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This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.
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The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies;(2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value;(2) profitability has a positive significant effect on firm value;(3) dividend payment has no significant effect on firm value;(4) inflation has a negative significant effect on firm value;(5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.
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Businesses should come up with a strategy, plans, and goals so that their total assets can make a profit during the transformation process. Utilizing various features of a property can generate this income. This comparison provides evidence of profitability. During the global economic downturn, a number of businesses encountered issues that caused their payment situations and profitability to deteriorate. The goal of this article is to ascertain whether particular profitability indicators also revealed the pandemic-related global crisis, particularly in the Visegrad Group countries. This analysis was conducted based on categories of business size. Specifically, 8671 enterprises were analyzed. The evaluation of indicators revealed whether there was a significant change in a negative direction, a significant change in a positive direction, or no significant change. It was possible to make a clear diagram of the companies that took part in the study and to figure out the median values in order to compare the results of the chosen profitability indicators. Correspondence analysis was conducted so that conclusions could be more accurate. According to the findings of this study, indicators of ROA, ROE, and ROS did not change significantly across enterprise size categories in the years preceding, during, and after the pandemic. Since the government regulations of the V4 countries had a significant impact on these businesses, the change was most obvious in the case of small businesses within the ROS indicator. The added value of the article is derived from its analysis of selected profitability indicators in the largest group of Central European nations and its relevance.
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The article presents the annual report of the Southern Historical Association secretary-treasurer about the workings of the association amid the Covid-19 pandemic. Topics include the return of the association to in-person meeting in November 2022 after holding virtual meetings in 2020 and 2021 due to Covid, several innovations showcased at the 2022 meeting such as a mentoring match-up program, the association's support for history education, and its profit and loss from January-December 2022.
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PurposeIndonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs.Design/methodology/approachThis research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme.FindingsThe findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance.Originality/valueThe novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development;those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.
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This paper investigates the divergence between the objectives of the state in ensuring citizens' right to health and the profit-maximization objective of pharmaceutical corporations in relation to, access to, and supply of medicine. This divergence is pertinent given both the rising cost of medicines and unmet needs, particularly in developing countries. This paper analyses the correlation between pharmaceutical corporations' profit drive and the state's welfare obligation. There is a need to bridge the gap between business and human rights, which can be achieved by combining the concepts of "business ethical responsibility" and corporations' contributions to "common good" with the jurisprudence on the right to health. This is imperative in view of the impact of the business of pharmaceutical corporations on vulnerable populations, particularly in, but not limited to, developing countries.
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In striving to slow the spread of the COVID-19 pandemic, governments across the globe acted quickly to implement various "stay-at- home" orders and bans on all "non-essential activities." While these actions were likely effective in slowing the spread of the virus, the economic impacts were felt almost immediately. The US deficit rose to $3.1 trillion following massive spending to aid individuals and small businesses. Internationally, governments have been increasing their debt loads to combat both the health and financial impacts of the pandemic. Indeed, by the end of 2020, the international debt load increased to a record-breaking $281 trillion. Almost as quickly, various proposals have been offered regarding how to mitigate this pandemic-fueled deficit. One solution offered is the return of a historical tax scheme-an excess profits tax. Excess profits taxes have historically been applied both domestically and internationally during times of war. Although there are variations in how an excess profits tax is calculated, traditionally, an excess profits tax is applied to those companies who earn returns in excess of a set "normal" rate of return.
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In a market economy, one of main goals for every company is to maximize the wealth of the shareholders, which is a result of maximizing the market value of the company. There are various profitability measures for company, butfrom ownership perspective most used measure of profitability is Return on equity (ROE) ratio. This ratio relates to the earnings left over for equity investors after debt service costs for company has been deducted from total capital invested in the asset. Numerous studies have been conducted with numerous factors examined to determine factors that have impact on business performance. In this paper, the authors intention was to explore studies so far done on profitability of companies and to find an area that hadn't been yet examined, and to give substantiation ofprofitability determinants grounded on dynamic panel data. For this purpose, this paper explored variables that have impact on profitability of companies whose shares were most traded on Zagreb stock exchange (one of criteria for share to be included in market index). Variables included in research are: Net Financial Debt (NFD)/ EBITDA ratio, yearly revenue percent change, Enterprise Value (EV)/ EBITDA ratio, dividend yield, operating margin ratio, debt to equity ratio and current liquidity ratio. Analysis was done on data of companies included in the official stock index of the Zagreb stock exchange, Crobex from 2010 to 2019 (before Covid-19 pandemic). The data was taken from the Thomson Reuters database where all data for selected companies necessary for this paper were collected.
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We empirically examine the influence of corporate responsibility spending on manufacturing enterprises domiciled in India. Furthermore, the study scrutinizes the influence that the onset of the Covid-19 posed on these enterprises. The variables considered for this purpose are spanning from 2014 to 2020 which have been extracted from the prowess IQ repository. The investigation designates earnings after taxation as a dependent variable;corporate social responsibility is the independent variable;leverage and enterprise's size as control variables. Evaluation of the data relies on the fixed effect regression approach. The outcome established that CSR spending positively and significantly influences earnings after taxation, whereas a negligible relationship was noted for the return on assets of the enterprises. Lastly, the outcome identified that leverage places a negative significant influence on the enterprises' earnings after taxation and return on assets.
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Drawing from the extremely novel impact investing landscape and the limited existing literature on the topic, it appears that investing in social enterprises should come at the cost of partially sacrificing financial returns to invested capital. This paper investigates the existence of this tradeoff by assessing how the performance of impact investing funds compares to that of traditional private equity and venture capital operators. Focusing on portfolio firm operating performance, we construct a dataset of 85 impact-investing observations and 5310 traditional observations over the period ranging from 2009 to 2020, in order to compare the performance of the traditional investor-backed firms with those of sustainable companies participated by social impact investors. Advanced matching methods such as Radius and Kernel matching suggest that the composition of the shareholding structure significantly affects the profitability of the company, with traditional firms outperforming their socially-concerned counterparts. Looking instead within the subsample of impact investor portfolio companies, and focusing only on the post-investment observations, we analyze how the percentage owned by the impact investors impacts the performance of the owned companies. The results show that, similarly to traditional ownership, a greater share controlled by impact investors leads to higher returns.
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The head of global financial reporting policy at the CFA Institute, Sandy Peters, warns that financial statement users should exercise significant skepticism of management's methods, techniques, and potential creativity in reporting results, following COVID-19 (Bary, 2020). During extraordinary times, the role of professional judgment and discretion becomes more pronounced, as management is forced to make projections with limited precedent. [...]some experts predict that management may be overly generous in their bad debt reserves (V. Burca, D. Mates, O. Bogdan, "Exemplifying the Effect of Big Bath Accounting in the Pandemic," Ceccar Business Review, The Body of Expert and Licensed Accountants of Romania, https://doi.org/10.37945/cbr.2021.02.01, February 1, 2021). Many employees have embraced remote work and have no intention of ever permanently returning to the office. [...]companies looking to lower overhead and administrative costs may be looking for smaller office buildings or locations where space sharing can be optimized. Many holders of lease agreements and long-term contracts will be looking to negotiate new terms, if they have not already. Because the market impact remains unclear, estimating losses with any degree of accuracy could
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The paper showcases the analysis of the financial statements on Jindal Steel & Power Ltd which gives the inputs about the performance of the company. To support the study, Ratio analysis is used to focus on the financials of the company. As the financial analysis of any firm helps to understand the health of the company for this accounting ratios are studied to demonstrate the changes in the financials of the company because it is the useful tool for management, shareholders, financiers etc. Data was collected and used from Annual Reports of Jindal Steel & Power Ltd from the period of 2016-17 to 2020-21. The findings of the paper's financial study of Jindal Steel & Power Ltd. show that the company's financial performance increased after 2016-17 without taking the COVID-19 pandemic condition into account.
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In today's business world of great competition, all companies must strategically plan their growth, development, improvement of business processes and reduction of current costs to achieve the highest possible income and, consequently, profit. Strategic innovation is a sector that requires IT assistance in identifying new development prospects. To reduce the risk of new ventures, every company requires corporate-wide digital and analytics capabilities. Providing management with the correct data at the right time to improve decision-making processes is an approach to cut expenses because it not only saves time and money but also protects your company from the costly consequences of bad investment decisions. Initiatives for digital transformation are frequently performed to stay up with changing market needs, boost team productivity, or provide better customer experiences. The goal of digital transformation is to change the way business is done, including how to be more successful and efficient. This entails strategically planning how to leverage technology to facilitate the achievement of overall corporate goals and objectives. This paper was created with the intention of presenting digital transformation usage through the case study to improve the process of displaying prices and other informative content to end customers. Additionally, it reduces cost which means replacing the traditional display of product information on paper with digitization of prices using a screen that can be controlled locally and remotely via an internet connection. Following all the above, the initial development is ultimately acceptable according to the financial structure, and in the period of exploitation, it achieves financial profit, which is the most important feature of the project with direct economic effect.
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Performanţa financiară a unei societăţi comerciale este dependentă de o multitudine de factori, care pot fi grupaţi în factori de natură externă şi factori de natură internă. Prin studiul desfăşurat am încercat să analizăm influenţa unor factori externi specifici perioadei de pandemie COVID -19 asupra performanţei financiare a unor societăţi comerciale din domeniul fabricării produselor farmaceutice de bază din România (Antibiotice), a preparatelor farmaceutice (Biofarm, Zentiva) a activităţi de asistenţă medicală ambulatorie (Med Life). Aceste societăţi comerciale s-au confruntat cu condiţiile perioadei pandemice COVID-19, cu măsurile luate în acest sens, precum şi cu concurenţa acerbă din partea unor producători internaţionali (Sanofi, Sandoz Romania, Hoffmann la Roche, Pfizer etc. ). Astfel, unele societăţi comerciale din domeniul fabricării produselor farmaceutice şi-au redus volumul de activitate, iar altele au înregistrat o performanţă mult superioară perioadei prepandemice.Alternate :The financial performance of a commercial company is dependent on a multitude offactors, which can be grouped into external factors and internal factors. Through the conducted study, we tried to analyze the influence of external factors specific to the period of the COVID-19 pandemic, on the financial performance of some commercial companies in the field of manufacturing pharmaceutical products in Romania (Antibiotice) pharmaceutical preparations (Biofarm, Zentiva) ambulatory healthcare activity (Med Life). These commercial companies faced the conditions of the COVID-19 pandemic period, the measures taken in this regard, as well as the fierce competition from some international manufacturers (Sanofi, Sandoz Romania, Hoffmann la Roche, Pfizer, etc.). Thus, some commercial companies in the field of manufacturing pharmaceutical products have reduced their volume of activity and others have performed much higher than the pre-pandemic period.
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Purpose: The purpose of this research is to analyze the effect of internal control and financial distress on earnings management and add the CEO's reputation as a moderating variable. The object of this study is to determine the companies that listed on Indonesia Stock Exchanges between 2019 and 2020. The research data were tested and analyzed using panel regression analysis on SmartPLS software. Methodology: The research sample is chosen using the purposive sampling technique. Data analysis for the study employed the SmartPLS program. This research used accrual earnings management to measure the earnings management, springate model to measure financial distress, internal control index to measure internal control and CEO's reputation index is used to measure CEO's reputation. Findings: The research results found that financial distress and internal control positively affect earnings management. In addition, this research results also found that a CEO's reputation can have a moderately significant and positive effect on the relationship between financial distress and earnings management. Originality/Value: This research finding is helpful for corporate governance in maximizing investment strategies. The consideration of the value of internal control is also a reference when investing. As such, it tends to assist company management in executing investment strategies to see the value of the CEO's reputation and internal controls. The novelty research provides new insight into how CEO's reputation moderates the relationship between financial distress and earning management.
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The purpose of this study is to examine the differences in the value of the financial distress of manufacturing companies before and after the Covid-19 pandemic, as well as to examine the determinants that affect the financial distress of manufacturing companies before and after the Covid-19 pandemic. This study is a quantitative study with the population in this study namely manufacturing companies in Indonesia. The sample is 1005 Firm Years in manufacturing companies in Indonesia. These Manufacturing Companies were taken from 2016-2021, but we divided the sample into 2 categories, namely 2016-2019, namely in the pre-pandemic period as many as 653 firm years, and during the pandemic as many as 352firm years. The dependent variable used in this study is financial distress, measured by the O-Score Model. Furthermore, the independent variables are profitability using ROA, liquidity using the current ratio, and leverage using the Debt to Assets Ratio. The test results show no difference between the financial distress of manufacturing companies in Indonesia before and during the pandemic. During the pandemic, financial ratios became more considered in predicting financial distress than before the pandemic. The role ofprofitability is a factor that impacts financial distress is more impactful in the pre-pandemic period. The role of liquidity being a factor that impacts financial distress is more impactful during the pandemic. Leverage can also be a good indicator in predicting financial distress both in the pre-pandemic and during the pandemic.
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The COVID-19 pandemic has negatively impacted the performance of pharmaceutical companies and must be addressed appropriately. This study aims to determine how digital organizational culture, digital capability, and digital innovation impact organizational performance. The partial least squares structural equation modeling (PLS-SEM) was utilized to analyze the data obtained from 238 respondents affiliated with Indonesian pharmaceutical state-owned enterprises (SOEs). The results of this study suggest that while digital organizational culture does not directly affect organizational performance, it does so indirectly through digital innovation, which acts as a mediating variable. Second, digital capability affects organizational performance directly as well as indirectly through digital innovation. This study empirically provides confirmation of how organizational performance is achieved in pharmaceutical companies, especially during the COVID-19 era. In addition, the findings show some substantial implications for management by focusing on digital organizational culture and digital capability as fundamental predictors of organizational performance through digital innovation.Alternate :Pandemik COVID-19 telah menjejaskan prestasi syarikat farmaseutikal secara negatif dan mesti ditangani dengan sewajarnya. Kajian ini bertujuan untuk menentukan bagaimana budaya organisasi digital, keupayaan digital, dan inovasi digital mempengaruhi prestasi organisasi. Pemodelan persamaan struktur kuasa dua terkecil separa (PLS-SEM) digunakan untuk menganalisis data yang diperoleh daripada 238 responden yang bergabung dengan syarikat berkaitan kerajaan (GLC) farmaseutikal Indonesia. Hasil kajian ini menunjukkan bahawa walaupun budaya organisasi digital tidak secara langsung mempengaruhi prestasi organisasi, ia melakukannya secara tidak langsung melalui inovasi digital, yang bertindak sebagai pembolehubah pengantara. Kedua, keupayaan digital mempengaruhi prestasi organisasi secara langsung dan juga tidak langsung melalui inovasi digital. Kajian ini secara empirikai memberikan pengesahan tentang bagaimana prestasi organisasi dicapai dalam syarikat farmaseutikal, terutamanya semasa era COVID-19. Di samping itu, penemuan menunjukkan beberapa implikasi yang besar untuk pengurusan dengan memberi tumpuan kepada budaya organisasi digital dan keupayaan digital sebagai peramai asas prestasi organisasi melalui inovasi digital.
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The Covid-19 crisis provided an opportunity to generate excess returns as stocks were trading below their fair value. The first infection case was reported in November 2019, and a sharp fall in global markets was witnessed soon thereafter. Though markets gradually recovered from their respective lows, its impact was felt across major parts of the globe till early 2021. The paper analyzes the efficiency of 44 world major stock exchanges (Asia-Pacific-17, Europe-16, America-6 and Africa-5) for 15 months (November 2019 to January 2021), and tests whether markets move randomly or whether they are adaptive in nature, i.e., whether Efficient Market Hypothesis (EMH) or Adaptive Market Hypothesis (AMH) holds good in such conditions. The results of Hurst exponent and Variance Test (VT) ratio prove that markets are adaptive.
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The recent spate of global crises, including Covid-19 pandemic, Russia-Ukraine war and. the Sri Lankan crisis, have hindered the economic growth of almost all nations. The prevailing economic downturn has forced many organizations to assess their financial future and the possibility of financial distress. Financial distress is detrimental to all types of organizations and it is always advisable to avoid it because it creates a tendency for firms to do things that are not in favor of debt holders and non-financial stakeholders, impairing access to credit and deteriorating stakeholder relationships. The objective of this study is to predict the financial distress of firms by analyzing their liquidity position over a period of time and by assessing their working capital management strategy. The purpose is clear: the sooner the detection, the easier it will be for companies to take various preventive measures. If it is possible to find out the situation well in advance, appropriate action can be taken to reverse the process before it is too late. The present study is an attempt to determine the possibility of financial distress in sample companies by analyzing their performance using various financial and statistical techniques. It was conducted by taking a sample of ten Indian steel companies for the period 2017-18 to 2021-22. The data has been analyzed using various financial ratios related to profitability, liquidity, solvency and Motaal's Liquidity Assessment Test and Spearman's Rank Coefficient of Correlation to find out whether companies are compromising their liquidity to increase profitability. The findings show that among the ten selected companies, NMDC has the best liquidity situation and is least prone to facing financial distress.