scholarly journals Utjecaj financijskog trenja na razvoj i opstanak srednjih poduzeća u Republici Hrvatskoj

2021 ◽  
Vol 11 (1) ◽  
pp. 31-50
Author(s):  
Sonja Brlečić Valčić
Keyword(s):  
Interest Rates ◽  
Financial Analysis ◽  
Capital Inflows ◽  
Financial Friction ◽  
Sustainable Business ◽  
Return On Equity ◽  
Return On Capital ◽  
Equity Ratio ◽  
Definition Of ◽  
The Impact

Financial friction as a link between the return on financial capital, i.e. return on capital and assets, the cost of capital paid by companies, and the amount that investors earn from financial requirements, is rarely used in economic theory and introduced into financial analysis policy, mainly by monetary authorities. Previous research on this topic has indicated the need to introduce such models in financial analysis, mainly for the purpose of examining the need to increase available capital inflows at acceptable rates. This paper proposes a different approach to this problem, i.e. on the sample of financial data for 5 business years of 50 medium-sized Croatian companies, using models based on ANFIS, the impact of financial friction on the development potential of companies has been analysed. In the definition of the model, the variables such as return on assets (ROA), return on equity (ROE), equity ratio, indebtedness ratio and EBITDA margin were used. The conducted analysis can serve entrepreneurs in finding the optimal ratio of financial leverage for sustainable business focused on development strategies, but also policy makers in defining the need to subsidize interest rates on business loans.

scholarly journals Does Financial Performance Matter? Evidence on the Impact of Liquidity and Firm Size on Stock Return in Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 546
Author(s):  
Mochammad Chabachib ◽  
Ike Setyaningrum ◽  
Hersugondo Hersugondo ◽  
Intan Shaferi ◽  
Imang Dapit Pamungkas
Keyword(s):  
Stock Returns ◽  
Firm Size ◽  
Significant Relationship ◽  
Stock Return ◽  
Stock Exchange ◽  
Mediating Effect ◽  
Return On Equity ◽  
Stock Investment ◽  
Equity Ratio ◽  
The Impact

In the modern era, stock investment can attract domestic investors or foreign investors. The objective is to invest their funds at the capital market that expect higher stock returns. The study aims to analyze factors that can affect stock returns and know the mediating effect of return on equity. The object of this research is the property and real estate sector that is listed on the Indonesia Stock Exchange from 2013 to 2018. This research used debt to equity ratio, current ratio, total asset turnover, firm size as independent variables and stock returns as dependent variables. Path analysis is used as reseach method tools with SMART PLS.The result says that debt to equity ratio and return on equity has a positive significant relationship with stock return, meanwhile firm size has a significant negative significant relationship with stock returns. Furthermore, return on equity can mediate the relationship between debt and equity ratios to stock returns.

scholarly journals The Role of Operational Risk Management in Performance of Banking Sector: A Study on Conventional & Islamic Banks of Pakistan

2018 ◽  
Vol 6 (1) ◽  
pp. 1-16
Author(s):  
Muhammad Yasran Rasheed ◽  
Asif Saeed ◽  
Ammar Ali Gull
Keyword(s):  
Financial Institutions ◽  
Asset Management ◽  
Banking Sector ◽  
Operational Risk ◽  
Risk Disclosure ◽  
Return On Equity ◽  
Equity Ratio ◽  
Ratio Spread ◽  
Operational Activities ◽  
The Impact

Operational risk has a great impact on the functions of financial institutions. As the complexity and size of firms in increasing, it also enhancing the operations risk in more harmful ways. If a firm is not able to perform its operational activities properly, then it is not possible for banks to get high profitability ratio. Firstly, the operational risk has not achieved the greater importance but with the passage of times all financial institutions have come to know that it is very important for all institutions to cover up the rate of risk in financial operations. By selecting 15 banks (Islamic & Commercial Banks) from the year 2007 to 2011 focused on the internal factors of the banks which are mostly affected by the operational risk. Regression and correlation methods are used to evaluate the impact of Return on Asset, Debt/Equity Ratio, Spread Ratio, Capital Ratio and Asset management on the Return on Equity. The empirical results are shown that the awareness regarding operations risk has greater impact on the management of operational risk. Results are also shown that the operational risk disclosure also vary among different banks.

scholarly journals Analisis Kebijakan Penyertaan Modal Pemerintah Daerah Terhadap Kinerja Perusahaan Umum Daerah Air Minum Pancuran Telago Kabupaten Bungo

Media Ekonomi ◽  
2021 ◽  
pp. 19
Author(s):  
Sri Wineh
Keyword(s):  
Local Government ◽  
Water Supply ◽  
Quantitative Methods ◽  
Company Performance ◽  
Return On Equity ◽  
Analysis Technique ◽  
Equity Ratio ◽  
Data Collection Technique ◽  
Water Supply Company ◽  
The Impact

This study aims to determine how much the equity participation of the Local Government in Telago Pancuran Water Supply Company and to determine the impact of the local goverment capital participation on the performance of the Telago Pancuran Water Supply Company. The object of research is the Telago Pancuran Water Supply Company, with a research period of five years, namely 2015 to 2019. The data collection technique uses observation, interview and documentation methods. The data analysis technique in this research uses quantitative methods using financial performance formulas, Return on Equity, operating ratios, cash ratios and billing effectiveness. The results of this study indicate that the amount of equity participation of the local Government to the Telago Pancuran Water Company continues to increase until 2016, for 2017 to 2019 it has decreased. Meanwhile, the impact of equity participation on company performance can be seen in the Return on Equity ratio, operating ratio, cash ratio for collection effectiveness.

scholarly journals Monetary Policy Surprises over Time

2018 ◽  
Vol 08 (01) ◽  
pp. 1840002 ◽  
Author(s):  
Marcello Pericoli ◽  
Giovanni Veronese
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Euro Area ◽  
Yield Curve ◽  
Sovereign Spreads ◽  
Definition Of ◽  
Term Premia ◽  
The Impact ◽  
Over Time

We document how the impact of monetary surprises on euro-area and US financial markets has changed from 1999 to date. We use a definition of monetary policy surprises, which singles out movements in the long-end of the yield curve — rather than those changing nearby futures on the central bank reference rates. By focusing only on this component of monetary policy, our results are more comparable over time. We find a hump-shaped response of the yield curve to monetary policy surprises, both in the pre-crisis period and since 2013. During the crisis years, Fed path-surprises, largely through their effect on term premia, account for the impact on interest rates, which is found to be increasing in tenor. In the euro area, the path-surprises reflect the shifts in sovereign spreads, and have a large impact on the entire constellation of interest rates, exchange rates and equity markets.

scholarly journals Predicting Stock Return of UAE Listed Companies Using Financial Ratios

2019 ◽  
Vol 8 (2) ◽  
pp. 214
Author(s):  
Arindam Banerjee
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Share Price ◽  
Financial Ratios ◽  
P Value ◽  
Dividend Yield ◽  
Value Analysis ◽  
Return On Equity ◽  
Equity Ratio ◽  
The Impact

Over the past few decades, numerous research across the globe has been conducted to examine the impact of firm performance on its stock return. The findings of these studies have been varied. In spite of the long standing research in this area, several attempt towards exploring this relationship has led to limited success owing largely to the existence of volatility across different stock markets. The variance in the volatility in these markets make it extremely difficult to obtain a uniform measure. A volatile stock market makes it difficult for the accounting and financial variables to accurately predict the stock returns (Feris & Erin, 2018).  The primary aim of this paper is aimed to investigate whether financial ratios can be used as a predictor of stock returns in the context of United Arab Emirates (UAE). The sample of the study includes thirty companies from the Dubai Financial Market (DFM) and Abu Dhabi stock exchange (ADX). Data is collected for the period of 2017. This research comprises of five independent variables namely, Earning Per Share ratio (EPS), Price Earning ratio (PE), Return on Equity ratio (ROE), Dividend Yield ratio (DY) and Debt Equity ratio (DE) and stock return is taken as the dependent variable. The study examines which among the given ratios can better predict stock returns both in the short run and the long run. The analysis is based on the regression analysis and correlation matrix. The results of correlation test revealed less multicollinearity between the variables and the regression results showed that Dividend Yield and the Return on Equity are statistically significant to predict the stock returns. However, Earning Per Share, Price Earning and Debt Equity could not predict the stock returns and thus can be safely considered as statistically insignificant. The t-stats test and p-value analysis were key indicators for arriving at the conclusion. The study can significantly benefit investors who can examine closely the dividend yield and return on equity while selecting an optimal portfolio. 

scholarly journals CAPITAL STRUCTURE AS DETERMINANT OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA (A CASE STUDY ON PRIVATE BANKS IN ETHIOPIA)

2021 ◽  
Vol 9 (03) ◽  
pp. 216-231
Author(s):  
Taddesse Shiferaw Deneke ◽  
◽  
Tripti Gujral ◽  
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Commercial Banks ◽  
Empirical Relationship ◽  
Asset Return ◽  
Return On Equity ◽  
Net Profit ◽  
Return On Capital ◽  
The Impact ◽  
The Capital Structure

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.

scholarly journals Effect of COVID-19 on Dupont based financial performance of three Nationalized Petroleum Companies in India

YMER Digital ◽  
2021 ◽  
Vol 20 (10) ◽  
pp. 44-48
Author(s):  
Mukund S ◽  
◽  
Dr.N Arunsankar ◽  
Keyword(s):  
Financial Performance ◽  
Investment Decision ◽  
Profit Maximization ◽  
Good Tool ◽  
Return On Equity ◽  
Wealth Maximization ◽  
Dupont Analysis ◽  
Return On Capital ◽  
Petroleum Company ◽  
The Impact

: Every company has two major objectives in terms of profitability. i.e. Profit Maximization and Shareholders’ Wealth Maximization. Ratio analysis is a good tool which fosters the utilization of company figures to make proper investment decision for various classes of investors and management for taking right decisions at right time. ROE (Return on Equity) comes into the picture in terms of measuring the wealth maximization. It is basically a composition of ROCE or Return on Capital Employed. American paint manufacturing company named DuPont invented DuPont model of ROE analysis. It basically talks about the key factors contributing the return on equity. It can be used to analyze the return in any industry. In this study, we studied the impact of COVID-19 pandemic in their financial performance using DuPont analysis of the three Nationalized Petroleum company including BPCL, HPCL & Indian Oil Corporation.

scholarly journals Comparability of financial statements prepared according to IFRS and IFRS for SMEs in the field of intangible assets

2010 ◽  
Vol 58 (6) ◽  
pp. 67-78 ◽  
Author(s):  
Hana Bohušová ◽  
Patrik Svoboda
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Important Field ◽  
Definition Of ◽  
The Impact

IFRS for SMEs were adopted in July 2009 as a result of efforts to harmonize financial reporting for SMEs. These standards are based on the same principles as full standards. The aim is, compared to full IFRS reporting of these businesses, to significantly simplify, mainly from the reason that the strict application of the principles of the full standards does not excessively financially and administratively burden smaller accounting entity. Field of identifying, recording and reporting of intangible assets except goodwill is an important field in which the methodology is substantially different. In the pre­sent paper there is documented on the example the impact of different methods for recording of internally generated intangible assets in the both systems into balance sheet and profit or loss and into the selected indicators of financial analysis. Definition of issues that may arise during the transition from the IFRS for SMEs to full IFRS and vice versa, in the context of drafting the opening balance sheet is another field to which the paper is dedicated.

The Impact of Foreign Capital Inflow on Savings and Investment: The Case of Pakistan

1987 ◽  
Vol 26 (4) ◽  
pp. 787-789 ◽  
Author(s):  
Naheed Aslam
Keyword(s):  
Interest Rates ◽  
Foreign Capital ◽  
Capital Inflow ◽  
Capital Inflows ◽  
Foreign Assistance ◽  
Domestic Capital ◽  
Foreign Loans ◽  
Foreign Capital Inflows ◽  
The Impact ◽  
Over Time

The paper examines the role of foreign capital in the context of savings and investment for Pakistan for the period of 1963-64 - 1984-85. The question of the impact of foreign capital inflows on domestic resources has assumed primary importance in view of the increasing debt burden and declining concessionality of foreign loans. The data analysis! , based on the classification of loans according to rates of interest and terms to maturity, reveals that the terms and conditions of foreign loans have become more stringent over time, i.e. higher interest rates and lower maturity periods. The worsening terms and conditions of external loans have resulted in increasing reverse flow obligations. Debt servicing as a ratio of export earnings and foreign capital inflow has rapidly increased over time. During 1960-61 - 1970-71, debt-servicing obligations could be met from 14.85 percent of foreign assistance or 10.29 percent of our commodity export earnings, whereas during 1980-81 - 1984-85 foreign debt servicing could be financed from 29.63 percent of export earnings or 64.79 percent of foreign assistance. The heavy debt-servicing burden and unfavorable outlook for external finance has made it absolutely essential that foreign capital funds should generate internally the capacity to repay these loans. This could be facilitated if foreign capital inflows augment domestic capital formation efforts.

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