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on Corporate Finance |
| By: | Chew, Hui Yen |
| Abstract: | Corporate governance is considered as a significant implication for the growth of company. Good corporate governance plays an important role in enhancing the performance of company. Hence, this study targets to determine the impact of Return on Assets (ROA) in relation with determinants towards the selected company’s performance and the name of the selected company in this study is Casio Computer Co., Ltd. (Casio) which is under the electronic industry in Japan. This analysis shows that firm-specific factors (current ratio, quick ratio, average-collection period, debt to income ratio, operational ratio, operating margin and corporate governance index CGI ) and the macroeconomic factors (Gross Domestic Product (GDP), inflation rate, interest rate, exchange rate and STDV of price change in the stock market) each has its significant, small significant or insignificant on return on assets (ROA) of Casio. This study suggests that Casio can perform well management and good corporate governance practices to maximize its revenue or profits for enhancing its corporate performance. |
| Keywords: | Corporate Governance, Return on Assets, firm-specific factors, macroeconomic factors, revenue, corporate performance, management and corporate governance practices. |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97348&r=all |
| By: | Abdul Latif, Nurul Atikah |
| Abstract: | This study is to investigate the relationship between liquidity risk with internal and external factors risk. This research is very important to the Target Corporation, it is because, they want to know their performance of the company such as the profitability, liquidity risk, operational risk, market risk, credit risk and also to know their corporate governance index. They also can make a planning if they know what kinds of things that will influence their performance of the company. So the problem is they can face a bankruptcy if they do not know what are influenced to their performance. |
| Keywords: | the profitability, liquidity risk, operational risk, market risk, credit risk and corporate governance index. |
| JEL: | G3 G32 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97222&r=all |
| By: | Lee, Mun Chen |
| Abstract: | Liquidity risk management is very important to every company to mange their company’s liquidity. The aim of this study attempts to investigate the firm-specific factor (internal factors), macroeconomic (external factors), and firm-specific factor, macroeconomic influence towards liquidity risk in Audi AG. The method of the study is regression analysis of Audi by using the SPSS Statistic 25 System. This study is based on annual report of 5 years, from 2014 to 2018. The liquidity risk of Audi AG show in the regression analysis has greater influence by operating ratio (firm-specific factor) in company and inflation rate (macroeconomic) in German. |
| Keywords: | liquidity risk, firm-specific factors, macroeconomics and corporate governance. |
| JEL: | G3 O16 |
| Date: | 2019–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97260&r=all |
| By: | Eric Lewis (U.S. Department of Justice); Randy Chugh (U.S. Department of Justice) |
| Abstract: | Starting with the pioneering work of Azar, Schmalz, and Tecu (2018), a rapidly growing body of empirical evidence on the effect of common ownership on market outcomes has emerged. However, testing the robustness of these results to alternative methods and data sources is just beginning. In this paper, we contribute to this growing body of work by comparing results based on two different data sources on institutional ownership: Thomson Reuters Spectrum (“SP”) and Thomson Reuters Ownership (“OP”). While SP is used by most researchers in this field, we find that OP has several distinct advantages including broader coverage and more convenient data formatting. We replicate the results of Azar, Schmalz, and Tecu (2018) and show that empirical results change dramatically when using OP instead of SP. We also find evidence that MHHI delta measures using OP data are more volatile than those using the SP data. |
| JEL: | D43 G23 G32 G34 L13 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:doj:eagpap:201901&r=all |
| By: | Lee, Jia Zet |
| Abstract: | This research is looking for the determinants that may affect the company performance in Nissan Motor Corporation in the automobile sector in Japan. The purpose of this study is to investigate the internal factors, external factors, and the combination of internal and external factors that may give an impact to the Nissan Motor Corporation company’s performance. The method used in obtained the results in this study is the statistical and regression techniques that check the significant level for the correlation of these factors. This study suggest the Nissan Motor Corporation should do well in managing and control their company performance by complies more towards the corporate governance elements such as accountability, transparency, independence, fairness, and sustainability. |
| Keywords: | Liquidity risk, operational risk, credit risk, market |
| JEL: | G3 G32 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97202&r=all |
| By: | Stella Mendes Carneiro; Marcio Issao Nakane |
| Abstract: | This paper explores the 2008–2009 Global Trade Collapse to estimate the effects of a credit supply shock on exporters’ investment decisions. Using a Brazilian firm-level dataset compiled by the Brazilian Internal Revenue Service (IRS) over the 2007–2013 period, we pair export-intensive firms with their domestically oriented counterparts. We subsequently calculate the differences in terms of the sensitivity of investment to cash flow between these two groups over the years. After controlling for the effect of international falling demand, our study reveals that exporters are more severely constrained than their peers in the control group only in 2009, when the supply of credit instruments to finance international trade decreased. Given their high need for external financing to support exporting activities and the volatility of the cost of trade finance, which is usually priced against the 3-month LIBOR, our results are in line with our expectations. A number of robustness and placebo tests confirm the validity of the findings. |
| Keywords: | credit constraints; international trade collapse; investment decisions |
| JEL: | G32 E22 E51 |
| Date: | 2020–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2020wpecon1&r=all |
| By: | YAN, SHIWEI |
| Abstract: | The aim of this study is to exam the relationship between the return on asset (ROA) and the internal, external factors of the companies.Kupiec, P. , & Lee, Y. (2012), stated that ROA is very useful statistic for comparing the profitability of banks. The companies I had chosen for this study are Bank of China.I collected this bank’s data from 2014 to 2018.The independent variables used for this study are current ratio,credit risk,operating margin,CGI, GDP,inflation, interest rate,and exchange rate, while the dependent variable is ROA. We used SPSS to analyse the statistics and the relationship between the dependent variable and the independent variables. |
| Keywords: | ROA, Bank of China,independent variables ,dependent variable |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97271&r=all |
| By: | Mohd Shafarin, Nur Aisyah |
| Abstract: | The study’s aim is an attempt to determine the liquidity risk of Home Depot Inc which involved two main factors of internal (firm-specific) and external (macroeconomics) factors. These data was interpreted and collected Home Depot annual reports of five year period from 2014 to 2018. There are four risks involved which are credit risk, operational risk, profitability, and market risk. Measurement of current ratio, quick ratio, average -collection period, debt to income ratio, operational ratio, and operating margin are used to examine the overall five years liquidity risk of Home Depot. Hence, to determine the relationship of these risk factors to the company’s liquidity risk, this study used profitability, credit risk, operational risk, market risk, gross domestic products (GDP), inflation, interest rate, exchange rate, BETA, and corporate governance index. SPSS system are used to do data analysis in which by implementing stepwise method which apply the descriptive statistics, correlation, and model summary. Based on the data analysis, we can conclude that operational risk is the most significant to CR since it gives the highest impact to liquidity risk of the company. Nonetheless, the other variables give low impact to the CR and there is no significant related with. |
| Keywords: | liquidity, operational risk, |
| JEL: | G3 G32 |
| Date: | 2019–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97203&r=all |
| By: | zhang, ying li lian |
| Abstract: | We used the SPSS system to perform regression analysis on Delta Air Lines. Through this research, it was found that Delta’s liquidity performance deteriorated year by year, which means its research. Regression analysis shows that Delta airlines liquidity risk is affected by asset return (internal factors) and US internal production growth (external factors). What is the most influential factor in corporate governance. |
| Keywords: | Profitability, Insolvency Risk, Macroeconomic |
| JEL: | G3 G32 |
| Date: | 2019–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97238&r=all |
| By: | Abdullah, Fara Izzatie |
| Abstract: | This paper aim to elaborate some most importance information regarding Coty Incorporation‘s performance and its determinant. This study been research from the company’s annual report and other trusted resources that relate to the company for year 2014- 2018. The purpose is to know what internal and external factor that affect the company performance or more specific dependable variable. The internal factor consist of current ratio, quick ratio, average collection period, debt to income, operational ratio, operating margin and corporate governance index. Meanwhile for the external factor include the GDP, inflation, interest change, exchange rate and standard deviation. The method that been used to collect data is Statistical Package for the Social Science (SPSS) version 25. Every company been running to increase sale and profit, same goes to Coty Incorporation. Hence, this study using Return of Ratio (ROA) method as its dependable variable to identify how well the company can convert its investment in asset into profit. This method the most efficiency to the management of company and the investor in that company to see it. The higher this ratio, the higher company will earn the profit. After been analysis and interpret the data in SPSS, the study found the internal factor which is Operating Margin give a strong influence to asset of Coty’s Incorporated. As already know, the operating margin is amount revenue that left over after using all operating cost. Its mean the higher amount been left over, the higher cover for non-operating costs such as interest expenses. |
| Keywords: | Corporate Governance, Return of Asset (ROA), Operating Margin (OM), Average Collection Period (ACP), Standard deviation |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97337&r=all |
| By: | azahar, intan nur asyiqin |
| Abstract: | The study’s aim is an attempt to determine the altogether performance of Amazon company in e-commerce industry which involved two main factors of internal (firm-specific) and external (macroeconomics) factors. These data was interpreted and collected from Amazon annual reports of five year period from 2014 to 2018. There are four risks involved which are liquidity risk, credit risk, operational risk, and market risk. Measurement of current ratio, quick ratio, average-collection period, debt to income ratio, operational ratio, and operating margin are used to inspect the general five years execution of Amazon from e-commerce industry. Subsequently, to decide the relationship of these risk variables to the business' exhibition, this investigation used liquidity risk, credit risk, operational risk, market risk, gross domestic products (GDP), inflation, interest rate, exchange rate, standard deviation, and corporate governance index. SPSS framework are utilized to do information examination in which by actualizing stepwise strategy which apply the descriptive statistics, correlation, and model summary. In view of the information examination, we can presume that operational risk is the most influence to ROA since it gives the most effect to performances of the business. Regardless, different factors give low effect to the ROA and there is no noteworthy related with. |
| Keywords: | Performance, operational risk |
| JEL: | G3 G32 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97210&r=all |
| By: | RUSLY, NURHIDAYAH |
| Abstract: | The aim of this study was to perform the overall performance of easyHotel PLC with the risk and performance associated with corporate governance.The data acquired from the annual report of easyHotel PLC starting from the year 2014 to 2018. Risk assessment is through the use of credit risk, liquidity risk, and operating risk. The paper uses the existing liquidity ratio and operating ratio to see the relationship of risk factors to profitabilibity. This study also employing ratios include the return on assets (ROA) and return on equity (ROE). The results show one factor significant to performance of the group which is the highest significant to the profitability. |
| Keywords: | Company Performance, ROA , ROE, Current Ratio. |
| JEL: | G3 G32 |
| Date: | 2019–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97233&r=all |
| By: | Zi Wei, Ch'ng |
| Abstract: | This study aims to examine the impact of firm-specific factors and the macroeconomics factors towards the performance of Adobe Inc. The data for this study is obtained from the annual report of Adobe Inc. from year 2014 to year 2018. The performance of the company is measured by the return on assets. On the other hand, the firm-specific factors are represented by CG index score, average collection period (credit risk), operating margin (operational risk) and current ratio (liquidity risk) while the macroeconomics factors are represented by market risk which include gross domestics products, exchange rate, inflation, interest rate and standard deviation. Data obtained was then being analyzed by using Statistical Package for Social Science (SPSS) version 22. This study applied descriptive analysis, correlation analysis, coefficients and stepwise multiple regression analysis to examine the relationship among the variables. The findings of this study showed that both the operating margin and exchange rate have a significant relationship with the company performance in which they can influence the performance of company. The study has recommended the company can actually reduce their operating expense and create economies of scale in the business operation to improve the operating margin. Moreover, the company can also use the local suppliers or employ the local workers instead of outsource from other countries to deal with changes in exchange rate. |
| Keywords: | Operating Margin, Exchange Rate, Company Performance, Corporate Governance |
| JEL: | G3 G32 O16 |
| Date: | 2019–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97246&r=all |
| By: | Annathurai, Anusha |
| Abstract: | Analysis on corporate governance principles of AIA Bhd. is studied in this article along with their risk exposure and performance as per the concern of the research objective. The performance of the company is indicated by Return on Asset which act as the dependent variable of this study. Whereas, the risk exposure is indicated by internal and external factors of independent variables. Internal factors cover Liquidity Risk in terms of current ratio and quick ratio; Credit Risk in terms of average collection period and debt to income ratio; and Operational Risk in terms of operational ratio and operating margin. Meanwhile, external factor covers Market Risk in terms of Gross Domestic Product (GDP) rate, Inflation Rate, Interest Rate and Exchange Rate. The analysis of this study shows that the influence of these independent variables is significant towards the dependent variable. The analysis concluded that the most significant variable is Operating Margin. |
| Keywords: | AIA Bhd., Corporate Governance, Performance, Risk, Insurance, Return on Asset, Liquidity Risk, Credit Risk, Operational Risk, Market Risk, Current Ratio, Quick Ratio, Average Collection Period, Debt to Income Ratio, Operational Risk, Operating Margin, Gross Domestic Product (GDP), Inflation Rate, Interest Rate, Exchange Rate AIA Bhd., Corporate Governance, Performance, Risk, Insurance, Return on Asset, Liquidity Risk, Credit Risk, Operational Risk, Market Risk, Current Ratio, Quick Ratio, Average Collection Period, Debt to Income Ratio, Operational Risk, Operating Margin, Gross Domestic Product (GDP), Inflation Rate, Interest Rate, Exchange Rate |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97259&r=all |
| By: | Jamil, Wan Nur Syarizzah |
| Abstract: | The study’s aim is an attempt to determine the company performance DHL which involved two main factors of internal and external factors. These data were interpreted and collected DHL annual reports of five-year period from 2014 to 2018. There are four risks involved which are credit risk, operational risk, profitability, and market risk. Measurement of current ratio, quick ratio, average -collection period, debt to income ratio, operational ratio, and operating margin are used to examine the overall five years’ liquidity risk of DHL. Hence, to determine the relationship of these risk factors to the company performance, this study used profitability, credit risk, operational risk, market risk, gross domestic products (GDP), inflation, interest rate, exchange rate, stdv, and corporate governance index. SPSS system are used to do data analysis in which by implementing step wise method which apply the descriptive statistics, correlation, and model summary. |
| Keywords: | Return on asset, credit risk, operational risk and market risk |
| JEL: | G2 G23 |
| Date: | 2019–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97289&r=all |
| By: | Wong, Mei Kait |
| Abstract: | The aim of this study to conduct the general performance of Ford Motor Company where it can be affected by internal factors and external factors attributable to corporate governance failure and inefficient management. This paper aim to investigate the relationship between the determinant variable which is Return on Assets (ROA) and the external variables which are internal factors (operational ratio, quick ratio, operating margin, average-collection period, current ratio, corporate governance index, debt to income) and external factors (exchange rate, unemployment rate, interest rate, gross domestic product (GDP), beta, inflation) on and how they influenced ROA of Ford Motor Company from 2014 to 2018. The findings and analysis show that the internal factors (operating margin) and the external factors (Beta or also known as market risk) were positively significant to the ROA and influenced ROA the most. |
| Keywords: | Return on Assets (ROA), operating margin, Corporate Governance, Beta, Market risk |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97251&r=all |
| By: | TARMIDI, MUHAMMAD REDHA |
| Abstract: | Aim of this study is to analyze internal and external factor that affected in return on assets in Huawei. The analysis required from the annual report from year 2014 to 2018 by our target company. The internal factor consist of ROA, quick ratio, current ratio, debt to income, operational ratio and operational margin while external factor consist of Gross Domestic Product(GDP), inflation, interest rate and exchange rate. The finding show the company performance can be influenced macroeconomic factor in five years. The company needs to apply four efficiency of corporate governance which is accountability, transparency, independent, fairness and sustainability. |
| Keywords: | Return On Assets, Liquidity Risk, Corporate Governance Index, Macroeconomic |
| JEL: | G3 G32 G34 |
| Date: | 2019–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97215&r=all |
| By: | Chai, Wei Jian |
| Abstract: | Profitability is a crucial aspect that in the study of the company namely McDonald’s Corporation. The main goal of this study is to determine the impacts of liquidity and market risk towards profitability or return on assets of McDonald’s Corporation from 2014 to 2018. As a result, the analysis shows that quick ratio as liquidity risk and standard deviation as the market risk that influences the profitability of McDonald’s Corporation the most along the period 2014 to 2018. This study also pointed out the suitable solutions for McDonald’s Corporation, which are diversify investments by using more cash and increase the share price by monitoring company performance in generating higher profits. |
| Keywords: | ROA, Quick ratio, standard deviation, market risk, Corporate Governance, company performance |
| JEL: | G3 O16 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97268&r=all |
| By: | Nina Boyarchenko; Or Shachar |
| Abstract: | Rising nonfinancial corporate business leverage, especially for riskier “high-yield” firms, has recently received increased public and supervisory scrutiny. For example, the Federal Reserve’s May 2019 Financial Stability Report notes that “growth in business debt has outpaced GDP for the past 10 years, with the most rapid growth in debt over recent years concentrated among the riskiest firms.” At the upper end of the credit spectrum, “investment-grade” firms have also increased their borrowing, while the number of higher-rated firms has decreased. In fact, there are currently only two U.S. companies rated AAA: Johnson & Johnson and Microsoft. In this post, we examine recent trends in the issuance of investment-grade corporate bonds and argue that the combination of increased BAA issuance and virtually nonexistent AAA issuance both reduces the usefulness of the BAA–AAA spread as a credit risk indicator and poses a financial stability concern. |
| Keywords: | BAA-AAA spread; bond issuance; corporate credit risk |
| JEL: | G3 |
| Date: | 2020–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:86706&r=all |
| By: | Mohd Yusof, Norsafinas |
| Abstract: | The purpose of the study is to assess corporate governance and its effect on Delfi Ltd's firm performance and risk. The research approach is to evaluate Delfi's regression using SPSS Model. The study found that Delfi's performance is dramatically declining and, as it increases slightly over the years, means that its potential against short-term liability is deteriorating, the regression analysis indicates that Delfi's performance has higher interest rate (external factor) impact. |
| Keywords: | performance, interest rate, corporate governance |
| JEL: | E43 G3 L2 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97213&r=all |
| By: | Syahirah, Nuramira |
| Abstract: | The purpose of this study is to examine the overall performance of United Airlines as airlines industry in United States. Overall performance is measured from 2014 to 2018 as the measurement of credit risk, operating risk, liquidity risk, and market risk which involves economic situation to look at the company's success in the airline industry. Return on Assets (ROA) measures the performance of the company. The results suggest that the equations used in this analysis have different effects on the company's efficiency. The findings throughout this study show that there is positive relationship between corporate governance and ROA. The ROA has a negative relationship with four variables, namely liquidity risk, operating risk, credit risk and market risk. |
| Keywords: | Return on Asset, profitability, credit risk, liquidity risk and market risk. |
| JEL: | G3 G38 |
| Date: | 2019–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97219&r=all |
| By: | Bulkaini, Haizat |
| Abstract: | Aim of this study is to analysed does the internal and external factors affect the performance in Hiap Seng Engineering Ltd. The internal factors consist of liquidity risk, credit risk, and operational risk and corporate governance index. While, the external factors consist a Gross Domestic Product (GDP), inflation, interest rate, exchange rate, and standard deviation. The data obtained from annual report of Hiap Seng Engineering Ltd. for five years from 2014 until 2018. The both factors used to see the overall performance in five year that influence the company performance. Data was analysed by utilizing descriptive statistic, correlation, coefficient, anova and model of summary. The data calculated is on average. This study suggests the company need to apply efficiency 5 principle of corporate governance, which is transparency, accountability, fairness, and independence and transparency. |
| Keywords: | ROA, external factors, internal factors |
| JEL: | G32 G33 G38 |
| Date: | 2019–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97212&r=all |
| By: | Krzysztof Echaust (Pozna? University of Economics and Business) |
| Abstract: | According to the theory of financial engineering the valuation of financial instruments takes place in the risk-neutral pricing framework. In this case, the valuation of financial instruments is made without taking into account the risk and, as a consequence, the influence of market movements on options valuation is ignored. In this work, we try to check whether the valuation of call and put is independent on the condition of the capital market. We analyse investors propensity to buy call options during the bull market and put options during market downturns. In this study 678 options series listed on Warsaw Stock Exchange are considered in the period from 2007 to 2018. The results of the conducted research indicate differences in the valuation of both types of options. Put options are priced with a higher level of volatility in times of extreme risk, but the valuation of call options does not depend on situation on the financial market. |
| Keywords: | implied volatility, option, call, put, pricing |
| JEL: | G13 G10 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9912275&r=all |
| By: | Sew, TianHuan |
| Abstract: | In this paper, we are going to exam the relationship between the return on asset (ROA) with internal, external factors of the ICBC. Kupiec, P., & Lee, Y. (2012), stated that ROA is important statistic toward the profitability of banks. The data that we used is get from the annual reports of ICBC from the year of 2014 to 2018. The independent variables in this study which is internal and external factors are current ratio, credit risk, operating margin, CGI, GDP, interest rate, inflation, and also exchange rate, while the dependent variable is return on asset. Therefore, this study is to analyze the relationship between the internal and external factors of ICBC with return on asset. Data was analyzed by utilizing descriptive statistics, correlation, model of summary, ANOVA, and coefficient. In the analysis shows a significant relationship between return on assets and current ratio compare with other factors especially corporate governance index (CGI) and exchange rate. |
| Keywords: | Return on Asset, corporate governance, company performance, liquidity risk |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97249&r=all |
| By: | Har, Sin Min |
| Abstract: | This study will examine how the impact of liquidity risk correlated with the company return on asset ratio (ROA) on Fiat Chrysler Automotive and will explain the impact using the corporate governance perspective. To support this study the usage of the internal data in the company and external data in the macro economy will be analyzed using two methods. The first method that using in this study is the descriptive data. The data that use in the descriptive data is obtained from the company 5 years annual report which is from 2014 to 2018 and calculates it using Excel. The data will be explained with the four risks which is credit risk, market risk, operational risk and followed by credit risk. The next method is the SPSS analysis. In SPSS analysis three models of data have been run to achieve all the results. The first model is the company's internal data from FCA’s 2014 – 2018 annual report, the second model is external data related to the macroeconomy in the United States which obtained from World Bank and last but not least the third model that combines both internal and external data. |
| Keywords: | Corporate Governance, Risk, GDP, Inflation |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97245&r=all |
| By: | Jamalludin Helmi, Faten Fatihah |
| Abstract: | The objectives of the article are three-fold, namely, to investigate, (i) the influence of the selected internal factors to the Return on Asset (ROA), ii) the influence of the selected external factors to the Return on Asset (ROA), and (iii) the influence of both factors (external and internal) factors to the Return on assets (ROA). This research was design as a quantitative, using secondary data in nature by compiling the financial across five years (2014 to 2018) of a specific automobile company. i.e., Volkswagen. Even though the focus was given to three (3) Statements, namely the Profit and Loss Account, the Balance Sheet and The Cash Flow Statement but other related statement such as notes of accounts was also need to be investigated. Other than that, other secondary sources as Text Books, Reference Books, Journals, Articles, Magazines and from the Internet. The data were summarized using Microsoft Excel before analyzed using SPSS application. The findings were as follows: i) The dependent variable was explained 100% by the internal factors, ii) For the external factors, 74.5% of the selected variables (which consisted of STDV, Exchange rate, and Inflation) were able to explain the ROA, and iii) both type of factors (internal and external74.0% of the variance in the dependent variable is explained by the combination of internal and external factors. Furthermore, operation margin has a great effect to the dependent variables. This study, however is limited only to the automobile company. This study also limited to the data used, as it only includes five years performance and financial statements of Volkswagen. |
| Keywords: | Corporate Governance, Liquidity Risk, Return on Asset |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97265&r=all |
| By: | Pang, Xiao Xuan |
| Abstract: | Nowadays, the business environment has undergone some changes, bringing more and more complexity and occurrence of unpredictable events. In today's ever-changing global economy, companies face enormous competitive pressures that require them to become better, faster and cheaper. They need to cope with the increasingly serious challenges of the environment and need to improve their adaptability. Today, continuous performance is the goal of any company. This is because only through performance, companies can experience development and progress. Therefore, this study is to know the influences of internal variables and external variables toward company’s performance for effective and efficient results. |
| Keywords: | Company’s performance, Internal and External Variables |
| JEL: | G3 G32 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97168&r=all |
| By: | lai, xiaoqi |
| Abstract: | The purpose of this study is to measure corporate governance capabilities and the impact on ASUS's performance and risk. The research method used in this study was to use the SPSS System to perform regression analysis on Asus. On the surface of research, Asus's liquidity performance has deteriorated year by year, which means that Asus's short-term debt bearing capacity is weakening. And regression analysis shows that Asus's liquidity risk is affected by the return on assets (internal factors) and China's domestic production growth (external factors), and is greatly affected. |
| Keywords: | liquidity risk, and corporate governance |
| JEL: | G3 O1 O16 |
| Date: | 2019–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97236&r=all |
| By: | Mohd Noh, Nurul Azlinda |
| Abstract: | Aim towards this study is to analyzed does liquidity risk effect the internal and external factor in Estee Lauder Company. The internal factor consists a liquidity risk, credit risk, market risk and operational risk. While, the external factor consists a Gross Domestic Product (GDP), inflation, interest rate, exchange rate, standard deviation and index score. The data obtained from annual report Estee Lauder Company for five years starting from 2012 until 2016. The both factors used to see the overall performance in five year and macroeconomic factor also required to know that influence the company performance. Data was analyzed by utilizing descriptive statistic, correlation, coefficient, ANOVA, and model of summary. The data calculated is on average. This study suggests the company need to apply efficiency 5 principle of corporate governance, which is transparency, accountability, fairness, sustainability and independence. |
| Keywords: | Liquidity Risk, Credit Risk, Corporate Governance. |
| JEL: | G32 |
| Date: | 2019–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97273&r=all |
| By: | Thong, Lik Hong |
| Abstract: | This study’s aim is to determine the internal and external factors which affect performance risk in the years 2014-2018. We use SPSS to run the internal and external data and found the factors which significant and affected Dunkin’s brand. Inflation, debt to income ratio and operating margin is the factors affected Dunkin’s brand in 2014-2018 at United State. |
| Keywords: | corporate governance, inflation, return on asset, debt to income ratio, and operating margin |
| JEL: | G10 G30 |
| Date: | 2019–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97266&r=all |
| By: | WENJI, TEOH |
| Abstract: | The performance of a company can be affected by internal and external factors. This study is to investigate the internal determinants (current ratio, quick ratio, debt to income, average-collection period, operational ratio, operating margin and corporate governance index) and external determinants (gross domestic product, inflation rates, interest rate, exchange rate and STDV) and how they influence the return on assets of Domino’s Pizza Incorporation from 2014 to 2018. The elements of corporate governance will be used and practice indirectly in this study. The findings of this study showed that the external factor (STDV) was positively significant to the return on assets and has the most influenced to the company performance. This study recommended Domino’s to take cautious on its share price in order to improve company performance. |
| Keywords: | Return on assets, ROA, share price, corporate governance, market risk, internal factors, external factor |
| JEL: | G3 G32 G34 M41 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97319&r=all |
| By: | Rose C. Liao (Rutgers Business School, Rutgers University); Gilberto Loureiro (NIPE and Department of Economics, University of Minho); Alvaro G. Taboada (Mississippi State University) |
| Abstract: | Using a sample of 469 banks from 39 countries between 2008 and 2017 and a generalized difference-in-differences methodology, we show that board gender quota laws lead to increased female board representation. We find an increase in risk taking and systemic risk and worse long-run operating performance post quota law for banks most impacted by the reforms, and those located in countries with a smaller pool of qualified women executives. Results suggest that the addition of younger and less experienced female board members to important board committees due labor market constraints drive the risk taking and performance outcomes. |
| Keywords: | Gender quotas; director independence; bank risk taking; bank performance |
| JEL: | G15 G21 G28 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:17/2019&r=all |
| By: | Tarek Alexander Hassan; Stephan Hollander; Laurence van Lent; Ahmed Tahoun |
| Abstract: | Using tools from computational linguistics, we construct new measures of the impact of Brexit on listed firms in the United States and around the world; these measures are based on the proportion of discussions in quarterly earnings conference calls on the costs, benefits, and risks associated with the UK's intention to leave the EU. We identify which firms expect to gain or lose from Brexit and which are most affected by Brexit uncertainty. We then estimate effects of the different types of Brexit exposure on firm-level outcomes. We find that the impact of Brexit-related uncertainty extends far beyond British or even European firms; US and international firms most exposed to Brexit uncertainty lost a substantial fraction of their market value and have also reduced hiring and investment. In addition to Brexit uncertainty (the second moment), we find that international firms overwhelmingly expect negative direct effects from Brexit (the first moment) should it come to pass. Most prominently, firms expect difficulties from regulatory divergence, reduced labor mobility, limited trade access, and the costs of post-Brexit operational adjustments. Consistent with the predictions of canonical theory, this negative sentiment is recognized and priced in stock markets but has not yet significantly affected firm actions. |
| JEL: | D8 E22 E24 E32 E6 F0 G18 G32 G38 H32 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26609&r=all |
| By: | Aw, Yi Ying |
| Abstract: | Corporate governance is a significant part in a company. It is essential for a company to manage the business and affairs of company. The study attempts to determine corporate governance, the impact of company performance and risk of Mitsubishi Electric Corporation. The study also attempts to determine impact of internal factors and external factors influencing company’s performance. This review is to evaluate the value of profitability and operating margin. This research involved relationship between corporate governance, company’s performance, and risk of Mitsubishi Electric Corporation within five years which is from 2014 to 2018. This companies were from electronic industry and data was collected from Mitsubishi Electric Corporation’s annual report. This ratios calculated were the return on assets (ROA), quick ratio, current ratio, average-collection period, debt to income, operational ratio, operating margin, and external factors (gross domestic product (GDP), inflation rate, interest rate and exchange rate). Conclusion based on profitability and operating margin of company. This study advice that company should be manage own business effectively and more compliance with principles of corporate governance. |
| Keywords: | Corporate Governance, Company’s Performance, Profitability, Operating Margin |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97277&r=all |
| By: | Lin, Lili |
| Abstract: | The purpose of this study is to measure the corporate governance and its impact to the firm performance and risk of Starbucks. The research method for this study was to perform regression analysis on Starbucks using the SPSS system. The study found that the Starbucks' liquidity has been relatively stable over the past five years. Regression analysis shows that Starbucks' liquidity risk is affected by the return on assets (internal factors) and the US gross domestic product (external factors). |
| Keywords: | Liquidity risk，macroeconomics and corporate governance |
| JEL: | G3 O1 O16 |
| Date: | 2019–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97230&r=all |
| By: | Kah Kah, Chow |
| Abstract: | The purpose of this article is to examine Jerasia Capital Berhad’s relative financial performance with its internal factors and external factors. The data collected from annual reports of Jerasia Capital Berhad for the period 2014 to 2018 has been analysed through regression correlation. Return on equity (ROE) is used as the measurement of company’s performance whereas risk indicators are selected as internal factors and macroeconomic factors are used as the external factors. When these considerations are analysed, one of the market risk indicator, interest rate which under external factors will most influence the performance. A few recommendations are suggested based on the results. |
| Keywords: | Performance, ROE, External Factors, Interest Rate |
| JEL: | G3 G32 |
| Date: | 2019–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97177&r=all |
| By: | Ooi, Ee Hann |
| Abstract: | The purpose of this study is to measure corporate governance impact to the corporation performance and liquidity risk of ZTE using the linear regression SPSS system analysis the liquidity performance of ZTE. In this study found that ZTE’s liquidity ratio not very good in these 5 years as the ability of ZTE to pay the short-term liability is weaker. Through SPSS system also shows that the internal factors that affect the liquidity of ZTE is debt to income ratio while the external factors are inflation, standard deviation (STDV) and exchange rate. |
| Keywords: | Liquidity Risk, Electronic Industry and Debt to Income Ratio |
| JEL: | G3 G32 |
| Date: | 2019–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97216&r=all |
| By: | Ling, Coco Siu Yin |
| Abstract: | The performance of a company can be affected by the financial risks associated with it. It is important for a company to manage financial risks efficiently. The purpose of this study is to identify the impact of financial risks on the performance of Apollo Food Holdings Berhad which is a food and beverages company for the period of 2014-2018. This study develops multiple linear regression models to analyse the impact of financial risk on company performance. The findings show that operating margin is the most significant variable that positively influence the performance of the company. This study suggests that Apollo Food Holdings Berhad should deal with their operating margin in order to increase the performance and profitability of the company. This can be done by increasing the revenue or reducing its cost. |
| Keywords: | Performance, Financial Risks, Operating Margin. |
| JEL: | E6 G3 G32 |
| Date: | 2019–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97889&r=all |
| By: | Lim, Wen Yi |
| Abstract: | GM is also known as General Motors Company is America famous high-end automobile producer. In September 2019 GM facing a strike by its employees about terms in a contract. To get employees back to work after more than a month on strike GM offers a 3 percent pay rise for two years of the four-year contract, and similar-sized bonuses for two years. They also hammered out a deal to make permanent temporary workers with three years on the job. This strike cause GM factories paralyzed across the country with losing $90 million a day and thousands of auto workers are draining their savings since they stop working on 16 September. This study aims to find out the internal and external factors affect liquidity in General Motor Company from 2014 to 2018. 5 years annual report of General Motors Company which starts from 2014 to 2018 is to calculate the relationship by using this formula (return on asset, current ratio, quick ratio, average-collection period, debt to income, operational ratio and operating margin) In this study, I have found out that strong corporate governance is applied in GM. However, it founds that quick ratio have a significant relationship with the liquidity of GM. |
| Keywords: | liquidity, risk, corporate governance |
| JEL: | G3 G32 O16 |
| Date: | 2019–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97257&r=all |
| By: | Sim, Siew Pei |
| Abstract: | Performance of a company is very important from time to time. This study attempted to investigate the factors that will influencing the performance of HSIB in Malaysia. The financial data is collected from the annual report from 2014 to 2018. The independent variables consist of eight internal factors and five external factors. This study used multi-regression analysis. The data is analyzed by using descriptive statistic, correlations, modal summary and coefficients. The findings show operating margin is very strong positively and moderate significantly correlated to the performance. Therefore, the study is provided some recommendations that can be taken in order to improve HSIB’s performance through operating margin at the end. |
| Keywords: | Performance, Internal Factors, External Factors, Corporate Governance |
| JEL: | E6 G0 G3 G32 |
| Date: | 2019–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97173&r=all |