International Journal of Commerce and Finance (IJCF - İstanbul Commerce University)
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Factors Affecting Profitability of Insurance Companies in Ethiopia: Panel Evidence
Get PDFProfitability is one of the most important objectives of financial management because one goal of financial management is to maximize the owner` s wealth. This paper examined the effects of firm specific factors (age of company, size of company, leverage ratio, premium growth rate liquidity ratio and tangibility of assets) on profitability proxied by ROA. Profitability is dependent variable while age of company, size of company, premium growth rate,leverage liquidity ratio and tangibility of assets) are independent variables. The sample in this study includes nine of the listed insurance companies for twelve years (2005-2016). Secondary data obtained from the financial statements (Balance sheet and Profit/Loss account) of insurance companies, financial publications of NBE are analyzed.Panel data analyzed using Random Effect Model (FEM) after testing the appropriateness of the model with Fixed Effect and Pooled regression model. From the regression results; size,premium growth rate and liquidity and age are identified as most important determinant factors of profitability hence premium growth rate and size, are positively related. In contrast liquidity and age negatively but significantly related with profitability. Lastly, leverage and tangibility of asset are not significantly related with profitability
Effect of Corporate Governance on Tax Planning & Firm Value
Get PDFThe objectives of this study are to examine the effect of tax planning on firm value with the moderating influence of corporate governance, including board size, board independence, audit quality, board gender diversity, and audit committee size. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2016-2018, with 266 observational data. Having different from previous study, this study uses more diverse moderating variables with empirical evidence from Indonesian companies. The results of the regression analysis prove that tax planning has a positive effect on firm value where these results are in line with traditional theories. Other regression analysis results, gender diversity board of directors and audit committee size weakens the relationship between tax planning and firm value. However, board size, board independence, and audit quality do not affect the tax planning relation on firm value
Political Risk and Turkey 2002-2019
Get PDFPolitical risk has become a common topic in recent years. Political risk, which is considered as the main parameter of country risk by international rating agencies, affects CDS credit scores and foreign investor decisions, which are very important in international trade. This study aimed to investigate the factors that make up Turkey as an example of political risk. Accordingly, the situations involving the political risk and the effects of the country in the period after the 2001 financial crisis were analyzed. Examples of political content and measure the risk scoring system used in the PRS Group research company, including risks related to the methods and principles taken from the 2001-2019 year, Turkey was subjected to analysis with this data. Besides scores of different international rating agencies it is made by comparing a general assessment about Turkey. It was determined that the political risk damaged the country's economy, growth, investment and future. In order to reduce the perceived political risk in the international system of Turkey, emphasized the necessity of the factors affecting ratings are given
Sustainable Finance Portfolio Analysis in Islamic Bank (Segment Perspective)
Get PDFThe purpose of this study is to analyze the distribution of financing at Bank Syariah Mandiri (BSM) based on the segments included in the sustainable finance category in 2019. The method used is quantitative, which is to analyze based on secondary data published in 2019 with research questions: (i) How much is the distribution of retail segment financing to BSM, and how much is included in the sustainable finance category in 2019?; (ii) How big is the distribution of corporate segment financing in BSM, and how much is included in the sustainable finance category in 2019?; (iii) What is the ratio of the distribution of financing included in the category of sustainable financing in the retail segment to the corporate segment in 2019?. The findings of this study are (i) the distribution of financing to the wholesale segment contributed 63% to the sustainable finance; (ii) the distribution of the funding to the retail segment contributed 37% to the sustainable finance; (iii) The portion of BSM financing distribution included in the sustainable finance category in 2019 was 47%
Analysis of Financial Structure of Cooperative organization in Nigeria
Get PDFThis study analysed financial structure of workers cooperatives using University based cooperatives as a case study. The paper employed secondary data from annual reports and accounts of the cooperatives between 2012 and 2018 accounting years and uses descriptive statistics to analysis the data. The financing structure of the cooperatives consists of share capital, reserves and savings. The assets structure of the cooperative consist of outstanding loans to member-patrons, cash and stock of trading items. Further analysis shows that the trend of share capital as a component of financing structure was increasing more consistently over the period
The Effect of Green Product Innovation and Green Process Innovation on Company Performance
Get PDFThis paper aims to investigate effects of green product innovation and green process innovation on the performances of companies. It presents in-depth interviews with Alarko Carrier A.Ş. and Cenal Elektrik Üretim A.Ş. which are companies of Alarko Holding in Turkey. Alarko Carrier A.Ş. produces, sells, exports, imports, makes marketing activities and after sales services of cooling, heating and water pressurization systems. Cenal Elektrik Üretim A.Ş. is an electric plant which produces electricity from coal by conducting environmentally friendly innovation activities in their business processes. The in-depth interviews were conducted with middle level managers from these companies to find out their green product innovation and green process innovation practices and their effects on their company performances. It is found out that these companies have corporate cultures supporting their green product innovation and green process innovation practices which affect their financial performance and stakeholder performance. Additional in-depth interviews can be conducted with companies from other sectors for further studies
Assessment of Tax Payment and Collection Problems in Jimma Zone, Ethiopia
Get PDFThe study was attempted to assess problems associated with taxpayers and the revenue authority of Ethiopia case of Jimma Zone, Oromiya regional state. To address research objectives, the researchers were used survey data collected through questionnaires, and the collected data were analyzed with the aid of statistical software, ordered logistic regression model. The study used tax collection as dependent variable, and those taxpayers delay declaration, tax fairness and equity, corruption and political instability, organizational strength of the tax authority, tax payer’s awareness, mode of tax collection, and starting a business without a license as independent variables. The findings of the study revealed that independent variables corruption, political instability, organizational strength of the tax authority, tax fairness, and modes of tax collection has a significant relationship with tax collection. It indicates that these variables have an impact on the collection of taxes. On the other hand, other variables, taxpayers' delay on the declaration, taxpayers' awareness, and starting a business without license shows no significant relationship. Researchers recommended that to improve tax collection the tax authority should develop strategies to aware tax payers in the community
Asset, Capital Structure, Liquidity, Firm Size’s Impact on Stock Return
Get PDFThe aim of this study is to analyze the effect of Asset and Capital Structure, Liquidity and Firm Size on Stock Return of companies grouped as LQ-45 index listed in Indonesia Stock Exchange (IDX) during 2015 up to 2019 period. The research involves the secondary data in the form of financial annual report collected from IDX website, sample used is purposive sampling and research object is Asset and Capital Structure, Liquidity and Firm Size as independent variables and Stock Return as dependent variable while analyzing used SPSS 2.0, E-views 9.0 version. The result shown that when Stork Return measured by market price, Firm Size affects significantly on Stock Return, meanwhile Asset Structure, Capital Structure, Liquidity does not and Firm Size does not moderate the relation between Asset Structure, Capital Structure, Liquidity and Stock Return. But when Stock Return measured by Return on Equity (ROE) it is found that Capital Structure, Liquidity and Firm Size affect Return on Equity, meanwhile Asset Structure and Firm Size also moderates the relation between Asset Structure, Capital Structure, Liquidity and ROE. This finding implies that firm management must pay attention on market measurement performance in their strategy to achieve company goals. The originality of this study is that about the period as the last 5 years and the research object of companies grouped as LQ-45 index and measurement comparation between book value and market value of stock return.
Macroeconomic and Bank Specific Determinants of Commercial Bank Profitability in Ethiopia
Get PDFThe purpose of this study was to empirically examine the impacts of the macroeconomic and bank-specific variables on profitability of commercial banks in Ethiopia. For the purpose secondary data collected from seven banks over the period 2000-2017 and other sources were analyzed using a panel ordinary least squares regression model for the fact fixed and random effect model found inappropriate after the Hausman tests and Breusch-Pagan Lagrange multiplier (LM). The results of the study showed statistically significant negative impacts of broad money supply and credit risk. Inflation and GDP on the other hand was found with significant positive impacts. Yet, Cash reserve ratio and bank size showed no significant impact on the profitability of commercial banks in Ethiopia. The results suggested the need for enhancing credit risk management practice, optimizing the leverage ratio in increasing bank size. A thorough understanding of the strategic business environment also found highly relevant in commercial bank management for the fact macroeconomic variables and regulatory factors found to have significant implication on profitability.
Islamic Micro Finance Services in Ethiopia: Performances and Implications for Financial Inclusion and Poverty Alleviation
Get PDFDeprivations are a worldwide incident affecting people both in developed and developing countries. The study examines the performances Islamic micro finance institutions and their implication for financial inclusion and poverty alleviation in Ethiopia. Descriptive method of research is used to understand the general overview and performance of both conventional and Islamic micro finance institutions and observe the role of Islamic micro finance institutions towards ensuring financial inclusion and reducing poverty in the country. A survey was conducted on interest free micro finance windows in the existing conventional micro finance institutions in different parts of the country. The results revealed that most of the institutions provide murabaha which is a popular form of financing small entrepreneurs and businesspersons. However, the main challenges of interest free micro finance system are unavailability of clear and detailed legislation from the regulator National Bank of Ethiopia (NBE), shortage of trained and knowledgeable workforce related to interest free micro finance services, immense and arduous administrative cost of the system and clients’ nonconformity with some Sharia principles like failure to deliver the item to the institution after they acquired it from the market on behalf the micro finance institutions