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Copyright of Panorama Económico (1870-2171) is the property of Economic Panorama Magazine / Revista Panorama Economico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Scientific novelty of this study is determined by the fact that the assessment of the bank's competitiveness is carried out in the context of financial stability. In international financial organisations (which include banks), the financial stability of a bank is understood as an effective ability to distribute financial resources, ensure financial risk management (which is what banks do). This approach to determining the financial stability of a bank is also used in the study – the essence of financial stability reflects the state of financial resources and the degree of their use. Consequently, stability is also assessed through the balance of sources of flows of attracted financial resources, which are basic for the functioning of the bank and flows that determine the directions of use of such resources. The practical significance of the study is conditioned by the fact that the financial stability of a bank determines its ability to constantly develop, which is a gradual, dynamic movement in a competitive market within the framework of the chosen strategy.

This paper studies the impact of internal and external factors on the profitability and financial strength of insurance groups across the European Union, focusing on the effect of the European sovereign debt crisis and the Solvency II Directive, which has not been addressed by the literature. The findings reveal that the efficiency of accounts receivable management and the state of the economy have a significant positive impact, whereas the underwriting risk and size have a significant negative impact on profitability and financial strength. Furthermore, long-term interest rates exert a significant positive influence, whereas the purchase of reinsurance, size of the domestic market, market structure, and inflation exert a significant negative influence on profitability. The European sovereign debt crisis has a significant negative impact on profitability and a positive but insignificant impact on financial strength. Solvency II has no statistically significant impact either on profitability or on financial strength. This paper contributes to the literature through the identification of the impact of the European sovereign debt crisis and Solvency II, which has not been depicted so far, as well as the impact of a series of internal and external factors on profitability and, for the first time, on financial strength. [ABSTRACT FROM AUTHOR]

This study examined the relationship between financial strength, financial performance and firm’s value of multinational companies in Nigeria. The main objective of the study is to study the effects of financial strength and financial performance on firm’s value of a multinational company in Nigeria. This Study is based on signally theory. Secondary sources of data were sourced from Central Bank of Nigeria Statistical Bulletin and annual report of the selected multinational company in Nigeria. Ordinary Least Square Linear Regression model was used in analyzing the data. Findings show Quick Ratio (QR) has a significant positive relationship with firms’ values, Debt to Equity Ratio (DER) has a significant negative relationship with Firms’ values, Debt to Assets Ratio (DAR) has a significant positive relationship with Firms’ values while Cash Flow Ratio has a significant positive relationship with firms’ values as proxies for financial strength. Return on Capital Employed (ROCE) as proxy for financial performance has a significant positive relationship with firms’ values of multinational companies in Nigeria. The study concluded that, if multinational companies build strong financial strength to improve their financial performances, their market value would be sustained.

The aim of the research is to measure the indicators of financial strength, represented by (capital adequacy, liquidity and profitability), and to indicate the basic stages that the process of applying stress tests goes through, and to indicate its role in facing banking crises. The research community was represented by the Iraqi banking sector, while the research sample included a sample of (15) private Iraqi commercial banks for the period from (2015-2020). Through a review of the financial and statistical analysis of the totality presented by the research, a set of conclusions and recommendations was reached, the most important of which can be derived from two groups of banks. To provide its services in times of crisis due to its commitment to local and international standards, which are an integral part of the culture of the bank, while the second group is exactly the opposite. This was reflected in the crystallization of the research axis in reaching a recommendation that the importance of adhering to the application of stress tests, as well as urging banks to abide by the application of international standards issued by international organizations, including the Basel 3 Committee, as well as adherence to the instructions issued by the Central Bank as a barrier that provides safety for the prevention of future crises. [ABSTRACT FROM AUTHOR]

We show that a high degree of "double leverage" inside US insurance groups affects in a negative way their financial strength. Double leverage occurs when the parent firm finances the purchase of subsidiaries' equity using external debt proceeds, i.e., without changing its stand-alone capital. The previous evidence shows that the double leverage of US Bank Holding Companies leads the firms to become riskier (Bressan, 2018b) and less efficient (Bressan et al., 2021). While regulators give instructions for the assessment of double leverage inside banking groups, in the insurance sector this topic has not received enough attention from either regulators or scholars. This article aims to fill this lack of knowledge by using data from the balance sheets of US insurance groups during the years 2000-2021, showing that indicators for the solvency and the performance of insurers decrease significantly in measures of double leverage. These findings deliver important implications for future policymaking. As we analyze accounting data from consolidated balance sheets, we argue that regulators should more carefully consider whether consolidation rules are sufficiently informative about the financial stability of insurance groups. This is an important task in relation to the systemic relevance of insurance corporations. Finally, this article is a starting point for follow-up research testing, for example, the link of double leverage to captive insurance (Weterings, 2014) and reinsurance (Park & Xie, 2014; Bressan, 2018a). [ABSTRACT FROM AUTHOR]

This study examined the relationship between financial strength, financial performance and firm's value of multinational companies in Nigeria. The main objective of the study is to study the effects of financial strength and financial performance on firm's value of a multinational company in Nigeria. This Study is based on signally theory. Secondary sources of data were sourced from Central Bank of Nigeria Statistical Bulletin and annual report of the selected multinational company in Nigeria. Ordinary Least Square Linear Regression model was used in analyzing the data. Findings show Quick Ratio (QR) has a significant positive relationship with firms' values, Debt to Equity Ratio (DER) has a significant negative relationship with Firms' values, Debt to Assets Ratio (DAR) has a significant positive relationship with Firms' values while Cash Flow Ratio has a significant positive relationship with firms' values as proxies for financial strength. Return on Capital Employed (ROCE) as proxy for financial performance has a significant positive relationship with firms' values of multinational companies in Nigeria. The study concluded that, if multinational companies build strong financial strength to improve their financial performances, their market value would be sustained. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Research & Business Administration is the property of Al-Farabi Kazakh National University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The research focuses on measuring the profitability and financial soundness and evaluating their relationship and impact. The study aimed to measure and analyze financial strength using the profitability indicator and its impact on achieving financial Soundness. Ashur International Bank, National Bank of Iraq, Commercial Bank of Iraq, Gulf Commercial Bank) and the research started from a main hypothesis that (there is a significant effect of profitability on financial soundness in terms of its indicators of capital adequacy, quality of assets, liquidity), and the researchers used the statistical method to reach The results using the statistical program 10Eviews. The research concluded that profitability achieves financial soundness in the surveyed banks. The research also recommends investing in liquidity and achieving a balance between liquidity and profitability according to risk management. [ABSTRACT FROM AUTHOR]

Core competence is the key factor in the competitiveness of enterprises. This study examines whether enterprises with stronger core competence have the ability and motivation to fulfill more corporate social responsibilities. Taking the non-financial companies listed in the A-share market in China from 2010 to 2019 as the research samples, this paper constructs the measurement index of core competence by text analysis method and empirically tests the impact of core competence on corporate social responsibility. We find that the stronger the core competence is, the higher the corporate social responsibility will be, which means core competence can significantly improve corporate social responsibility. This conclusion remains significant after a series of robustness tests. The mechanism test shows that the impact of core competence on corporate social responsibility is realized by enhancing financial strength and increasing external attention. Further research shows that the relationship between core competence and corporate social responsibility are affected by the nature of the enterprise and the degree of market competition. When the enterprise is a non-state-owned enterprise or the industry competition is more intense, the influence of core competence on corporate social responsibility is stronger. This paper reveals the important impact of core competence on corporate social responsibility, which not only enriches the literature on the economic consequences of core competence and the influencing factors of corporate social responsibility but also has a certain practical significance for how to improve corporate social responsibility.

This paper examines the added value of using financial statement information, particularly that of Piotroski's (J Account Res 38:1, 2000. https://doi.org/10.2307/2672906) FSCORE, for equity portfolio selection in the German stock market in a realistic research setting in which the critique against the implementability of FSCORE-based trading strategies is taken into account. We show that the performance of annually rebalanced long-only portfolios formed on any of the examined 12 accounting-based primary criteria improves by including the FSCORE as a supplementary criterion. Our study is the first to show that although the FSCORE boost is strongest for the 1-year holding period length, it also holds, on average, for the 3-year holding period. The use of a 3-year updating frequency is particularly beneficial for the low-accrual portfolio that—when supplemented with the high-FSCORE threshold—generates the best overall performance among all 75 portfolios examined. Moreover, we show that a high FSCORE is also an efficient stand-alone criterion for long-only portfolio formation. [ABSTRACT FROM AUTHOR]

Predicting the bankruptcy of a company has led to several investigations. The use of financial ratios has been proposed as an indicator to measure the stability of a business unit. Altman developed a Z-Score model, which used organization's financial information to predict the probability of business failure 2-3 years in advance. The following work proposes the application of this model in Colombian companies to measure the probability of financial insolvency between the years 2016 and 2019. In order to fulfill the objective, the research was carried out under a quantitative approach. The results of the measurements show that the model can be applied as a predictive financial tool to measure the probability of financial insolvency of companies in Colombia. It can be concluded that Altman's Z model can be applied to Colombian business structures to predict financial emergency situations one, two and three years in advance. [ABSTRACT FROM AUTHOR]

The performance of the banking sector is significant for any economy. The growth of a nation relies significantly upon efficient and optimum utilization of resources and also on operational efficiency of various sectors of an economy, of which the banking sector is a critical part. Banking system strengthens the stimulation of capital formation and provides liquidity. Indian banking sector comprises private, public, rural and foreign banks. In India, public sector banks are encountering challenges from private sector banks and are under constant pressure to perform better. Hence, this study endeavors mainly to analyze and compare the financial performance of the private and public banking sector by using CAMEL rating approach and for this purpose total of fourteen banks, representing the private and public, have been selected. The selected sample are the market leaders and have the highest market capitalization in the capital market. Overall, the paper aims to measure and compare the financial performance of private and public sector banks by employing CAMEL approach on their audited financial reports of eight years period i.e. (2011–2018). The ratios considered for this analysis includes Capital Adequacy (CA), Asset Quality (AQ), Management Soundness (MS), Earnings and Liquidity (LR). This study devised ranking method based on averages of various ratios and one way annova test is applied to find out statistical significance difference amongst groups. Results shown that private sector banks are better performers compare to Public sector bank. The overall results signify that the performance of private sector banks has improved because of the implementation of modern technology banking reforms and recovery mechanism.

The aim of the research is to identify medium-sized agricultural enterprises with the greatest potential for innovation development. The subject of the research is the key financial performance of the observed enterprises in 2017. Data were obtained from official financial statements publicly available on the website of the Serbian Business Registers Agency (SBRA). The aim of the research was realized by applying financial analysis methods and the Altman Z-score model. The purpose of the research is to improve the efficiency of limited funds for financing innovative activities in the agricultural sector. The research results are data on enterprises with negligible probability of bankruptcy and which thus have the greatest potential for innovation development.

The performance of the banking sector is significant for any economy. The growth of a nation relies significantly upon efficient and optimum utilization of resources and also on operational efficiency of various sectors of an economy, of which the banking sector is a critical part. Banking system strengthens the stimulation of capital formation and provides liquidity. Indian banking sector comprises private, public, rural and foreign banks. In India, public sector banks are encountering challenges from private sector banks and are under constant pressure to perform better. Hence, this study endeavors mainly to analyze and compare the financial performance of the private and public banking sector by using CAMEL rating approach and for this purpose total of fourteen banks, representing the private and public, have been selected. The selected sample are the market leaders and have the highest market capitalization in the capital market. Overall, the paper aims to measure and compare the financial performance of private and public sector banks by employing CAMEL approach on their audited financial reports of eight years period i.e. (2011-2018). The ratios considered for this analysis includes Capital Adequacy (CA), Asset Quality (AQ), Management Soundness (MS), Earnings and Liquidity (LR). This study devised ranking method based on averages of various ratios and one way annova test is applied to find out statistical significance difference amongst groups. Results shown that private sector banks are better performers compare to Public sector bank. The overall results signify that the performance of private sector banks has improved because of the implementation of modern technology banking reforms and recovery mechanism. [ABSTRACT FROM AUTHOR]

Copyright of Scientific Proceedings of Ostroh Academy National University Series, Economics is the property of National University of Ostroh Academy and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research on central bank capital and credibility evolved from being an interest of developing countries to that of developed countries, following the 2008 global financial crisis. There is growing concern about central bank balance sheets at exit from quantitative easing. This paper surveys the literature in this context. It starts by citing early literature, which suggests that a central bank with insufficient capital may be pressured to pursue an inflationary policy at a time of crisis, thereby jeopardizing its credibility. A theoretical analysis of this problem is carried out using central bank budget constraints, and its intertemporal variant, leading to consideration of the solvency of the central bank. Several central banks make fiscal transfers to the government, and their solvency situation is influenced by whether they have fiscal transfers to and from the government or not. [ABSTRACT FROM AUTHOR]

This paper examines the moderating impact of capital structure on the relationship between government subsidy, strategic profitability and financial strength of state-owned enterprises in Indonesia. A purposive sampling is used and data were collected from seven state-owned enterprises over the period of 2005 to 2016. The empirical evidence provided by this paper indicates that government subsidy has a significant negative impact on the financial strength, which means that the state-owned enterprises are difficult to manage the company independently if the government continues to provide subsidies or additional capital. This study also found that strategic profitability has a significant positive impact on the financial strength, which means there are opportunities for management to perform profitability practice of earnings management as strategic to enhance the level of financial strength of the company. However, capital structure is strengthening the relations of ‘government subsidy’ and ‘real earnings management’ with the financial strength. So far, it is still little known how ‘capital structure’ affects the relationship between government subsidy and financial strength, specifically in the case of state-owned enterprises.

One of the main problems in the Iranian Banking industry is lake of a comprehensive and native model for assessing financial strength of Iranian banks. So the aim of this study is to develop a model to meet this problem. Banks financial strength deal with banks inherent safety and soundness. To design and develop the model, an initial conceptual model was developed by extensive study of various dimensions, factors and indicators of assessing banks financial strength and extraction of widely used of them. Then, this conceptual model validated and localized at three steps. In the first step, content validity of the model was tested by expert panel and some modifications was made in the model. In the second step, construct validity of the model was tested based on opinions of expert panel formed of faculty members, managers and experts in the field of banking and related capital market financial analysts. Finally in the third step, reliability of the model was tested. The final model which is constructed from 4 dimensions, 8 factors and 51 indicators can be used as a native and novel model for assessing the financial strength of Iranian banks. The results show that the dimension of financial position with weight of 32 percent has the most contribution in reflecting Iranian banks financial strength. After that, the competitive position, the management position and the risk position with weights of 26, 25 and 16 percent, respectively have next ranks.

One of the essential needs of Iranian financial market participants (including money market and capital market participants) is rating Iranian banks based on their financial strength. This rating helps stakeholders, including shareholders, investors, customers, central bank and etc., to obtain more accurate information regarding inherent safety and soundness of Iranian banks. The aim of this study is rating Iranian banks, based on financial strength, specifically those listed on the Tehran Stock Exchange (TSE) and Iran OTC market. All the banks were separated into two groups of privatized and non-governmental banks. The period of the research is 5 years from 2012 to 2016. For this purpose, first a financial strength score was determined for each of the banks using a reflective component-based model which includes 4 dimensions, 8 factors and 51 indicators, Then the banks were ranked based on their financial strength scores in two separate groups of privatized and non-governmental banks. The results show that privatized banks compared with non-governmental banks have higher financial strength scores. In the group of privatized banks, Mellat Bank had the highest score and hence the highest rank in terms of financial strength. In the group of non-governmental banks, Pasargad Bank, EN Bank and Parsian Bank, respectively had the highest scores and hence the highest ranks in terms of financial strength.

In this paper, we examine whether foreign institutional investors (FII) and mutual funds (MF) show a higher preference for fundamentally stronger firms. We employ Pitroski’s F score and its constituents (profitability, efficiency, and leverage) to measure the fundamental strength of firms. Further, we examine the preferences of FIIs and MFs by conditioning on size and book-to-market ratio. Overall, the results indicate that both types of institutional investors prefer firms with higher expected profitability and are willing to take higher risks. FIIs show a higher preference for riskier firms and MFs prefer firms with higher profitability.

The volume of waste produced is a major concern for Japan and has heightened the interest in waste management and recycling. This paper examines the factors that impact the municipal solid waste per capita and the recycle rate, applying panel data from 2001 to 2014 for each prefecture in Japan. The results first find that regions with a higher share of female population have a lower municipal solid waste per capita and a higher recycle rate, both at significant levels. The second finding is that a higher share of senior citizens population also has a significantly lower municipal solid waste per capita. On the other hand, the results show that higher gross domestic product and higher rate of educational attainment results in greater municipal solid waste per capita and lower recycle rate at a significant level. Results indicated that regions with robust financial indicators have significantly higher recycle rates. [ABSTRACT FROM AUTHOR]

In this paper, we examine whether foreign institutional investors (FII) and mutual funds (MF) show a higher preference for fundamentally stronger firms. We employ Pitroski's F score and its constituents (profitability, efficiency, and leverage) to measure the fundamental strength of firms. Further, we examine the preferences of FIIs and MFs by conditioning on size and book-to-market ratio. Overall, the results indicate that both types of institutional investors prefer firms with higher expected profitability and are willing to take higher risks. FIIs show a higher preference for riskier firms and MFs prefer firms with higher profitability. [ABSTRACT FROM AUTHOR]

In the article there are presented the features of the components that make up the economic capacity of the organization, improve the ability to deepen the analysis of their impact on the effectiveness of and prospects for stable development of the business entity in the new paradigm of economic development. Also, it the authors have developed the technique of evaluating the economic potential of the entertainment, through the application of the component approach and integrated rating. The complex analysis of the economic potential of "Istochnik" based on the proposed method of scoring production and financial potential of the company.

Paper is devoted to the method of increasing the banks through mergers and acquisitions. We propose a specific concept of merger. It is shown that this can be obtained economically significant results, including a substantial increase in capital and major key indicators of credit institutions.

We tested the reliability of different versions of the Z-score and CAMELS-based financial strength indices (aggregated from bank-level data) in detecting periods of banking crisis on a sample of 20 Central, Eastern, and Southeastern European (CESEE) countries during 1995-2014. We demonstrated that the predictive power of both types of accounting-based measures is weak. Our results cast some doubt on their usefulness in academic research and in the macroprudential monitoring framework for emerging economies. Thus, there is a need to strengthen the informational content of accounting data through more frequent and higher-quality data disclosures, including exposures allowing for analysis of interconnectedness and network effects for systemic banking risk monitoring. [ABSTRACT FROM AUTHOR]

A market-neutral strategy that is long [short] stocks with a high [low] Piotroski F-score generates an index-weighted 0.8 percent pm on S&P/ASX 200 stocks and 1.4 percent pm on smaller stocks. Equal-weighted returns are higher and in all cases returns are statistically significant. However, the Carhart model alphas are not statistically significant except in the case of equal-weighted small cap portfolios. For such portfolios, however, most of the alpha comes from the short side and most institutional investors would find them uninvestable due to capacity constraints. A range of tests indicate that analyst neglect does not explain the F-score premium. [ABSTRACT FROM AUTHOR]