• The Journal of Economics, Marketing and Management
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• v.3 no.3
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• pp.1-6
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• 2015

Quality auditor and auditors of larger firms have a positive effect on profit is unusual. The auditors smaller negative effect on profit companies profit is unusual. Change to larger audit shows the quality of earnings and to respond more investors positive changes in income and increased costs and reduced profitability is less negative price changes. Similarly, switching to a smaller auditor confirms the low quality of earnings, resulting in a negative response to the market. In this article market reaction (response investors) the quality of the audit and the auditor were studied in the Tehran Stock Exchange. in general, information about companies in capital market accounting to investors and the capital market is considered to be valuable.

• Journal of the Korea Institute of Building Construction
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• v.21 no.2
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• pp.149-156
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• 2021

This study empirically verified whether aggressive order intake affect occurrence of defects of Korean construction companies. In order to compensate for the shortage of construction costs due to aggressive low-cost orders of contractors, self-response measures such as design changes are followed, and construction defects may be induced in this process. It aims to verify relevance between aggressive order intake and defect in construction empirically using financial accounting data. As a result, it was confirmed that an abnormal increase in order volume and a deterioration in profitability such as operating margin due to aggressive order taking behavior leads to a decrease in construction quality and occurrence of defects. In addition, it was also confirmed that low construction ability and intentional changes in construction design or contract conditions after construction commences were a direct causes of defects. The results of this study can serve as an opportunity to come up with measures to prevent defects by confirming the relationship between defects in construction and deterioration of profitability due to aggressive low-cost order takings.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.389-400
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• 2020

A construction project is a designed product made up of labors, materials, and installations in the project positioned on the ground and may include the underground and ground section, and the section in water or on the water surface. It is a civil, industrial, transport, agricultural and rural development, infrastructure, or some other. A key phase in the life cycle of these construction projects is the implementation when building products are made directly with workers, equipment, materials, and managers. If there is a lack of management experience, information, and problem-solving solutions to tackle the risks faced by contractors, especially foreign ones, will fail in controlling the project's cost. This study was conducted with investigations, discussions, and evaluation of the factors that lead to cost overruns in the construction projects of international contractors in Vietnam. The principal component analysis (PCA) showed that those factors that influence cost overruns these construction projects fall into five general groups, including factors related to (i) the owners, (ii) the foreign contractors, (iii) the subcontractors and suppliers, (iv) state management, and (v) the project itself. Besides, the study proposes solutions to limit cost overruns in construction projects and improve the profitability of international contractors in Vietnam.

• The Journal of Fisheries Business Administration
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• v.49 no.1
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• pp.67-89
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• 2018

In fisheries, as well as in other natural resource-based industries, there is difference between profit and rent. The former is a basic indicator for gauging the business performance of firms, while the latter is for the evaluation of the contribution of resources and industry to economic welfare. Put simply, resource economists are mainly concerned about rent, including pure resource rent and producer surplus (intra-marginal rent [IMR]). In other hand, business economists are mainly concerned about the profitability of the firms comprising the industry. In the academic literature, there are not always clear definitions of the profit and rent concepts and their use in actual analyses. This article will mainly discuss and clarify differences and similarities in profit and rent concepts. In the classical fisheries economic model with one-dimensional homogenous effort and a constant cost per unit of effort, no rent exists in open-access equilibrium. A simple change in this model, for example by introducing heterogeneous effort, opens it to the existence of rent, specifically IMR, at open-access equilibrium. We estimated resource rent and profit from the data using SNA(system of national accounts) and accounting data methods. RR(resource rent) is composed of value-added, compensation of employees, consumption of fixed capital and normal profit in SNA. RR(resource rent) is composed of EBT, Depreciation of fishing rights, financial costs of fishing rights and calculated interests on equity in accounting data methods. We found that the result of two methods is equal. RR is composed of excess profit, rent and interest expenses. In Korea, the magnitude of RR and profit is not different significantly.

• Journal of Korea Entertainment Industry Association
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• v.15 no.6
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• pp.55-70
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• 2021

This study investigates the following important financial questions using entertainment enterprises: 1) how does cash reserve affect a firm's financial value? 2) what factors influence the level of cash retention of a firm? For empirical tests, we use accounting and financial data of entertainment companies listed in the KOSPI and KOSDAQ markets for a long-term time period covering from 2000 to 2018. The main findings of this paper are as follows: First, entertainment companies maintain higher level of cash holdings compared to non-entertainment companies. Second, the cash holdings of entertainment enterprises have positive influence on firms' financial value. Third, among various firm characteristics known for affecting the cash holdings level, leverage and profitability exhibit strong relationships in entertainment enterprises. Entertainment firms with lower leverage and higher profitability tend to reserve more cash inside them. These findings suggest that entertainment companies are highly valued by stock market participants as having prospective opportunities, thus, firms with sufficient cash holdings tend to have higher firm value. In addition, these findings imply that cash in entertainment enterprises functions as a substitute for debts and the cash holdings are less likely driven by agency problems.

• The Journal of Information Systems
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• v.16 no.1
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• pp.91-109
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• 2007

This study investigates the extent to which the implementation of enterprise resource planning(ERP) systems enhance the corporate performance by examining financial variables of the implemented firms against those of the control fm. A total of 346 observations were obtained from 160 firms, 80 implemented firms and 80 control firms, for the period of 1998-2002. Results from the study partly support the assertion that ERP improves the full spectrum of business functions such as selling, marketing, purchasing, warehousing, accounting and human resources by tightly integrating enterprise-wise information databases. First the profitability of the implemented group was different from that of the control group. The indicator (dummy) variable was able to explain the differences in total cash flows between the implemented group fm and the control group firms. Second, ERP turned out In improve the efficiency in managing assets. The indicator variable has the power in explaining the differences in the amount of accounts receivables between the implemented group firms and the control group firms. Third, the product turnover ratio of the implemented group was different from that of the control group. Fourth, the average value added per employee and the net income per employee of the implemented group firms were greats- than those of the control group firms. Finally, the average magnitude of the administrative expenses of the implemented group firms was smaller than that of the control group firms.

• The Journal of Industrial Distribution & Business
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• v.4 no.1
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• pp.5-10
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• 2013

Purpose - Labor productivity is extremely important to the profitability and competitive advantage of organizations that provide services to customers, such as banks. This study investigates the factors driving labor productivity in Iran's Melli Bank. Research design, data, methodology - Five managerial, psychosocial, cultural, and individual factors are identified and their relative importance for labor productivity prioritized using AHP. The required data are then collected through a questionnaire designed for a pairwise comparison of the driving factors of labor productivity and their subcategories. Results - The study outcomes reveal that the managerial and individual factors are the most important. Specifically, the most important factors in increasing labor productivity in the branches of Melli Bank are having a competent supervisor, promotion opportunities, fair working conditions, conscientiousness, the right tools, and a correspondence between skills and work. Conclusions - Implementing AHP using Expert Choice software revealed that, among the driving factors of labor productivity (i.e., managerial, psychosocial, cultural, environmental, and personal), managerial factors were considered the most important by the respondents.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.71-79
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• 2021

This study investigates the capital structure policy among Indonesian public companies. Previous studies suggest that capital structure policy could follow either static or dynamic behavior. The sample data used in this study was companies in the manufacturing sector, divided into three sub-sectors: the basic and chemical industry, miscellaneous industry, and the consumer goods industry. This study uses panel data from 2010 to 2018, with the Generalized Least Square (GLS) method and compared whether the fixed effect model is better than the common effect model. The results show that the dynamic and non-linear model tests can explain the capital structure determinants than the static and linear models. The dynamic model shows that the capital structure of a certain year is influenced by the capital structure of the previous year. The findings indicate that the company performs some adjustments in its capital structure policy by referring to the previous debt ratio, which implies support to the trade-off theory (TOT). The study also shows that profitability, tangible assets, size, and age explain the variation of capital structure policy. The patterns on the dynamic and non-linear confirm that capital structure runs in a nonlinear pattern, based on the sector, company condition, and the dynamic environment.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.2
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• pp.343-353
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• 2023

Corporate reputation is a widely debated topic among academics and a crucial issue in the business world. However, previous research in this area has been scattered and fragmented, leaving room for further study, particularly in terms of reputation measurement methods. Factors such as sustainability reporting, governance attributes, and company characteristics have been linked to improved company reputation. However, there is limited research on the effects of these variables on the new methods of measuring reputation, especially in developing countries like Malaysia. Therefore, the current study developed a new measurement for reputation and aimed to examine the relationship between these variables and the new proxy of reputation. The current study collected secondary data from the company's annual report for two years period of study (i.e., 2018 and 2019) and employed content analysis. A period of two years was chosen and deemed ample to provide insightful findings of the effect of the variables associated with reputation disclosure. The results indicate that sustainability reporting, outside directors, company size, leverage, and profitability significantly impact corporate reputation. This finding suggests that Malaysian PLCs and other firms in developing countries must recognize sustainability reporting as part of their reputation management strategy that influences the company's reputation.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.7
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• pp.231-237
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• 2022

Intellectual Capital, a valuable intangible organizational asset, is primarily linked to a company's financial performance and is divided into three categories: human, structural, and relational capital. This paper investigates the impact of intellectual capital on the financial performance of selected Pakistani companies in the Information and Communication sector, as this sector is heavily reliant on intellectual capital. The data for 11 firms was gathered from the State Bank's Financial Statements Analysis of Companies Listed on the Pakistan Stock Exchange from 2015 to 2020. Pulić's (2004) Value Added Intellectual Coefficient (VAICTM) has been used to assess a company's IC efficiency. VAIC^TM and its components, the efficiency of intellectual capital, and the efficiency of capital employed are calculated. Financial performance is measured through return on assets, return on capital employed, and asset turnover ratio. Multiple regression, fixed-effect, and random-effect Panel Data estimation are used in the empirical study. The findings suggest that intellectual capital efficiency has a large impact on major profitability metrics, but little effect on company productivity. It can be inferred from the results that the companies must invest in advanced technology, the latest machinery, and well-equipped offices to improve financial performance and productivity and gain a competitive advantage.