• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.135-141
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• 2021

The study aims to examine the impact of liquidity and solvency management on the financial performance of Jordanian manufacturing companies listed on the Amman Stock Exchange, for a period of 10 years from 2010 to 2019. The size of the company was used as a control variable. The study employs Return on Assets (ROA) and Earnings Per Share (EPS) to measure financial performance. Current ratio (CR) and total debts to total assets were used as proxies for liquidity and solvency management, while logarithm of total assets was used to measure the size. Correlation and multi regression analyses have been applied to analyze the data. The results show a statistically significant impact of independent and control variables (liquidity and solvency management and the size of the company) on financial performance, while the detailed results of the hypotheses indicate that liquidity has an insignificant reverse impact on financial performance. With respect to other variables, there is a significant positive impact of size on performance and a significant negative impact of solvency on performance. The study suggests in light of results, increasing investments in companies' assets by focusing on internal financing, such that large-sized companies with low leverage will have a good performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.391-402
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• 2021

This study aims to analyze the impact of the company's financial performance in mediating the relationship between Intellectual Capital and GCG on Corporate Value in banking companies listed on the Indonesia Stock Exchange (IDX). Also, this study analyzes the direct effect of intellectual capital and GCG on corporate value and the indirect effect through the company's financial performance. This study develops research of Chen et al. (2005) and measures Intellectual Capital with VAIC (Pulic, 1998). VAIC model is more accurate to measure Intellectual Capital because it can show potential intellectual use efficiently. The data used are banking companies listed on the IDX in 2014-2016 with purposive sampling technique and Data Analysis Technique used are path analysis. The results showed that the financial performance of banking companies was proven to mediate the relationship between intellectual capital and GCG. The role of GCG that can improve financial performance and corporate value is only GCG as measured by the ratio of independent commissioners and audit quality. Meanwhile, the financial performance and corporate value audited by the Big 4 will be greater than the financial performance and corporate value of the banking companies listed on the Indonesia Stock Exchange that are not audited by the Big 4.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1163-1169
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• 2021

This study aims to obtain empirical evidence regarding the effect of the fraud pentagon theory on financial statement fraud. The novelty of this study is the use of factor analysis to consolidate the five elements of the fraud pentagon into just one factor, which, to the knowledge of the researcher, no one else has done to research the effect of pentagon fraud on financial statement fraud. This study uses both agency theory and fraud pentagon theory. The population of this study consists of state-owned companies listed on the Indonesia Stock Exchange. The research period in this study is from 2014 to 2019. The data used in this study is secondary data obtained from the company's annual financial statements. A purposive sampling technique was used to determine the research sample. The selected companies total 20. Factor analysis and simple linear regression analysis method were used as research the methods. Based on the research results, it was found that the fraud pentagon theory had a positive effect on the financial statement fraud of state-owned companies listed on the Indonesia Stock Exchange. High level of the pentagon fraud on a company leads to a higher indication of financial statement fraud.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.885-894
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• 2021

This study aims to analyze the effect of the ratio of profitability and solvability (leverage) on the variable stock price, which is mediated (intervening) by the variable dividend policy. Using the financial reports of manufacturing companies in the consumer goods sector, we take profitability data (ROA, ROE, GPM, and NPM), solvability data (DAR, LTDER, and DER), dividend policy (DPR), and stock price (closing price) from 24 companies, which were selected as samples, from 2011 to 2018. Data was analyzed using the Structural Equation Modeling (SEM) method. The results show that profitability, solvability, and dividend policy affect changes in stock prices, respectively. On the other hand, profitability and solvability do not affect dividend policy. The indirect relationship (intervening) is assessed using a single test, resulting in a dividend policy that can intervene in the relationship between profitability and stock prices but cannot mediate the relationship between solvability and stock prices. The implication of this research is to provide knowledge to investors about the importance of knowing the company's financial performance. Companies with good financial performance will easily develop because there are sufficient funds for company operations. By analyzing financial ratios, investors can get signals to decide whether to invest in the company they want.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.423-431
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• 2021

This study aims to examine the effect of liquidity, activity, leverage, and profitability on firm value, as well as the effect of disclosure of corporate social responsibility (CSR), which in this study is a moderator and company size as a control variable. The sampling technique used in this study is a purposive sampling method with certain criteria, to obtain a sample of 22 LQ45 index companies listed on the Indonesia Stock Exchange in 2014-2019. The data analysis method in this study used was the Multiple Linear Regression Analysis with the SPSS 18 Program. The results show that the ratios of liquidity, activity, leverage, and profitability are significant to firm value in accordance with the initial hypothesis of the study. Corporate Social Responsibility (CSR) plays a role as a moderating variable and company size variable as a control variable on the effect of financial ratios (liquidity, activity, leverage, and profitability) on firm value. The implication of this research is that CSR has a very important role in increasing company value. To attract more investors, companies must pay attention not only to financial performance but also to social performance. Large-scale companies tend to do more CSR so that the company value will increase.

• Journal of Korea Port Economic Association
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• v.39 no.2
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• pp.97-110
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• 2023

This study examines the effect of macroeconomic shocks on the financial stability of the Korean shipping industry. Using Firth logistic regression model, this study estimates the default probability of a shipping company. The results from a default prediction model suggest that total assets are negatively correlated with default probability, while total debt is positively correlated with default probability. Based on the results from a default prediction model, this study investigates the effect of macroeconomic shocks, namely total assets, sales, and total debt shocks, on a shipping company's default probability. The stress test results indicate that a decrease in sales and total assets significantly deteriorates the financial stability of a shipping company.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.891-899
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• 2021

The United Nations' Millennium Development Goals (MDG) has become a goal to create a sustainable life. The MDGs' target was to be achieved in 2015, but it missed that date. The MDGs' target has turned into a Sustainable Development Goals (SDGs) to be achieved by 2030 The SDGs require financial support from companies. Funds are one of the resources to implement the SDGs. Government and private companies need to cooperate in achieving the SDGs target. The company has a responsibility to implement corporate social responsibility. The company's corporate social responsibility is part of the implementation of sustainable development in the SDGs. One of the essential industries that have responsibility for SDGs is the financial industry. This study aims to examine the determinant of corporate social responsibility funds in financial institutions in ASEAN countries. This study uses panel data to test the determinant variables on CSF provision. This study uses 45 sustainable development reports from 2015-2019. The total number of banks in the sample came from three countries, namely, Indonesia, Malaysia, and Thailand. This study concludes that firm size, profitability, efficiency, and the age of the CEO are variables that influence the size of corporate social responsibility funds.

• Journal of The Korean Digital Architecture Interior Association
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• v.12 no.1
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• pp.61-70
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• 2012

A construction project is very costly and takes a long time to make investment and yield profit. For this reason, financial institutions are cautious about financing construction projects. Meanwhile, a construction company needs financing from financial institutions to cover a large expense of a construction project. Thus, there is likely to be a close correlation between financing conditions and business operation of a construction company. To examine the relationship, variables were identified that are related to insolvency of a construction company and changes in financing conditions. The analysis period is between the second quarter of 2001 and the fourth quarter of 2010. Data was retrieved from TS2000 established by Korea Listed Companies Association (KLCA), Statistics Office, and Construction Economy Research Institute of Korea (CERIK). In terms of methodology, VECM (Vector Error Correction Model) was used to analyze dynamic relationship between changes in financing conditions and insolvency of a construction company based on the identified variables. The hypothesis was that changes in financing conditions would significantly affect business of a construction company, but, the analysis did not find a close relation between the two factors. However, it was shown that poor business of a construction company affects financing conditions adversely.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.327-337
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• 2019

The aim of this research is to contribute to enhancing the competitiveness of automotive parts suppliers while departing from the dependent relationship structure, by developing and interpreting factors that affect sale, which are financial achievements, in a practical way. The research data covered 200 companies from 2013-2017. The study hypothesis was verified by dividing the hypothesis into Model1 with control variables only and Model2 with control variables in independent variables. As a result of hypothesis testing, regarding sales, only capital size showed to have an effect in Model1, while in Model2, asset size, number of employees and joint ventures with foreign companies did but the other remaining factors did not. In particular, the results showed that an increase in financial performance required 'Economies of scale', and that companies that concentrated on a small number of items, diversified products into four or more items, or owned two to four suppliers, reaped positive results in financial performance. Therefore, in addition to the selection and concentration of corporate management for production items and account management, applying strategies, like the inter-company M&A, consortiums and co-branded strategies to achieve 'Economy of scale', would highly enhance the financial performance of automotive parts suppliers.

• Asia pacific journal of information systems
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• v.32 no.4
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• pp.707-727
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• 2022

Industrial revolution 4.0 makes business competition more challenging and will impact the instability of the company's financial performance. Dynamic environmental conditions make it difficult for companies to make predictions in making decisions. Investing in information technology (IT) is one way for companies to maintain financial stability and competitive advantage in dynamic competition. Resource-Based Theory (RBT) explains that information technology (IT) is a resource that can create a competitive advantage for the company. This study aims to examine the moderating role of dynamic industrial environments and IT strategic emphasis on the relationship between a lag effect of IT investment and firm's financial performance volatility. Using the data of companies listed on the Indonesia Stock Exchange (IDX) for five years starting from 2013-2017, the method used to estimate the research model's parameters is the generalized method of moments (GMM) approach. The results show that the industrial environment and the emphasis on IT strategy have a role in moderating and strengthening the relationship between the time lag in IT investment in reducing the firm's financial performance volatility.