Global Production vs. Inventory Supply and Financial Performance: Evidence from Korean Multinational Firms

2016 ◽  
Vol 22 (1) ◽  
pp. 21-26
Author(s):  
Seungrae Lee ◽  
Seung Jae Park
Keyword(s):  
Financial Performance ◽  
Multinational Firms

scholarly journals International diversification and firm’s value: evidence from developing nations

2016 ◽  
Vol 26 (2) ◽  
pp. 166-183 ◽  
Author(s):  
A.N. Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Liza Wahid ◽  
Siti Abdullah
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Multinational Firms ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
International Diversification ◽  
Technological Advancement ◽  
Reverse Causality ◽  
Content Type ◽  
The Impact

Purpose This paper aims to evaluate the impact of international diversification, through the investment abroad activities of the Malaysian multinational corporations (MNCs), on their financial performance. Design/methodology/approach The paper applies the panel generalized method of moments (GMM) estimation technique that gives better results. Findings The empirical findings show that the move to invest abroad has brought a positive impact on Malaysian MNCs’ financial performance. However, in terms of a firm’s risk, the results contradict the general internationalization-risk hypothesis. Research limitations/implications The study focuses on the top 100 multinational firms; future researchers may extend the time period and use the entire sample of all the multinational firms. Practical implications Foreign investments offer rewarding returns due to cheaper labour and raw materials, competitive edge in terms of technological advancement and larger market opportunities. Originality/value The paper contributes to the literature using the panel GMM’s estimation that effectively control for reverse causality and serial correlation problem. The paper also contributes to the international diversification and performance relationship, in a fast-growing Malaysia.

scholarly journals The Effects of Foreign Market Entry Strategies on Financial Performance of Listed Multinational Firms in Kenya

2021 ◽  
Vol 6 (3) ◽  
pp. 216-225
Author(s):  
C. Smith ◽  
M. Ogutu ◽  
M. Munjuri ◽  
J. Kagwe
Keyword(s):  
Financial Performance ◽  
Market Entry ◽  
Multinational Firms ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Foreign Firms ◽  
Policy Makers ◽  
Entry Strategies ◽  
Internationalization Theory ◽  
Entry Strategy

The objective of this study was to establish the effects of foreign market entry strategies on the financial performance of listed multinational firms in Kenya. Internationalization theory was used as the theoretical foundation of the study. Empirical studies reviewed revealed that several studies had been done on the direct relationship between performance of multinational firms and their modes of entry into foreign firms. However, none of these studies focused on the financial performance of listed multinational firms. The study utilised a cross-sectional descriptive design. Secondary data collected from firms’ annual reports and financial statements for a period of four years (2014 to 2017) was used. The firms’ financial indicators of Sales Growth, Return on Equity, Return on Assets and Return on Capital Employed were employed to measure their performance. Franchising, exporting, wholly owned subsidiary and acquisitions were assessed as the entry strategies used by multinational firms. Data was collected from all the 62 listed multinational companies in Kenya and analysed using quantitative methods. This analysis was most preferred for data collected was quantitative in nature. The relationship between the independent and the dependent variable was tested using simple linear regression. The results show that the performance of multinational firms operating through franchises and as wholly owned subsidiaries as well as acquisitions was lower than the performance of multinationals operating as export companies. The study concludes that the mode of entry into foreign markets chosen by a firm significantly affected its financial performance in the said market. It is therefore recommended that multinational firms wishing to expand their operations globally to come up with long term strategies that have gone through rigorous scrutiny for the benefit of the firm. The study gave a contextual understanding of the internationalization theory. The theory managed to emphasize on reasons why multinational firms should expand their operations beyond their national boundaries. Actual ingredients for policy makers to undertake a well thought through policy formulation to fully understand the importance of choosing the right entry strategy was provided for in the results. Recommendations of the study are that a thorough marketing evaluation of the country of interest should be undertaken to ensure that proper measures are put in place for the selection of an entry strategy that will address the goals and objectives of a firm. The study also recommends that employees of a firm who are at the forefront in the internationalization process should be well informed and trained ahead of the firm’s plans. Policy makers and advisories in countries are advised to streamline the processes of foreign firms’ registration so to attract foreign investors.

scholarly journals The Influence of Firm Characteristics on the Relationship between Foreign Market Entry Strategies and Financial Performance of Listed Multinational Firms in Kenya

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
Christine Ooko ◽  
Martin Ogutu ◽  
Mercy Munjuri ◽  
Jeremiah Kagwe
Keyword(s):  
Financial Performance ◽  
Market Entry ◽  
Multinational Firms ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Firm Characteristics ◽  
Foreign Markets ◽  
Entry Strategies ◽  
The Right ◽  
The Relationship

The main objective of this study was to establish the influence of firm characteristics on the relationship between foreign market entry strategies and the financial performance of multinational firms in Kenya. The study was hinged on Resource-Based View as a theoretical foundation. The literature revealed that numerous studies had been conducted on the influencing factors of firm characteristics such as Size and Age on the financial performance of multinational firms. However, these studies did not put into consideration of other possible factors such as firm characteristics and indicators such as liquidity and leverage. More so, the studies did not consider firm characteristics as a possible influencer of the direct relationship between choice of entry strategies and financial performance of multinational firms. The study utilized a cross-sectional study design which adopted both analytical and descriptive type of studies. Secondary data was used to obtain the desired information from the multinational firms’ annual reports for the financial years 2017, 2016, 2015, and 2014. The study focused on only the publicly listed multinational firms in the Nairobi Security Exchange. Data were obtained from all the 62 listed firms. The study used Sales Growth, ROA, ROE, and ROCE to measure financial performance. Age, Liquidity, and Leverage were used as indicators of firm characteristics with leverage and liquidity further measured as Debt-Equity ratio and Current Assets Ratio respectively. Foreign market entry strategies were measured using Franchising, wholly-owned subsidiaries, Acquisition, and Joint Ventures. The results of the study showed that an interaction between firm characteristics and foreign market entry strategy significantly affected the direct relationship between foreign market entry strategies and the financial performance of multinational firms. The study concludes that firm characteristics have a positive effect on the financial performance of multinational firms through the influence of their choice of entry into foreign markets. It is recommended that multinational firms with desires to expand globally should use their global footprint to maximize on their international operations through leverage activities. In addition, policies governing the liquidity of companies to be revised in order to increase financial performance if previously they affected it. For the study was only limited to the publicly listed multinational institutions, future researchers should consider studying all the multinational firms operating in Kenya. The study provided a contextual understanding of the Resource-Based View. This theory tried to bring in views on choosing the right entry strategy into foreign markets based on the familiarity or unfamiliarity of a foreign market setting given the resources available to a firm. Findings also provided key ingredients for policymakers to embark on an integrated policy formulation in the full understanding of the interplay of a firm’s unique characteristics as far as multinational firms are concerned. And in practice, global business management should be in a better position to identify the right entry strategies into new markets that would yield them great financial profits.

A Study of Effect of NPAs on the Financial Performance of Public Sector Banks in India

PRODUCTIVITY ◽  
2019 ◽  
Vol 60 (1) ◽  
pp. 70-78
Author(s):  
PREETI . ◽  
◽  
Dr. Kuldip Singh Chhikara ◽  
Keyword(s):  
Public Sector ◽  
Financial Performance ◽  
Public Sector Banks

Pengaruh Kinerja Keuangan Dan Corporate Social Responsibility (CSR) Terhadap Nilai Perusahaan Perbankan Di Bursa Efek Indonesia

2018 ◽  
Vol 26 (1) ◽  
pp. 95-111
Author(s):  
Sulastiningsih Sulastiningsih ◽  
Rizka Imanita Sholihati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Firm Value ◽  
Research Method ◽  
Quantitative Research ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Corporate Social

This study aims to determine whether the financial performance measured by using CAR, ROA, LDR, BOPO, and CSR can affect the value of banking companies as measured by using PBV. This study uses secondary data taken from the annual report of banking companies during the year 2012-2016 listed on the Indonesia Stock Exchange. The number of samples of this study as many as 25 banking companies with a total of 125 data. This research method is quantitative research. The results of this study indicate the effect of CAR, ROA, LDR, BOPO, and CSR variables on firm value measured by using PBV in a banking company listed on the Indonesia Stock Exchange. Keywords: CAR, ROA, LDR, BOPO, CSR, PBV

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

Organizational and Financial Performance of Cooperatives in Misamis Occidental

2013 ◽  
Vol 1 (2) ◽  
pp. 33-38
Author(s):  
Wilson Nabua ◽  
◽  
Reynaldo Aleman ◽  
Marilou Abatayo ◽  
Edna dela Sierra ◽  
...  
Keyword(s):  
Financial Performance

ANALISA PERBANDINGAN LAPORAN KEUANGAN DAN RASIO KEUANGAN SEBAGAI ALAT UKUR KINERJA KEUANGAN PADA KOPERASI KARYAWAN SUCOFINDO (KOPERASI SUCOFINDO JAYA) TAHUN 2009 – 2011

2019 ◽  
Vol 9 (2) ◽  
pp. 35
Author(s):  
Sri Marti Pramudena
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Fiscal Year ◽  
Percentage Increase ◽  
Net Worth ◽  
Average Value ◽  
Financial Position ◽  
Profitability Analysis ◽  
Equity Ratio ◽  
The Cost

This study aims to determine the financial position and financial performance Cooperative Sucofindo Jaya (KOPSUCOFINDO JAYA) from fiscal year 2009-2011 through a comparative analysis / comparisons and ratio analysis. From the research, the authors obtained a picture that results of the financial position and financial performance of KOPSUCOFINDO JAYA as follows: (1) To Horizontal Analysis of the Balance Sheet shows the overall unfavorable developments as the rise of short-term debt experienced a greater percentage increase than the increase in current assets (2) For Horizontal Analysis of the SHU, SHU in 2010 an increase of 125.38% compared to 2009 and in 2011 increased by 282.47% compared to 2009, but this increase was not followed by a reduction in the burden of cost of goods, especially business and this increase was obtained from the contribution percentage increase in other income. (3) For Vertical Analysis of the Balance Sheet shows that in terms of assets, current assets are assets that make up the largest component but also cause considerable investment value embedded in current assets and also showed asset turnover, receivables turnover and working capital is very low under 1 times. (4) For the SHU Vertical analysis shows that income JAYA KOPSUCOFINDO more than 85% absorbed in the Cost of Goods. (5) For liquidity analysis showed that highly liquid KOPSUCOFINDO JAYA obtain an average value above 400%. (6) For solvency analysis shows that the performance is not good / not solvable because the results of the analysis LITA average of above 95%, Total Debt to Equity Ratio in the top 2.000%, and Net Worth Debt Ratio to average below 4%. (7) For activity ratios indicate that the performance is not good for Turnover of Assets value of 1 times. (8) For the rentability analysis KOPSUCOFINDO JAYA show results for ROA of 0.86% (2009), 1.31% (2010), 1.18% (2011), ROE in 2009 is 14.81%, 26.43% in 2010 and 2011 amounted to 31.11%, for the ROI of 0.56% in 2009, in 2010 was 0.96% and by 0.93% in 2011. (9) For the analysis of profitability, for the analysis of GPM in 2009 amounted to 1.49%, in 2010 of 2.31% and 3.92% in 2011. As for the analysis of NPM in 2009 amounted to 0.97%, in 2010 by 1.70% and by 3.10% in 2011. Keywords:  Cooperative Financial Performance, horizontal analysis, vertical analysis, Analysis of Liquidity, Solvency Analysis, Activity Analysis, Profitability Analysis, profitability analysis

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