art7.
Full textAbstract:
The purpose of this paper is to research a possible relationship between corporate tax avoidance with corporate governance characteristics such as board independence, the type of auditing company and the concentration of ownership, and a range of selected financial indicators such as return on capital employed, liquidity, leverage, and company size. For this reason, the analysis was based on quantitative and qualitative data derived from the annual financial reports from a sample of 56 companies listed on the Athens Stock Exchange covering the period 2011 to 2015. As a measure of tax avoidance, the cash effective tax rate was used, while a linear regression model using the random effect method was estimated in order to examine the factors that affect it. The results of the study show that the cash effective tax rate has a statistically significant positive relationship with company size and a significant negative relationship with return on capital employed. All in all, the research shows that Greek large-sized companies show less tax avoidance, whereas in companies with a high return on capital employed the extent of tax avoidance is higher. There was no statistically significant impact of corporate governance variables on tax avoidance.
50
Salehi, Mahdi. "The Relation of Working Capital and Fixed Assets: a Study." Folia Oeconomica Stetinensia 11, no. 1 (January 1, 2012): 47–60. http://dx.doi.org/10.2478/v10031-012-0001-1.
Full textAbstract:
Abstract The present study aims to investigate the relationship between working capital changes and fixed assets with asset return of 120 manufacturing listed companies in Tehran Stock Exchange during 2006-2010. Pearson correlation and Regression test are employed to determine the kind of relationship between dependent and independent variables, hypotheses test and evaluating normality of data respectively. The outcomes of the study suggest that there is a significant relationship between working capital changes and fixed assets with assets return in the research community.