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Taking advantage of the implementation of the 2003 European Commission (EC) directive on financial reporting, we explore the impact of mandatory financial disclosure on mergers and acquisitions (M&A). We find robust evidence that the number (and volume) of private firms becoming an M&A target increases with mandatory disclosure. Analyses of cross-industry differences, deal-level data, and post-deal performance indicate that financial disclosure increases M&A activity by reducing information frictions in the market for corporate control. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

This paper examines whether the cross-section of cryptocurrency returns is captured by risk factors based on consumption-based asset pricing. It is an imperative task for financial economists to find the fundamental risk behind characteristic-based cryptocurrency factors in order to economically understand cryptocurrency. To address the data availability issue in the analysis of cryptocurrency, we employ mixed data sampling (MIDAS) regression to check the relation between the principal component analysis (PCA) factors in cryptocurrency returns and the factors in the consumption capital asset pricing models (CCAPMs) and intertemporal capital asset pricing models (ICAPMs). We establish significant links between them, which in turn implies that cryptocurrency returns are investors' compensation for bearing consumption risk, conditional consumption risk, and intertemporal consumption risk. This finding underscores that cryptocurrency returns are the manifestation of macroeconomic equilibrium derived from investors' utility maximization. [ABSTRACT FROM AUTHOR]

We are examining the impact of benefit corporation certification on the profitability of UK companies, taking into account their capital structure. We contribute to the literature that scrutinizes the financial ramifications of Benefit Corporation Certification. Analyzing UK Certified Benefit Corporations (CBCs) and their noncertified counterparts using a difference‐in‐differences analysis, we find that the performance of CBCs with a capital structure heavily weighted towards debt declines in comparison to non‐CBCs, using Return on Assets as a measure of financial performance. Conversely, the performance of CBCs with a capital structure primarily composed of equity is comparable to that of non‐CBCs. [ABSTRACT FROM AUTHOR]

Most studies have found that the Covid‐19 pandemic did not negatively impact the euro area banking industry's performance at an aggregate level. This study explores whether this finding still holds using the return on assets of 16 banking groups operating in the euro area and considering bank‐specific factors, idiosyncrasies related to different exposures of their portfolios to the business cycle and weaknesses stemming from underlying structural vulnerabilities. The banking groups are classified into clusters using unsupervised learning techniques. This research contributes to the empirical literature on the determinants of banks' performance by highlighting the importance of banks' heterogeneity, notably controlling for differential performance due to asset quality, solvency and business model. In addition, this paper shows that the magnitude of return on assets' exposure to the business cycle varies across banks and that inflation in the euro area matters only for a subset of them. Importantly, the study sheds some light on the possible reasons for the mixed results in the literature regarding the role of non‐interest income, the T1 capital ratio and inflation. Finally, no significant effects of the Covid‐19 variables on banks' return on assets are found during the first seven quarters of the pandemic. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to analyze the connectedness between the natural gas, wheat, gold, Bitcoin and Gulf Cooperation Council (GCC) stock indices with the advent of exogenous and unexpected shocks related to the health and political crises. Design/methodology/approach: For this end, a quantile-based connectedness method is applied on returns of different assets during the period 01/01/2016–05/01/2024. Findings: The empirical findings display that the existence of time-varying connectedness between markets is well-documented and seems to be stronger during the COVID-19 pandemic and the Russia–Ukraine war. The connectedness is fostered with extreme events, showing that shocks propagate increasingly during turbulent periods compared with calm ones. The connectedness is event-dependent. Practical implications: The empirical results offer insightful information for policymakers and investors about the contagion effect and volatility spillover among GCC stock markets and other asset classes during different crises. Originality/value: This study examines different asset classes' dynamism connection with sock prices in the GCC countries to better apprehend the (dis)similarities between different asset classes in terms of information transmission. It also investigates the connectedness structure among different asset classes under extreme market conditions and how spillover effects across GCC markets and other ones can be time- and event-dependent. [ABSTRACT FROM AUTHOR]

The most important goal of revaluation is providing reliable fair price information close to economic realities for different decision-makers. Emphasising conservatism, this research comparatively studies the relationship between book values of assets concerning the performance indicators of companies. The statistical population of the research includes 146 companies listed on the Tehran Stock Exchange from 2009 to 2020. The research methodology is correlational and post-event causal, and the correlation and regression tests are used to test hypotheses. The results show a significant direct relationship between the book value of assets and the rates of return on assets and equity. In addition, conditional conservatism significantly negatively affects the relationship between the asset value after revaluation and the future cash flows. It also has a significant positive effect on the relationship between the book value of assets and the rate of return on assets. [ABSTRACT FROM AUTHOR]

The aim of this article is to examine which selected internal factors influence the profitability (ROA) of companies in the energy sector in Poland and how they do so, over the period 2018–2021, taking into account two groups: all types of activities (984 companies) and electricity production (508 companies). This study uses Pearson correlation analysis, Wilcoxon pairwise rank test, descriptive statistics and multiple linear regression to build eight ROA econometric models, four for each group. The research shows that in the energy sector, in particular, variables relating to the capital structure (total equity/total assets, long-term liabilities/total assets, short-term liabilities/total assets and long-term liabilities/short-term liabilities ratios) have a statistically significant impact (positive or negative) on the profitability (ROA). The aforementioned ratios appear in various combinations in all eight ROA models. The use of equity to finance the activities of companies in this sector seems to be particularly beneficial, as the total equity/total assets ratio occurs in as many as seven out of eight models and, moreover, it always has a positive impact on the ROA. The remaining analyzed variables relating to the structure of assets (fixed assets/total assets ratio), financial liquidity (current ratio) and the age of the company appear in the models as statistically significant quite rarely, having a different impact on the ROA (positively or negatively). However, variables such as the fixed assets/current assets and total liabilities/total equity ratios do not have a statistically significant impact on the ROA at all in any of the studied groups of enterprises. The research results suggest that managers, in order to shape profitability (measured by ROA), should pay special attention to the capital structure, i.e., the proportions of the use of equity, long-term liabilities and short-term liabilities to finance the operations of energy companies as these independent variables appear most often in ROA models. Other analyzed factors, such as the assets structure (the share of fixed assets in total assets) or financial liquidity, also have an impact on the return on assets; therefore, their use in energy companies should also be considered. Moreover, the research shows a large diversity of factors shaping ROA in econometric models, the way they affect the dependent variable (positive or negative) and the degree of model fit (R2), both in individual years and in the two groups of companies studied. This proves that it is not possible to clearly and finally determine which factors and how (positive or negative) they affect the profitability. This influence can change over time depending on the circumstances, which indicates the need for the continuous involvement of decision makers in the management process and making decisions based on reliable and appropriate-to-the-situation analyses. [ABSTRACT FROM AUTHOR]

The study aims to analyze the impact of board size, number of non-executive Directors on Board, and Size of the Audit Committee on Return on Assets (ROA) and Tobin’s Q on banks listed on the Indonesian Stock Exchange between 2019 and 2022. The research method used is descriptive statistical analysis and regression test on a sample of 11 banking companies in Indonesia. The data used included relevant variables such as board size, non-executive director composition, audit committee size, ROA, and Tobin’s Q. The results of the analysis show that board size has a significant influence on ROA. However, board size had no significant influence on Tobin’s Q. Furthermore, the number of non-executive directors on board also proved to have a significant influence on ROA. However, the number of non-executive directors on board did not have a significant influence on Tobin’s Q. In addition, the size of the udit Committee also proved to have a significant influence on ROA and Tobin’s Q. The larger size of the Audit Committee provides more effective supervision, better risk management, and transparency in financial reporting, which has a positive impact on the company’s financial performance and market assessment. These findings have important implications that other factors, such as business strategies, risk management policies, or broader external factors, may also influence the company’s performance. [ABSTRACT FROM AUTHOR]

In the highly competitive landscape of global markets, companies must continually enhance their performance and bolster their competitive edge. Mergers and acquisitions (M&A) have become a common strategic choice to help firms strengthen their market position, create synergies, and boost profitability. This study seeks to analyze the impact of mergers and acquisitions on the financial performance of companies listed on the Indonesia Stock Exchange. Data were collected using purposive sampling, resulting in a sample of 30 companies based on specific criteria. Financial performance was evaluated through financial ratios, including Return on Assets (ROA), Current Ratio (CR), and Debt to Asset Ratio (DAR). For analysis, this research employs the T-test for mean differences and the Wilcoxon signed-rank test. Findings indicate that for companies engaging in M&A activities from 2020 to 2022, comparing the financial indicators one year before and one year after M&A reveals no significant differences in profitability (ROA), liquidity (CR), or solvency (DAR) [ABSTRACT FROM AUTHOR]

The purpose of this study is to test whether the accrual-based variable or the cash-based variable is more effective in determining firm value by using accrual and cash-based variables. For this purpose, data obtained from the financialstatements of 36 manufacturing firms operating in Borsa Istanbul (BIST) between 2010 and 2020 are used. Generalized Method of Moments (GMM) Dynamic Panel method was applied in the study. As a result of the analysis, it is found that net profit quality, sales quality and cash return on fixed assets have a positive and significant effect on firm value. However, cash debt coverage and working capital cash return have a negative and significant effect on firm value. However, operating cash flow (operating), operating cash flow (financing), cash interest coverage and equity cash flow ratios have no significant effect on firm value. In addition, according to the results of the analysis of the relationship between accrual-based financial ratios and firm value, asset turnover, inventory turnover, earnings per share and asset growth ratios were found to have a significant effect on firm value. In addition, asset turnover and inventory turnover ratios have the largest effect on firm value, respectively. When the relationship between accrual-based and cash-based ratios used in this study and firm value is compared, it is seen that cash-based ratios are more effective in explaining firm value. In addition, it has been determined that the use of accrual and cash-based ratios together in determining firm value is more successful than using them individually. [ABSTRACT FROM AUTHOR]

This study aims to analyze the influence of intellectual capital on financial performance in the banking sector listed on the Indonesia Stock Exchange (IDX), with Return on Assets (ROA) as the leading indicator. Intellectual capital is measured using Value Added Intelle ctual Coefficient (VAIC), which consists of three components: Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). The quantitative method is used with secondary data from the annual financial statements of banking companies for the period 2018-2022. The sample consisted of 15 banks selected through the purposive sampling technique. The results of the regression analysis show that VACA, VAHU, and STVA have a significant and positive influence on ROA, which shows that investment in intellectual capital plays a vital role in improving bank profitability. These findings have implications that banks can prioritize human and structural capital development to enhance financial performance. The recommendatio ns of this study include further exploration of the long-term impact of intellectual capital on various economic conditions. [ABSTRACT FROM AUTHOR]

This study aims to analyze the influence of financial performance on investment policies in telecommunication companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. In this study, four main financial ratios, namely Current Ratio (CR), Debt-to-Equity Ratio (DER), Return on Assets (ROA), and Working Capital Turnover (WCT) are used as independent variables to measure their impact on the company's investment policy. The data used is sourced from the company's annual financial statements available on the IDX. The analysis method used is multiple linear regression to see the relationship between financial variables and investment policy. The results show that the Current Ratio has no significant influence on investment policy and Return on Assets has a positive and significant influence on investment policy, while the Debt-to-Equity Ratio shows a significant positive influence. Working Capital Turnover does not have a significant influence on investment policy. This finding provides practical implications for company management in designing optimal investment policies based on the company's financial performance. [ABSTRACT FROM AUTHOR]

This research aims to determine the effect of capital intensity, inventory turnover (ITO), and return on assets (ROA) on the effective tax rate (ETR) with institutional ownership as a moderating variable. This research uses secondary data in the form of financial reports that have been audited by auditors, where the data was obtained from the official website of the Indonesia Stock Exchange (IDX) at idx.co.id. The sampling technique used in this research is the purposive sampling method. The population in this research is property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021, totaling 9 companies. The sample used in this research was 41 companies with 123 observation data, taken based on certain criteria. This research is quantitative research with secondary data sources including the company's annual financial reports obtained through the website www.idx.co.id and the official website of each company. The method used to analyze the influence of independent variables on the dependent variable in this research is multiple linear regression analysis using SPSS 26. The results of the research show that Return on Assets and Inventory Turnover (ITO) have a positive and significant effect on the Effective Tax Rate, while Capital Intensity has a negative effect. However, it is not significant to the Effective Tax Rate for property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) in 2019-2023. Institutional ownership can moderate the influence of Capital Intensity, Return on Assets, and Inventory Turnover (ITO) on the Effective Tax Rate in property and real estate sector companies listed on the Indonesia Stock Exchange (IDX). [ABSTRACT FROM AUTHOR]

Financial economists have long studied factors related to risk premiums, pricing biases, and diversification impediments. This study examines the relationship between a firm's commitment to environmental, social, and governance principles (ESGs) and asset market returns. We incorporate an algorithmic protocol to identify three nonobservable but pervasive E, S, and G time-series factors to meet the study's objectives. The novel factors were tested for information content by constructing a six-factor Fama and French model following the imposition of the isolation and disentanglement algorithm. Realizing that nonlinear relationships characterize models incorporating both observable and nonobservable factors, the Fama and French model statement was estimated using an enhanced shallow-learning neural network. Finally, as a post hoc measure, we integrated explainable AI (XAI) to simplify the machine learning outputs. Our study extends the literature on the disentanglement of investment factors across two dimensions. We first identify new time-series-based E, S, and G factors. Second, we demonstrate how machine learning can be used to model asset returns, considering the complex interconnectedness of sustainability factors. Our approach is further supported by comparing neural-network-estimated E, S, and G weights with London Stock Exchange ESG ratings. [ABSTRACT FROM AUTHOR]

In recent years, fused lasso models are becoming popular in several fields, such as computer vision, classification and finance. In portfolio selection, they can be used to penalize active positions and portfolio turnover. Despite efficient algorithms and software for solving non-smooth optimization problems have been developed, the amount of regularization to apply is a critical issue, especially if we have to achieve a financial aim. We propose a data-driven approach for learning the regularization parameters in a fused lasso formulation of the multi-period portfolio selection problem, able to realize a given financial target. We design a neural network architecture based on recurrent networks for learning the functional dependence between the regularization parameters and the input data. In particular, the Long Short-Term Memory networks are considered for their ability to process sequential data, such as the time series of the asset returns. Numerical experiments performed on market data show the effectiveness of our approach. [ABSTRACT FROM AUTHOR]

Identifying the effects of quantitative easing (QE) on asset return correlations is critical to assessing such policies' impact across financial markets. In this paper, we use a dynamic conditional correlation model that allows us to measure the impact of unconventional monetary policy on time‐varying correlations. Our results suggest that QE significantly affected correlations between stocks and bonds after the Great Recession via short‐term portfolio balance effects. The findings are critical for policy‐makers and practitioners alike. Central banks should consider the impact of monetary policy on asset correlations in their cost–benefit analyses. Likewise, portfolio managers are encouraged to factor in the effects of monetary policy on correlations to optimize portfolios and reduce potential losses strategically. [ABSTRACT FROM AUTHOR]

This article extends the socially responsible multiobjective problem to (i) estimating optimal portfolios via reward/risk maximization, (ii) including dependence structure between asset returns using vine copulas, and (iii) incorporating enhanced indexation utilizing cumulative zero-order stochastic dominance (CZϵSD). Applying the multiobjective optimal portfolio (MOOP) approach to a sample of EuroStoxx 50 constituents, the results show that the MOOPs provide investors with the flexibility to incorporate different objectives while investing in optimal portfolios. Including social responsibility results in lower portfolio return and economic performance, but at the same time portfolio risk, expected shortfall of portfolio returns below the benchmark, and turnover are reduced. The copula-based predictive models lead to MOOPs with higher returns and reward/risk ratios. Moreover, optimizing environmental scores leads to less risky MOOPs, while optimizing social scores results in higher average return and better risk-adjusted performance. [ABSTRACT FROM AUTHOR]

Copyright of Arab Journal for Scientific Publishing is the property of Research & Development of Human Recourses Center (REMAH) 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 COVID-19 outbreak caused a massive setback to the stability of financial system due to emergence of several other risks with COVID, which significantly influenced the continuity of profitable banking operations. Therefore, this study aims to see that how differently the liquidity risk and credit risk influenced the banking profitability during Covid-19 (Q12020 to Q42021) than before COVID (Q12018 to Q42019). The study employs pooled OLS, and OLS fixed & random effects models, to analyze the panel data on a sample of 37 banks currently operating in Pakistan. The results depict that liquidity risk has a positive and significant relationship with return on assets and return on equity, but insignificant relationship with net interest margin. Credit risk has a negative and significant relationship with return on assets, return on equity, and net interest margin. The study also applies quantile regression to address the normality issue in data. The quantile regression results are consistent with pooled OLS, and OLS fixed and random effects results. The study makes valuable suggestions for regulators, policymakers, and others users of financial institutional data. The current study will help to set policies for efficient management of LR and CR. [ABSTRACT FROM AUTHOR]

Stress testing refers to the application of adverse financial or macroeconomic scenarios to a portfolio. For this purpose, financial or macroeconomic risk factors are linked with asset returns, typically via a factor model. We expand the range of risk factors by adapting dimension-reduction techniques from unsupervised learning, namely PCA and autoencoders. This results in aggregated risk factors, encompassing a global factor, factors representing broad geographical regions, and factors specific to cyclical and defensive industries. As the adapted PCA and autoencoders provide an interpretation of the latent factors, this methodology is also valuable in other areas where dimension-reduction and explainability are critical. [ABSTRACT FROM AUTHOR]

The share prices of mining companies included in the LQ 45 Index are unstable because they experience increases and decreases from 2018 to 2023 (5 years). If the other independent variables remain constant, each increase is one unit Debt to Equity Ratio will reduce share prices -0.643. Then influence Total Asset Turnover to Share Prices in Mining Companies that are members of the LQ 45 Index for the 2018-2023 period is a significant and positive influence. If the other independent variables remain constant, each increase is one unit Total Asset Turnover will increase the share price by 0.453. Furthermore, the influence of ROA (Return On Asset) to Share Prices in Mining Companies that are members of the LQ 45 Index for the 2018-2023 period is a significant and negative effect. If the other independent variables remain constant, each increase is one unit Total Asset Turnover will lower the Share Price 1,060. and Current Ratio, Debt to Equity Ratio, Total Asset Turnover, ROA (Return On Asset) simultaneous significant effect on share prices in Mining Companies that are members of the LQ 45 Index for the 2018-2023 period with a percentage of 79% means that it is 79% Current Ratio, Debt to Equity RatiO,Total Asset Turnover and ROA (Return On Asset) to Stock Price and the rest 21% influenced by factor other than the variables studied. [ABSTRACT FROM AUTHOR]

This study aims to test and analyze the effect of investment opportunity set, capital structure, dividend policy, and profitability on firm value. Another objective to be achieved is the effect of capital structure and dividend policy on firm value mediated by profitability. Our research uses path analysis to determine and analyze the influence of exogenous variables on endogenous variables. The objects in this study are companies incorporated in LQ45 for the period 2012 - 2021. The results of the study found that the price earning ratio, capital structure with indicators of debt to asset ratio and debt to equity ratio, dividend payout ratio, and return on assets all have a positive and significant direction of influence on price to book value. Debt to equity ratio has a significant positive direction of influence on return on assets, while debt to asset ratio has the opposite direction, namely negative and significant to return on assets. What is different from the results of this test is that the dividend payout ratio, although the direction of influence is positive on return on assets, is not significant. Return on assets is not able to mediate the effect of debt asset ratio, debt to equity ratio, and dividend payout ratio in its effect on price to book value. [ABSTRACT FROM AUTHOR]

We propose a model‐guided option‐implied ambiguity measure to capture uncertainty regarding the return distribution of a risky asset underlying a set of options, and investigate its predictive power on the asset return. A representative investor's ambiguous beliefs or prior distributions on the underlying asset returns are extracted from the market prices of options, the expected volatility of which is then defined as the option‐implied ambiguity and is calculated in line with Brenner and Izhakian. Simulated paths of the calibrated models are utilized to compute all pertinent probability characteristics from a forward‐looking perspective. The empirical results with SSE 50 ETF options indicate that the proposed option‐implied ambiguity has strong predictive power for future returns of SSE 50 ETF. Out‐of‐sample tests also verify the significant predictive ability of the option‐implied ambiguity to the equity returns. [ABSTRACT FROM AUTHOR]

The paper focuses on China's onshore bond market and the drivers of non-resident net portfolio flows into Chinese debt securities. Following a review of China's bond market, a simple theoretical model of push and pull factors driving bond flows is built. It represents a foundation for the empirical analysis on drivers of bond flows into China. Static and time-varying models are estimated to explain the importance of push and pull factors in China's bond market. While China-specific pull factors, such as domestic economic growth and asset returns, are important drivers of flows, the results reveal that global push factors, such as US interest rates and risk aversion, have recently gained significance as drivers of flows into China. The results confirm China's continued bond market deepening and integration with the rest of the world, which may have financial stability implications. Therefore, increased awareness regarding bond market developments in China is warranted. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the effect of political turmoil on the firm financial performance, particularly in presence of politically affiliated board of directors. Design/methodology/approach: The study applied panel regression analyses on a data set of Pakistan's listed companies ranged over 14 years, spanning from 2007 to 2021. Political turmoil was first gauged through three determinants, i.e. political protest, government election and constitutional reform, and thereafter, economic uncertainty index was used as a proxy for political turmoil. For the purpose of political connection, the study used political affiliation of the board of directors. Findings: The study finds that political turmoil has deleterious effect on the return on assets and Tobin's Q. The study further unveils that politically affiliated firms are relatively insulated from the volatility posed by the political uncertainty and exhibit significantly better financial outcomes. Practical implications: Findings of the study suggest that appropriate composition of the board is imperative in offsetting the risk posed by the political turmoil. Hence, the results are useful for investors, policymakers and regulators to ensure financial soundness of firms in the wake of political turmoil. Originality/value: To the best of the authors' knowledge, this is the first study that investigates the moderating impact of political connection on the performance of companies in presence of political turmoil. [ABSTRACT FROM AUTHOR]

Purpose: This study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables. Design/methodology/approach: This study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hypothesised relationships among 1,295 firm-year observations of publicly listed firms in Malaysia from 2015 to 2019. Findings: The results indicate that firm efficiency (technical efficiency, pure technical efficiency and scale efficiency) has mixed relationships with firm performance (return on assets, market-to-book ratio and operating cash flows), all of which are being moderated by controlling shareholdings. Practical implications: This study highlights the importance of assessing firm efficiency as the key success factor for improving firm performance. Industrial managers should manage efficiently their resources or operating costs in achieving their corporate financial goals. Moreover, this study notes the presence of controlling shareholders, who can be either self-interested or company goal aligned. Originality/value: This study suggests becoming efficient in transforming inputs into outputs is a prerequisite before investigating accrual-based and cash-based firm performance measures, and the presence of controlling shareholders matters in these regards. [ABSTRACT FROM AUTHOR]

Purpose: The main objective of this study is to analyze the mediating role of intellectual capital in the relationship between diversification, financial stability, and efficiency of the banking sector in Ethiopia. Design/methodology/approach: Secondary data for this study was obtained from audited financial statements of 17 Ethiopian commercial banks for a decade starting in 2013. A descriptive and explanatory research design with a quantitative research approach was employed. The seemingly unrelated Hierarchical regression analysis is used to estimate diversification's effect on banks' financial stability and efficiency, considering the interaction between diversification and intellectual capital as a mediating variable. Findings: The Mediation analysis reveals that asset diversification improves the financial stability of commercial banks when mediated by intellectual efficiency. Investment diversification negatively impacts risk-adjusted return on asset and Z score. Intellectual capital significantly enhances commercial banks' efficiency and financial stability in Ethiopia and mediates the relationship between geographic diversification, financial stability, and efficiency. The mediation analysis also indicates that intellectual capital significantly mediates the relationship between income diversification and efficiency. Practical implications: This study highlights the importance of intellectual capital and promotes its strategic allocation by management and regulatory bodies to enhance the financial stability and operational effectiveness of the banking industry in Ethiopia. Originality/value: To the best of the researcher's knowledge, this study is one of the rare attempts to investigate the mediating role of intellectual capital on the nexus between diversification, financial stability, and efficiency of commercial banks in Ethiopia. [ABSTRACT FROM AUTHOR]

Copyright of Turkish Journal of Marketing is the property of Turkish Journal of Marketing 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.)

This study investigates the managerial intent—whether opportunistic or signaling—behind real earnings management (REM) actions taken to meet the loss avoidance threshold by examining their impact on future performance, whether negative or positive. The focus is on the impact of REM through overproduction, as well as selling, general, and administrative expenses (SGAX), both in aggregate and individually, on return on assets (ROA) and cash flow from operations (CFO). Additionally, the study delves into the impact of three components of SGAX, namely marketing expenses (MRKX), welfare and training expenses (WTX), and other general and administrative expenses (OGAX)—separately. To estimate REM proxies, this research utilizes Srivastava's (2019) models, which account for variation in a firm's competitive strategy. It applies panel regression analysis on observations from a sample frame consisting of 1444 non-financial enterprises spanning from 2005 to 2019. The findings reveal that firms motivated to meet the loss avoidance threshold and exhibiting REM, particularly through SGAX, experience a negative ROA in later years. The study observes similar implications for MRKX and OGAX. Furthermore, firms engaging in REM through OGAX witnessed unfavorable CFO implications. The study does not observe any impact of REM through overproduction and WTX on future performance. The robustness tests corroborate these findings, and additionally indicate that SGAX and WTX-focused REM negatively impact CFO, while overproduction-focused REM adversely impacts ROA. The results suggest that manager exercise REM opportunistically to avoid losses, highlighting the need for regulatory intervention to address the threshold mentality among Indian firms. [ABSTRACT FROM AUTHOR]

Illiquid assets require a return premium; illiquidity is also a limit‐to‐arbitrage. We find that Amihud's illiquidity premium is significantly higher among underpriced stocks than among overpriced stocks. Excluding the most mispriced stocks leads to a higher and more reliably estimated illiquidity premium. Amihud's illiquidity measure is positively correlated with overpricing, consistent with arbitrage asymmetry, while inconsistent with Lou and Shu's contention that the return premium associated with the Amihud measure reflects mispricing rather than compensation for illiquidity. Our results demonstrate that it is important to account for their role as limits‐to‐arbitrage when evaluating the pricing of illiquidity measures. [ABSTRACT FROM AUTHOR]

This study aims to analyze the influence of dividend policy on the value of companies with profitability as an intervening variable in companies that are members of LQ45 listed on the Indonesia Stock Exchange (IDX). LQ45 is a stock index consisting of 45 selected companies with high liquidity and large market capitalization. A dividend policy is a company's decision to distribute profits to shareholders, which can affect the market's perception of the company's value. Profitability is measured using Return on Assets (ROA), which reflects a company's ability to generate profits from the assets it owns. This study uses a quantitative approach with secondary data taken from the annual financial statements of LQ45 companies during the 2019-2022 period. Data analysis was carried out using multiple regression methods to test the relationship between dividend policy, profitability, and company value. The results of the study show that the dividend policy has a significant positive influence on the company's value, both directly and through profitability as an intervening variable. This finding has implications for company management in designing optimal dividend policies to increase company value, as well as for investors in considering dividend policies and profitability as important factors in making investment decisions. [ABSTRACT FROM AUTHOR]

The ability of Islamic stock companies to generate profits, pay obligations and have a high ranking in environmental financing does not necessarily have the highest stock price. Therefore, a study was conducted with the aim of determining the effect of ROA and CR and green accounting on stock prices, to determine the effect of ROA and CR on stock prices through green accounting as an intervening variable in Islamic stock companies listed on JII for the 2019-2023 period. The population was 30 JII constituent companies. The research sample was 65 observations from 13 companies according to the criteria for 5 years of observation. The data analysis technique used panel data regression assisted by Eviews software version 10. The results of the study (1) ROA has a positive and significant effect on Green Accounting (2) CR has a positive but not significant effect on Green Accounting; (3) ROA has a positive and significant effect on Stock Price; (4) CR has a positive and significant effect on Stock Price; (5) Green Accounting has a negative but not significant effect on Stock Price; (6) ROA has a negative but not significant effect on stock prices through green accounting as an intervening variable; (7) ROA has a negative but insignificant effect on stock prices through green accounting as an intervening variable. [ABSTRACT FROM AUTHOR]

This research aims to analyze the influence Return on Assets (ROA), Operating Costs to Operating Income (BOPO) and Net Interest Margin(NIM) against Financial Sustainability Ratio(FSR) at National Private Commercial Banks for Foreign Exchange in Indonesia during the period 2018 to 2022. The population in this research is all National Private Commercial Banks for Foreign Exchange in Indonesia during the period 2018 to 2022. The sample selection technique used purposive sampling and 15 banks were selected as research data. The data analysis method used is panel data regression analysis using Eviews 10. The research results show that: Return on Assets (ROA) has a positive and significant effect on the Financial Sustainability Ratio (FSR). Operational Costs on Operating Income (BOPO) and Net Interest Margin (NIM) have a negative and significant effect on the Financial Sustainability Ratio (FSR). The R Square value is 0.957730, indicating that the Financial Sustainability Ratio (FSR) is influenced by Return on Assets (ROA), Operational Costs to Operating Income (BOPO) and Net Interest Margin (NIM) of 95.77%. [ABSTRACT FROM AUTHOR]

This paper uses Data Envelopment Analysis to assess the performance of stocks in terms of return on assets, risk and their Environmental‐Social‐Governance score. Next, latent class analysis (LCA) is used to determine groups with similar performances and relates group membership to a set of covariates. The empirical application employs a set of 139 European manufacturing companies from 2016 to 2021 period. The results suggest stocks on average perform 25% below their potential in each of the three dimensions. The LCA suggests five groups and membership of lower performance classes significantly relates with lower size, R&D expenses and Tobin's Q. [ABSTRACT FROM AUTHOR]

This paper examines determinants and consequences of hedge fund activism, focusing on activist directors, i.e., directors appointed in response to activist demands. Using a sample of 3,259 activism events from 2004 to 2016, we identify 1,623 activist directors. Compared to other newly appointed directors, these activist directors tend to be younger, more likely to have finance and accounting skills, and less likely to be female. We find that the likelihood of acquiring board representation is associated with weaker market performance or lower payout ratios. Following the appointment of an activist director, we find evidence of increased divestiture, decreased acquisition activity, higher CEO turnover, increased leverage, higher payouts, and reduced investment. Our analysis of data on activists' stated demands also shows that activist directors are effective in helping activists achieve their goals, consistent with the notion that board representation is an important mechanism for activists to bring about desired changes. Finally, we find positive abnormal returns of 1% when an activist director is appointed and a 3.2%-point increase in return on assets over the subsequent five years with an activist-affiliated director. [ABSTRACT FROM AUTHOR]

Copyright of Hacettepe University Journal of Economics & Administrative Sciences / Hacettepe Üniversitesi Iktisadi ve Idari Bilimler Fakültesi Dergisi is the property of Hacettepe University, Faculty of Economic & Administrative Sciences 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.)

This study examines the relationship between country-level corruption (proxied by the Corruption Perception Index, CPI) and firm performance (measured by Return on Assets, ROA) across 18,286 firms in the East Asia, South Asia, and Southeast Asia regions. Additionally, the moderating effects of audit quality (proxied by auditors' reputation) on the relationship are examined. The findings of the study indicate a positive association between corruption and ROA in high-income nations, thus providing evidence in favor of the "greasing the wheel" theory. On the other hand, a negative association is documented in the upper middle- and low-income nations, which is consistent with the "sanding the wheel" notion. Notably, audit quality has a positive moderating influence on the relationship between corruption and ROA, especially in nations with low corruption levels, reaffirming the pivotal role of reputable auditors in enhancing firm performance within these economic contexts. The results of this study have important ramifications for forming policy suggestions and enhancing governance. The findings highlight the opportunity to improve governance practices and regulations to reduce corruption and increase transparency. Policymakers can develop ways to strengthen institutional frameworks by recognizing the complex link between corruption, corporate profitability, and the function of respected auditors. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Accounting & Finance Management (JAFM). is the property of Dinasti Publisher 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.)

This study aims to evaluate the impact of Good Corporate Governance (GCG) on the financial performance of food and beverage companies listed on the Indonesia Stock Exchange (IDX) for the period 2021-2023. The research employs a quantitative method with an explanatory research type. Data were collected from annual reports and financial statements of companies using purposive sampling technique, resulting in a sample of 33 companies. Data analysis was conducted using SPSS software through several stages of testing. The findings indicate that institutional ownership has a significant positive impact on the financial performance of companies, as assessed through Return on Assets (ROA), while the independent board of commissioners has a significant negative impact and the audit committee shows no significant impact. Overall, GCG variables have a significant influence on the financial performance of companies, with institutional ownership playing a crucial role in enhancing management oversight. [ABSTRACT FROM AUTHOR]

As another US presidential election approaches, investor interest in the impact of these elections on asset returns and the existence of a presidential puzzle reemerges. To help investors decide on whether or not they should consider presidential elections and related criteria in making tactical asset allocation decisions, we update prior literature to include more recent elections and we directly test for differences in real returns on various asset classes. Considered independently, there is evidence that the party of the President, political gridlock, and monetary policy continue to have a relationship to stock, bond, and T-Bill returns that continues to diminish over time. Examining these relationships in a simultaneous, multivariate setting yields similar results. In an efficient frontier portfolio setting, Democrats provide investors with better risk-return tradeoffs than Republicans for stock, government bond, and T-Bill allocations with higher allocation toward equities, but Republicans have provided better tradeoffs for conservative investors that are more weighted toward bonds and T-Bills. As the election approaches, active investors should remain cognizant of a presidential puzzle and related risk-return tradeoffs. [ABSTRACT FROM AUTHOR]

This paper proposes a cross‐section long short‐term memory (CS‐LSTM) factor model to explore the possibility of estimating expected returns in the Chinese stock market. In contrast to previous machine‐learning‐based asset pricing models that make predictions directly on equity returns, CS‐LSTM estimates are based on predictions of slope terms from Fama–MacBeth cross‐section regressions using 16 stock characteristics as factor loadings. In line with previous studies in the context of the Chinese market, we find illiquidity and short‐term momentum to be the most important factors in describing asset returns. By using 274 value‐weighted portfolios as test assets, we systematically compare the performances of CS‐LSTM and three other candidate models. Our CS‐LSTM model consistently delivers better performance than the candidate models and beats the market at all different levels of transaction costs. In addition, we observe that assets with smaller cap are favored by the model. By repeating the empirical analysis based on the top 70% of stocks, our CS‐LSTM model remains robust and consistently provides significant market‐beating performance. Our findings from the CS‐LSTM model have practical implications for the future development of the Chinese stock market and other emerging markets. [ABSTRACT FROM AUTHOR]

Bu çalışmada, Türkiye'deki katılım bankalarının finansal performansını değerlendirmek amacıyla 2016:Q1-2023:Q4 dönemlerindeki finansal verileri içeren bir veri seti kullanılmıştır. Veri seti; Albaraka, Kuveyt Türk, Türkiye Finans, Vakıf Katılım ve Ziraat Katılım bankalarının her bir çeyrek dönem için çeşitli finansal göstergelerini kapsamakta ve toplamda 160 gözlem içermektedir. Çalışmada aktif karlılık ve özkaynak karlılığı bağımlı değişken; büyüme oranı, kredi temerrüt takas oranı, finansal hizmetlere güven değişkeni, döviz kuru ve kar pay oranı bağımsız değişken olarak belirlenmiştir. Çalışmada, bankaların finansal performansını belirleyen faktörlerin analiz edilmesinde hem zaman, hem de yatay kesit etkilerini dikkate alan panel veri analizi kullanılmıştır. Araştırmadan elde edilen bulgulara göre, kredi temerrüt takası, döviz kuru ve kar payı oranının katılım bankalarının performansı üzerinde anlamlı etkileri bulunmaktadır. Ayrıca büyümenin aktif karlılık üzerindeki etkisi anlamlı iken özkaynak karlılığı üzerindeki etkisinin anlamlı olmadığı sonucuna ulaşılmıştır. Finansal hizmetlere güvenin ise katılım bankalarının performansı üzerinde anlamlı bir etkisi yoktur.

This study examines the determinants of credit risk in Nepalese commercial banks, emphasizing macroeconomic and bank-specific factors. The study utilizes a random effects regression model to investigate the impact of various factors on non-performing loans using panel data from 10 commercial banks in Nepal from 2013–2022. The study's theoretical framework draws on established economic theories, including Kalecki's business cycle theory and Diamond & Dybvig's banking theory. It aims to contextualize the relationship between credit risk and various influencing factors. The theory sets the stage for analyzing credit risk determinants in Nepalese banks. The findings demonstrate that non-performing loans are significantly and positively associated with bank size and return on assets, whereas asset quality and bank age have a negative and significant impact. The capital adequacy ratio exhibits a positive but insignificant impact. Among macroeconomic variables, the inflation rate has a positive and significant impact on non-performing loan, whereas real gross domestic product growth reveals a positive but insignificant relationship. These findings are of utmost importance for bank managers and policymakers in Nepal, as they provide valuable insights to enhance credit risk management practices and maintain financial stability in the banking sector.

The relationship between bank performance and bank value is a crucial area of study, particularly in the context of emerging economies like Jordan. This study aims to investigate the moderating effect of bank performance on bank value, providing insight into how performance metrics influence overall valuation. The study employs a comprehensive methodological approach, utilizing panel data regression analysis to examine data from a sample of Jordanian banks over the period from 2014 to 2022. Key performance indicators such as Tobin’s Q, accounting conservatism, debt ratio, current ratio (CR), return on assets (ROA), and asset turnover are factors that influence bank value in the Jordanian market. The results reveal that bank performance significantly moderates the relationship between bank-specific factors and bank value. Specifically, the study finds that return on assets has a positive and statistically significant effect on bank value. The analysis reveals a significant positive correlation between bank value and profitability, as evidenced by a moderate positive correlation coefficient (0.26) between Tobin’s Q and ROA. However, weak or non-significant correlations are observed between bank value and accounting conservatism, debt ratio, and asset turnover.

The Single Supervisory Mechanism (SSM) was implemented as a first step towards a Banking Union in November 2014. This paper investigates the impact of the SSM on Eurozone banks' efficiency and position of best-practice frontier. It is based on a balanced panel analysis of 931 European bank-year observations from 2011 to 2017 (133 banks, seven years). The study uses Data Envelopment Analysis and a difference-in-differences approach to explore the evolution of banking performance. We found that the SSM had a negative impact on the efficiency levels of Eurozone banks, particularly in the year after the introduction of the mechanism. Additionally, we observed that the frontier formed by non-Eurozone European Union banks is more productive than the frontier of Eurozone banks in all the years analysed. Both efficiency and frontier position show evidence of a recovery trend in more recent years for both groups. We also found that while Equity-to-Asset Ratio, Return on Average Assets and Gross Domestic Product per capita positively impacted banks' efficiency, domestic credit provided by banks expressed as %GDP had a negative impact on efficiency. [ABSTRACT FROM AUTHOR]