Search results

1 – 10 of over 21000
To view the access options for this content please click here
Article

Richard Dobbins

Sees the objective of teaching financial management to be to helpmanagers and potential managers to make sensible investment andfinancing decisions. Acknowledges that…

Abstract

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

Details

Management Decision, vol. 31 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Book part

Dan Harris and Judith Cassidy

Companies that adopt lean operations and lean accounting ultimately should achieve better profitability and cash flows than similarly situated companies that do not adopt…

Abstract

Purpose

Companies that adopt lean operations and lean accounting ultimately should achieve better profitability and cash flows than similarly situated companies that do not adopt lean operations and lean accounting.

Methodology

Archival data is analyzed through Wilcoxon signed-ranks, matched-pairs tests.

Findings

Lean companies had greater returns on net operating assets (RNOA), returns on total assets (ROA), operating cash flows, and cash-adequacy ratios than Non-Lean companies. These results were driven by the larger Lean companies. The profit margins and financing-assets ratios also were marginally better for the Lean companies than the Non-Lean companies.

Implications

Lean companies have achieved benefits proposed by the proponents of lean operations. The present study provides a starting point for further research on the financial performance of Lean companies using archival data.

Originality/value

There is limited research on the financial performance of Lean companies that is based on archival data. The present study fills a void in the academic literature. This study measures RNOA, which does not confound operating and financing activities. Additionally, this study utilized a methodology that provides reasonable assurance of the identification of both Lean companies and Non-Lean companies from publicly available data.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78190-842-6

Keywords

Abstract

Details

The Banking Sector Under Financial Stability
Type: Book
ISBN: 978-1-78769-681-5

To view the access options for this content please click here
Article

Joel R. Evans

To empirically study the performance of large retailers in terms of the strategic profit model and the retail performance index over time.

Abstract

Purpose

To empirically study the performance of large retailers in terms of the strategic profit model and the retail performance index over time.

Design/methodology/approach

This study looks at how well the largest public US retailers performed financially from 1982 to 2001. Several measures are employed, including sales and profit growth, profit margins, asset turnover, return on assets, financial leverage, and return on net worth. The performance of Wal‐Mart is broken out.

Findings

As a group, the largest public US retailers have not performed very well across a number of measures. They have not been “high performers.” Wal‐Mart has outperformed other very large retailers for virtually every financial measure. It has been a “high performer” by not losing its edge as it has grown.

Research limitations/implications

Only public retailers were included in the study. Retailers reported financial data using different fiscal years. The federal government converted its data from SIC to NAICS codes during the time frame of the study; the data were converted based on a model from Retail Forward.

Practical implications

As the largest firms seek to heighten their marketplace concentration, they have to be careful not to fall into a growth trap. They need to be more devoted to driving up their financial performance.

Originality/value

The paper reports the results of a comprehensive longitudinal study of the largest public retailers, and focuses on applying two under‐researched retail performance tools: the strategic profit model and the retail performance index.

Details

International Journal of Retail & Distribution Management, vol. 33 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Abstract

Details

Handbook of Transport Strategy, Policy and Institutions
Type: Book
ISBN: 978-0-0804-4115-3

To view the access options for this content please click here
Article

Mary Fischer and Treba Marsh

The ability of financial statement users, investors, donors and academic researchers to compare financial information issued by nonprofit universities, hospitals…

Abstract

The ability of financial statement users, investors, donors and academic researchers to compare financial information issued by nonprofit universities, hospitals, fund-raising organizations and government agencies is affected by their understanding of current accounting recognition and reporting guidance. Public nonprofit organizations report different financial results from private nonprofit organizations. This study looks at the events that brought about the divergence in nonprofit financial accounting recognition and reporting for higher education institutions, discusses specific differences, and offers a look at additional changes in recognition and reporting for the sector currently underway.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 24 no. 3
Type: Research Article
ISSN: 1096-3367

To view the access options for this content please click here
Article

Madhav Regmi and Allen M. Featherstone

The number of US commercial banks has declined by about 50% over the last two decades. This change could lead to a potential decline in competition and a potential…

Abstract

Purpose

The number of US commercial banks has declined by about 50% over the last two decades. This change could lead to a potential decline in competition and a potential increase in market power in the agricultural banking market. The focus of this study is to examine whether the risk of failure and the performance of agricultural banks has been affected by bank consolidations.

Design/methodology/approach

The impact of bank competition on performance and financial stability of agricultural banks is studied using a Lerner index as a measure of market power. A Z-score is constructed to measure bank stability. Similarly, the return on assets (net income to total assets ratio), return on equity (net income to the total equity ratio), agricultural loan ratio and agricultural loan volume are used as performance measures for agricultural banks. Two-way fixed effect regression models are estimated to measure the impact of competition on financial stability and performance.

Findings

Results indicate that bank competition has a U-shaped effect on the probability of default and an inverted U-shaped effect on volume and proportion of agricultural lending. There also exists evidence of a positive but non-linear effect of bank market power on the profitability of agricultural banks.

Originality/value

There is limited literature on the impact of bank competition on financial stability and performance of US agricultural banks. Agricultural banks hold more than 40% of US farm debt. A decrease in the number of banks or the level of competition in agricultural banking may cause an adverse effect on relationship lending. The key findings imply that bank regulatory strategies should focus on enhancing (reducing) competition in more (less) concentrated banking markets to improve the financial health and performance of agricultural banks.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

Keywords

To view the access options for this content please click here
Article

Mine Aysen Doyran

This paper aims to examine the relationship between performance and some macro and micro variables in the Argentine commercial banking industry. Included are the…

Abstract

Purpose

This paper aims to examine the relationship between performance and some macro and micro variables in the Argentine commercial banking industry. Included are the profitability and interest variables; return on assets (ROA) and net interest margin (NIM) over the period of 1994 to 2011.

Design/methodology/approach

The empirical construct is guided by recent theories of banking performance that employ an industrial organization framework and two dependent variables (with identical control variables) to assure robustness and comparability in findings. The variables for the panel estimated generalized least square (panel EGLS) are constructed using income statements of 62 commercial banks (firm‐level data) as well as a number of industry‐specific and macroeconomic indicators.

Findings

Factors such as expense management (operating cost efficiency/inefficiency), leverage and liquidity appear to be important forces behind the net interest margins (NIM) and profits (ROA) in the Argentine banking industry. Higher return on assets (ROA) is associated with banks carrying less leverage and therefore displaying a lower ratio of debt to total assets. Higher interest margin (NIM) is associated with higher operating expenses. Regarding the macroeconomic variables, inflation negatively affects profitability but is positively and significantly related to net interest margin. Banking environment has a positive effect on performance, reflecting the complementarity between banking performance and stock market capitalization.

Originality/value

The paper's value lies in showing that a firm's specific variables reveal better insights when analyzed in relation to banking environment. Indirectly, some of the value of this work lies in highlighting the Central Bank's accommodative monetary policy that has been driving Argentina's economic recovery and credit boom arising in an inflationary environment.

To view the access options for this content please click here
Article

John P Evans and Robert T Evans

Drawing from earlier work and market sentiment, two non‐mutually exclusive hypotheses were framed to test the proposition that share repurchase programs are a performance…

Abstract

Drawing from earlier work and market sentiment, two non‐mutually exclusive hypotheses were framed to test the proposition that share repurchase programs are a performance improving strategy. To achieve the above, a large sample of companies that repurchased shares is compared to a matched sample of companies not pursuing a share repurchase strategy. The comparative analysis covers numerous time intervals. In comparing the accounting performance of repurchasing companies to that of non‐repurchasing companies, Return on Assets (ROA), Return on Equity (ROE), Return on Sales (ROS), Book‐to‐Market (B/M), Earnings per Share (EPS), and Sustainable Growth Rate (SGR) are applied. The primary conclusion drawn from the performance of these indicators is a high degree of difference in the performance of repurchasing and non‐repurchasing firms. There is also evidence to suggest, at least in the aggregate repurchasing sample, that the performance of repurchasing companies fails to significantly improve in the post announcement period.

Details

Asian Review of Accounting, vol. 9 no. 2
Type: Research Article
ISSN: 1321-7348

To view the access options for this content please click here
Article

Leena Afroz Mostofa Chowdhury, Tarek Rana and Mohammad Istiaq Azim

The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the…

Abstract

Purpose

The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the pharmaceutical sector in Bangladesh, an emerging economy that enjoys Trade-Related Aspects of Intellectual Property Rights (TRIPS) relaxation.

Design/methodology/approach

The study used hand-picked data from annual reports for five years. The relationship between efficient use of intellectual capital and corporate performance was examined through the practical use of human capital, structural capital and capital employed. Multiple regressions were used to assess their impact on financial performance – specifically, return on assets, return on equity, asset turnover and market-to-book value.

Findings

Value-added intellectual coefficient components (i.e. human capital, structural capital and capital employed) significantly explained asset turnover and return on assets but failed to predict the return on equity outcome. Additionally, asset turnover was negatively influenced by structural capital and positively influenced by capital employed. The return on assets was mostly affected by variation in human capital. Intellectual capital did not predict market-to-book value or investment decisions.

Practical implications

This paper provides useful resources for evaluating the financial performance and value creation of companies in emerging economies that enjoy TRIPS exemptions; this research could also be extended using cross-industry comparisons. The findings have theoretical and practical implications, particularly for the pharmaceutical industry in emerging economy contexts, and for managers globally.

Originality/value

This study is among only a few that have reported on the relationship between intellectual capital efficiency and value creation in emerging economy contexts.

1 – 10 of over 21000