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This research investigates (1) the impacts of working capital investment policy and working capital financing policy on firms’ performances (profitability and market value) and (2) the impact of profitability on market value. Data are gathered from 68 companies listed in the Stock Exchange of Thailand covering production sector. Data collected from 2012 to 2016 are analyzed using path analysis to measure the impacts of working capital policy on performances and examine the consistency of the model and the empirical data.

The model is found to be consistent with the empirical data; the probability level is 0.085, χ ²/df is 2.96, CFI is 0.951, GFI is 0.979, IFI is 0.957, and RMR is 0.004. The result reveals a statistically significant positive relationship between working capital investment policy and profitability. In addition, working capital investment policy affects market value through profitability as a mediator variable. However, there are significant negative impacts of working capital financing policy on profitability and market value. Overall, it can be implied that companies which adopt conservative working capital investment policy and conservative working capital financing policy can increase their profitability and market value.

The United Nations' sustainable development goals (SDGs) put together a global framework in an attempt to address environmental, social and governance (ESG) concerns. Measuring a company’s contribution to the SDGs relies heavily on ESG reporting. This paper aims to examine the impact of ESG reporting on the corporate profitability of listed companies in Thailand over the period of 2019–2021.

Using 147 listed firms in the ESG group, content analysis was used to quantify the ESG reporting (within 11 themes), while corporate profitability was measured by return on asset and return on equity. Descriptive analysis, correlation matrix and panel regression are used to analyze the data of this study.

Consistent with the legitimacy, stakeholder and signaling theories, the authors found a statistically significant and positive impact of ESG reporting on corporate profitability in Thailand.

The findings highlight the importance of incorporating ESG considerations into companies’ reporting and decision-making processes, as these can enhance firm profitability and performance, attract stakeholders, improve their competitive advantage and step toward sustainability.

The aim of the paper is to show how intelligence emanating from customer profitability analysis (CPA) can help improve strategic marketing planning. Insights into the profitability of individual customers, as well as the distribution of profitability across the customer base, can lead to better decisions in the areas of managing costs and revenues, managing risks and strategic market positioning.

The concept and process of CPA are first explained. The heart of the paper then discusses how the outcomes permit novel analyses related to costs and revenues, risk, and strategic positioning. Finally, the paper explains what is needed to make the shift from retrospective CPA to prospective CPA.

CPA delivers two types of insights: the degree of profitability for each individual customer, and the distribution of profitability among customers within the customer base. Profitability data at the level of the individual customer support better decision making about service levels, marketing investments and pricing strategies. The profitability distribution curve yields information about the vulnerability of future cash flows from customers. Further, DPA data permit segmentation and targeting on the basis of profitability and the development of different value propositions for different profitability segments.

Shareholder value is created through cash flows from customers. CPA uncovers where these cash flows are generated. Armed with customer profitability data, marketers can really develop and implement value‐driven differentiated customer service strategies.

While quite a number of published papers have discussed the technicalities of calculating customer profitability, this paper adds to the literature an overview of how the outcomes of such calculations can help planners make better decisions, to increase the magnitude of cash flows from customers and/or reduce the volatility and vulnerability of such cash flows.

The purpose of this paper is to describe development of Russian mutual fund (MF) market, to suggest and apply methodology of statistical analysis of management quality, to evaluate profitability and risks of the market. Design/methodology/approach – Statistical research applies: descriptive statistics, correlation analysis, regression analysis, cluster analysis, ratings, transition probability, optimal portfolio theory.

Russian mutual market is growing both in number and in aggregate value of net assets. Profitability and risks of the market are high.

Statistical research was fulfilled on the data for 2004‐2006.

The results of the investigation are useful for investors and for managers of the funds.

The paper represents an attempt of statistical investigation of Russian MF market, its profitability and risks, classification and rating of MFs and analysis of rating stability.

This paper aims to revisit the relationship between sales growth and profitability by exploring the direct and indirect effects of cost stickiness in the growth process. Cost stickiness refers to asymmetric variations of costs associated with increases and decreases in sales. Cost stickiness is analyzed as a strategic liability that negatively affects profitability because it contributes to organizational rigidity that causes opportunity costs.

The empirical design is based on a large sample of 65,599 French firms drawn from the Amadeus database and it covers the period 2010 to 2019. The authors take advantage of the presentation of expenses made by nature in Amadeus to calculate cost stickiness in a more direct way than what is commonly done in the literature. The authors use various regression models to test the hypotheses.

For firms that experience rapid growth in sales, cost stickiness has a positive moderating effect on the relation between sales growth and profitability because of a higher asset turnover efficiency. However, for firms that experience slow growth, no growth or a decrease in sales, cost stickiness plays a negative moderating effect on the relation between sales and profitability.

This work contributes to the discussion about the conditions under which high growth is associated with greater profitability and conceptualizes cost stickiness as a strategic liability. The empirical context, privately held firms, has been overlooked by previous research.

This paper examines how the determinants of bank performance and profitability were affected by the recent systemic banking crisis. We explore the contemporaneous determinants of U.S. regional banks’ performance and profitability before, during, and after the crisis years.

We analyze the determinants of three measures of profitability: return on assets, return on equity, and net interest margins.

We found evidence of lowered bank profitability, credit quality, and scale of lending activities well after the defined crisis period. This coincides with historical evidence that downturns associated with a financial crisis are more severe than downturns due to short-run fluctuations in the business cycle. Banks responded to the crisis by increasing their equity and liquidity levels.

This paper is the first to compare the determinants of bank profitability during the precrisis, crisis, and postcrisis periods. Our study extends previous work by using data from U.S. banks, adding coverage of the years since the banking crisis ended, and considering profitability determinants not previously explored in studies on the effects of the crisis.

This study examines the role of industry competition, market capitalization, and debt levels in the relationship between profitability and firm value (FV). The sample included companies listed on the Indonesia Stock Exchange (IDX) in the manufacturing sector in 2017–2019. This study provides empirical evidence that the high level of industrial competition (IC), low level of market capitalization (market value of equity, MVE), and high levels of debt (debt-to-assets ratio, DAR) weaken the effect of profitability as measured by return on assets (ROA) on FV as measured by Tobin’s Q. Profitability is not even related to FV for firms facing high industry competition. In addition, profitability only has a marginal positive relationship with FV for firms with relatively small market capitalizations. These findings suggest that the relationship between profitability and FV is not monotonous but is influenced by the level of industry competence, market capitalization, and debt.

This study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption.

Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results.

The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan.

The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future.

This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between savers and borrowers, these institutions operate in a dynamic and complex environment characterised by various risk factors that can significantly impact their profitability and overall stability. Understanding the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability is crucial for effective risk management strategies and the development of appropriate regulatory frameworks.

Purpose: Commercial banks play a critical role in the global economy by facilitating economic growth and providing financial services. This study examines the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability in commercial banking.

Methodology: The sample consists of licenced scheduled commercial banks on the Bombay Stock Exchange (BSE) from 2015 to 2022. Using the Smart PLS-SEM 3.0 path analysis technique, the study evaluates the combined influence of these risk factors on profitability and provides evidence-based recommendations for risk management strategies.

Findings: The findings can assist banks in enhancing their risk management practices, and regulators in developing appropriate regulatory frameworks. By understanding the key risk factors and their impact on profitability, banks and regulators can mitigate risks, enhance transparency, and promote stability within the banking sector.

Significance/value: The value of this study lies in its focus on the interconnectedness of risk factors, profitability, and the potential implications for decision-making, risk management strategies, regulatory frameworks, and the overall stability of the commercial banking sector.