Search results

This paper aims to test the effects of financial reforms on the structural stability of the parameter estimates in the determinants of capital structure.

A panel of 100 non‐financial companies listed on the Johannesburg Stock Exchange is constructed, and a panel least squares estimation technique is used to test for lagged, current and leading structural breaks in the firm specific determinants of leverage.

The results show that structural reforms have a significant role in influencing the empirical relationship between leverage and its determinants. Specifically, the lifting of international sanctions and stock market liberalisation have a significant impact on the stability of the profitability, growth and tax rate variables for the book and market values of the debt to equity ratio. Furthermore, when the total and short term debt ratios are considered, only stock market liberalisation appears to have a significant influence on the stability of the profitability parameter.

This paper adds to the existing body of literature on capital structure by documenting the extent of structural breaks in the parameter estimates of the relationship between leverage and firm specific determinants of capital structure for listed non‐financial firms in South Africa.

To take relative actions to cope with the threat which network finance information security now encounters by constructing controlling tactical and synergetic model.

It is practical to use the synergetic self‐organization theory to calculate the effects that the force of synergetic system of controlling tactics to financial information security makes on network financial system, and it is also practical to construct the synergetic model of controlling tactics to network financial information security on the basis of it.

Through applying synergetic analysis to controlling tactical system of network financial information security, it can be found out that controlling tactical system is an open system which changes from disorder to order and which keeps away from a balancing state. As an opening system, controlling tactics are interacting with outside from now and then.

Network financial information security takes on dynamics, relativity, integrity and complexity. Accessibility of data is the main limitations which model will be applied.

From the view of network financial information security, constructing controlling tactical and synergetic model of information security are explained.

Network finance is orientated as a special social and economic system. The author does analysis on the network financial system, and expounds order parameters and model of network financial system.

The proponents of balanced scorecard (BSc) claim that lead factors interrelate and their improvement ultimately leads to increased financial performance. The purpose of this paper is to use the underlying hypotheses of BSc in order to assess whether improvements that relate to learning and growth, internal processes and customers actually contribute to alterations of reported financial performance.

A structured questionnaire was used and data were gathered from 90 leading Greek companies in relation to the progress they have experienced during a three‐year period regarding various activities that can be broadly classified as aspects of the three qualitative perspectives of BSc (i.e. the learning and growth perspective, the internal business and production process perspective, and the customer perspective). Published financial data were used in order to calculate several financial ratios for all sample firms for the same time period.

The empirical data verified the underlying theoretical hypothesis of BSc that lead BSc perspectives are positively correlated with one an: other at a statistically significant level in a sequential way. However, within a given perspective not all measures exhibit homogeneous behaviour in terms of statistical significance. Supportive evidence was also found that the companies that have improved their return on equity (ROE) and return on assets (ROA) during the analysis period have increased their efforts towards aspects that characterize the learning and growth perspective more than the companies whose ROE and ROA values decreased.

The innovative dimension of this research work relies mainly on the fact that the BSc framework was used as a general structured model in order to assess the relationships between non‐financial parameters and financial performance. Thus, conclusions are not restricted only to companies that actually apply BSc.

An appropriate use of neural computing techniques is to apply them to corporate bankruptcy prediction, where conventional solutions can be hard to obtain. Having said that, choosing an appropriate Artificial Neural Network topology (ANN) for predicting corporate bankruptcy would remain a daunting prospect. The context of the problem is that there are no fixed rules in determining the ANN structure or its parameter values, a large number of ANN topologies may have to be constructed with different structures and parameters before determining an acceptable model. The trial‐and‐error process can be tedious, and the experience of the ANN user in constructing the topologies is invaluable in the search for a good model. Yet, a permanent solution does not exist. This paper identifies a non trivial novel approach for implementing artificial neural networks for the prediction of corporate bankruptcy by applying inter‐connected neural networks. The proposed approach is to produce a neural network architecture that captures the underlying characteristics of the problem domain. The research primarily employed financial data sets from the London Stock Exchange and Jordans financial database of major public and private British companies. Early results indicate that an ANN appears to outperform the traditional approach in forecasting corporate bankruptcy.

Nowadays, the increase in the capacity of batteries has laid the foundations for a broader diffusion of electric mobility. However, electric mobility is causing a growing electricity demand as well as the need to increase the diffusion of suitable charging stations. Within these last challenges, drawing on the recent literature, this chapter provides a critical and wide-ranging review of papers dealing with the formulation of the problem of the localisation of electric vehicle (EV) charging points. This problem is approached considering the electric charging infrastructure technologies, localisation criteria and related methodologies. This review shows how the ‘electric mobility revolution’ applies the technological innovations provided by the energy supply systems, and the location of these systems within the urban contexts. Since the technological innovations have different options, achieving an international standard of charging systems is still far away. Moreover, as there are several criteria, parameters and methodologies, and some analytical approaches for the localisation of electric vehicle charging points, the formulation of the ‘localisation’ problem should require the application of multi-criteria analysis to be addressed. Finally, the results show that there is no consensus on technologies, criteria, and methodologies to be adopted. Therefore, this wide-ranging analysis of the literature would be useful to support possible benchmarking and systematisation accordingly.

An inclusive financial system is essential to develop the country’s economy. A massive shift in financial inclusion was observed by the initiative of government to include financially excluded into the formal financial system by launching Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014. This paper aims to attempt to examine the efficiency of public sector banks in financial inclusion during pre and post introduction of PMJDY.

The data envelopment analysis is used to measure the efficiency of the banks towards financial inclusion for the periods, 2010–2011 to 2013–2014 as pre-introduction and 2014–2015 to 2017–2018 as post-introduction phase. For this study, supply-side parameters of financial inclusion considered as input variables and demand-side parameters as output variables.

The study finds that overall average efficiency towards financial inclusion increases significantly during post-phase, though all the public sector banks are not performing equally. There is a significant variation in efficiency level between them and even between the two periods. Further, there is a huge opportunity to enhance technical efficiency with the same quantity of input which will help to achieve the target of financial inclusion.

A comparative study between the two phases has taken place to analyse the impact of the scheme on the technical efficiency of banks. One of the notable innovativeness of this study is that, unlike most of the previous studies which are mostly theoretical and conceptual, the present study may place itself as a unique inquiry in the domain of efficiency review of public sector banks during pre and post introduction of PMJDY.

The purpose of this paper is to investigate the link between the financial performance of Islamic finance and economic growth in all of Malaysia, Indonesia, Brunei, Turkey and Saudi Arabia within the endogenous growth model framework.

This study applied dynamic panel system GMM to estimate the impact of the financial performance of Islamic finance on economic growth using quarterly data (2014:1-2018:4). CAMELS system parameters were employed as variables of the financial performance of Islamic finance and gross domestic product (GDP) as a proxy of economic growth. The sample contained all Islamic banks working in the five countries.

The findings demonstrated that the only significant factor of the financial performance of Islamic finance, which affects the endogenous economic growth, is profitability through return on equity (ROE). The experimental findings also indicated the necessity of stimulating other financial performance factors of Islamic finance to achieve a significant contribution to economic growth.

The analysis in this paper would fill the literature gap by investigating the link between financial performance of Islamic finance and economic growth, as this study serves as a guide for the academians, researchers and decision-makers who want to achieve economic growth through stimulating Islamic finance in the banking sector. However, this study may well be extended to investigate the link between the financial performance of Islamic finance and economic growth over the Z-score model as another measure for the financial performance of Islamic finance.

This paper is the first that investigates the link between financial performance of Islamic finance and economic growth empirically using CAMELS parameters within the endogenous growth model to provide robust information about this link based on a sample of the top pioneer Islamic finance countries.

The increasing awareness among the stakeholders demands the companies to be more transparent in their annual reporting. In the absence of standardized reporting norms, companies are free to structure sustainability report as per their understanding, willingness and intent. Although some voluntary guidelines have been issued by the regulatory authorities in India, the norms are still not clear as to what to report and how to report. This paper aims to look in to sustainability reporting practices by top companies listed in Bombay stock exchange and its impact on financial performance.

Using this sample of 68 companies from top 100 in the list of ET500 for 2016, self-constructed sustainability reporting score has been computed for each company for the financial year 2012-2013 and 2015-2016. The two periods represent pre- and post-disclosure reform periods in India. A sustainability reporting scale has been constructed using 16 parameters of sustainable performance based on social, environment and governance aspects as reported in the annual report, sustainability report and business responsibility report.

It has been found that there is a significant improvement in sustainability reporting by Indian companies after the introduction of disclosure reforms. Different sectors show significant difference in the sustainability reporting during pre-reform period but as the sustainability reporting improves after the reforms, sector difference reduces. Sustainability reporting is a significant predictor of financial parameters of return on sales, return on equity and Tobin’s Q in pre-reform period, but in the post-reform period, no significant impact was found on financial performance.

Disclosure reforms have made a significant impact on sustainability reporting by Indian companies. Companies need to identify the core areas of social responsibility, to implement Indian model of mandatory 2 per cent spending on corporate social responsibility. Disclosure of carbon foot prints should be mandatory and more number of independent directors should be appointed for successful implementation of these reforms. Market regulators should be made more powerful and given a free hand to prosecute the companies involved in frauds and high penalties should be imposed for non-compliance.

Sustainability reporting has drawn increased strategic attention in India to make reporting more transparent and responsible toward society and environment. The structural changes and introduction of disclosure reforms make an interesting case to investigate their implications on Indian companies. Accordingly, this research studies the sustainability reporting by Indian companies before and after the introduction of disclosure reforms. No previous research has investigated the impact of these reforms considering two different periods.

This paper aims to investigate the role of corporate governance on the bank profitability of Indian banks vis-à-vis South Asian Association for Regional Cooperation (SAARC) nations.

For the Corporate Governance Index, the authors examined board accountability, transparency and disclosure and audit committee, while Tobin’s Q, return on equity and return on assets are used to measure the bank’s profitability. The study used a two-stage analysis based on balanced panel data for robust findings. Sample of this study consists of 60 commercial banks from India and 60 banks from SAARC nations for the period of 2009–2021. This study used panel regression and a generalized method of moment approach using the CAMELS framework on banking industry-specific variables to determine their respective impacts.

The findings of this study suggest that board accountability is positive and significantly affects the profitability of banks as indicated by return on assets, return on equity and Tobin’s Q. In contrast, the audit committee has a positive and insignificant impact on return on assets, return on equity and Tobin’s Q, while transparency and disclosure have a negative and significant impact on these metrics. Furthermore, the country dummy result shows a significant positive impact on all the bank performance parameters, implying that Indian banks have the highest degree of convergence with corporate governance as compared to other SAARC nations.

This study provides insight to the regulators, policymakers and financial institutions to evaluate the role of corporate governance in emerging economies. However, the findings of the study should be interpreted with caution, as the results are sensitive to the disparity between India and other SAARC nations' government policies, climatic circumstances and cultural or religious traditions.

To the best of the authors’ knowledge, this is the first attempt to gauge the performance of Indian banks vis-à-vis SAARC nations using the CAMELS framework approach. Further, findings of this study suggest some novel evidence tying corporate governance quality with the profitability of banks among SAARC nations.

The purpose of this paper is to analyse time-series change of the competitiveness of leading companies of the sector based on their financial position regarding the period of financial crisis.

First, high level of revenue concentration was proved; consequently, strong competitive situation among few competitors was realised. Corporations having three common features (high amount of equity, high revenue and diversified product structure) were included in the sample. As the methodological background financial parameters were assigned to the definition of corporate competitiveness, and then comparative and comprehensive financial analysis of competitors was accomplished. Using relevant studies, liquidity based on balance sheets and cash flow statements, working capital processes, conventional and cash-flow based profitability were analysed.

It was proved that sample companies continuously improved the efficiency of working capital management indicated by the decrease of the average cash conversion cycle from 45 to 23 days. It was realised that there is a Hungarian-owned firm having outstanding financial performance; consequently, it has significant position among competitors. This company has further opportunity to increase its market share and competitiveness in the future. Finally, important characteristics of the sector were identified concerning the low level of technological improvements (the average ratio was below 3 per cent of the revenue), and unfavourable profitability processes.

In this paper, a separate analytic framework is established in view of the application of financial indicators to analyse competitiveness. This kind of analysis was not executed before in this sector.