Return on asset

The present research was trying to study the effect of cash change period on return on assets. Regarding the importance of the issue, in this research we tried to use the newest statistical methods whose precision was much more than the traditional methods. The present research investigated the effect of cash change index effect on return on assets in 191 firms enlisted in Tehran Stock Exchange during the time period between 2003 and 2009 by using panel data. Based on research results, the effect of cash change period on return on assets was accepted for all companies and it can be said that cash change period has had a negative effect on assets. According to other results, financial leverage coefficient was positive and it was meaningful in %1 level. The coefficient of gross domestic product was positive and statistically meaningful. But by isolating firms into different industries this effect varied. Results of the present research accorded with results in researches by Aljili (2004) and Dang (2010).

This study analyzes the influence of intellectual capital and corporate governance on the financial performance of the company. The data from 11 sharia banking in Indonesia. The analytical method used is seemingly unrelated regression, with two dependent variables, namely return on asset (ROA) and asset growth (AG) and seven independent variables, namely human capital, structural capital, capital employed, which is a sub variable of intellectual capital, and the board of size, the board of demography, the board of education (BE), the board of evaluation is a sub variable of corporate governance. The results of this study indicate that intellectual capital has a positive and significant effect on ROA, and no effect on AG. While corporate governance has a positive effect on ROA and does not affect the growth of corporate assets.

The figure above shows that the average return on asset (ROA) was shown in 5 years performance of Bajaj Auto company. As we can see, the performance was good at first 2 years and sink on 2013, 2014 and 2015. This average return on asset (ROA) is a measurement of how gainful an organization is in respect to its aggregate resources. ROA gives a manager, investors, or shareholder a thought in the matter of how effective an organization's administration is at utilizing its resources for create income. On 2011, the average was 0.0179% and 2012 was a little bit down 0.0178%, we can see the company is efficient in utilizing their assets to generate income. Furthermore, the average on 2011 was the highest value among this 5 years performance.

Financial ratio analysis has been executed to assess the performance of Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB). Balance sheet and income statement for both banks in year 2007 and 2008 have been obtained as a resource for the financial ratios analysis. The following ratios were observed return on asset and on equity, asset utilization, profit margin, liquidity, debt to equity ratio and equity to net loan ratio. For the cross sectional analysis, similar ratios where observed to determine which financial system performed better during 2007- 2008 in terms of capital adequacy, profitability and liquidity. Several ratios were added in the cross sectional analysis including; tier one, nonperforming loan ratio, liquid asset to total asset, loan to total asset and loan to total deposit ratio.

This study implemented an empirical investigation for the relationship between credit risk management and profitability of commercial banks in Palestine over the period of 7 years (2008-2014), eleven commercial banks were selected. The financial theory was employed to create the research model; Return on Asset (ROA) and Return on Equity (ROE) are defined as proxies of profitability while capital adequacy (EQTA), credit monitoring (LLPI) and income diversification (NIDR) are defined as proxies of credit risk management. Panel model analysis was used to estimate the determination of the profit function. Results revealed that the credit risk management does have significant effect on the both ROA and ROE. While EQTA has an negative insignificant effect on ROA. However, the relationships between all the proxies are fluctuated.

Ghousoud and Reed III (2010) opined that to lower liquidity risk consequently reduce the banks need to hold cash which allow banks to lend more to generate more return is contributed by steady economic growth. Furthermore, Sundararajan and Errico (2002) suggest that the liability needs a long-term maturity to avoid liquidity risks in order to finance assets using the equity modes. Sundararam and Errico (2002) also state that the participation nature enables real business activities to the fact that both parties have to bear the profit and loss will be shared by an agreed percentage. Next, Ghazali (2008) suggests there are positive relationship between return on asset and liquidity. However, Choonet al. (2012) states that with lower liquidity, liquid is negatively significant to return on asset which implies that more financing were made by the Islamic Bank.

In light of the above literature, this paper intends to know about the variation of leadership styles in context to the banking industry of Bangladesh. The banking industry of Bangladesh at present is in the growth stage. However, the industry has been facing several problems in terms of low profitability (return on asset, return on equity and non-performing loan) after 2010. An effective leadership may provide the necessary power for improvement in supervision and regulatory capacity, and streamlining of enforcement of prudential guidelines. That is why leadership practices are relevant to discuss.

Operational performance of Sapura Kencana is indicates these three ratios, return on asset (ROA), return on equity (ROE) and profit margin ratio. ROA shows a bad sign where it directly decreases from 2012 to 2015. It shows that Sapura Kencana is not able to well manage it company to make a profit. The higher the return on asset, the more efficient a company can generate the profits. The same movement is happened to the return on equity. It goes down from 2012 to 2015. ROE is important to measure how well the company in generating earning growth through the investment. Based on the graph 2.0, SapuraKencana is in lack of growth where ROE is decreasing from 0.26 to 0.04. The shareholder capitals is not generating too much in making a profit. Next, the most obvious is profit margin ratio where it started from the negative value move to positive one. In 2011, it is about -1 and it growth to 0.46 in 2015. In 2011, SapuraKencana is staying in the worst condition in remaining of percentage of the business's revenue after the cost of goods is deducted. However, SapuraKencana is not maintaining on that worst condition when it started to grow in 2012. There is a sign of generating a good business profit in maintaining the business revenues.

Abstract: The dividend decision is taken after careful consideration of a number of factors, such as legal and financial. This is because it is impossible to develop a dividend policy set that applies to all companies. The decision about dividends differs from company to company in the light of company considerations. The dividend is partly dependent on the current earning of the company and partly on the dividend from the previous year. Therefore, the main changes in profit with the existing rate of dividends were the main determinants of corporate dividend policy. The research showed that the profitability aspects and their indicators for each of the return on equity return on asset, and earning per share without dividend yield, have the greatest impact on share price performance, followed by the financial risks aspect of financial leverage without gains variation which comes in the second rank. Then, the factor of size, investment opportunity for each of investment opportunity and net profit standard deviation without assets volume comes in the third place and finally, the liquidity and signals factor represented in the cash ratio without signals index. While the profitability aspects and its indicators for each of the return on equity, return on asset, earning per share without dividend yield are the most effective on pay-out ratio (first rank), followed by financial risks aspect and gains variation coefficient without financial leverage in the second rank, then the liquidity factor of index without the signals in the third place and finally size and investment opportunity factor for each of investment opportunity and assets volume without net profit standard deviation.

For the purpose of this study, market price of the equity, return on asset (ROA), and return on equity are used as the dependent variables which are the measure of the firm performance. Stock price is the market reaction to what is happening with the firm. It is an important indication of firm performance and used in many studies (Anthony and Ramesh 1992; Ishak and Abdul Latif 2012; Tosi et al. 2004; Yemi 2013). ROA and re- turn on equity (ROE) are generally considered as the performance measurement in business research (Binacci et al. 2016; Murphy et al. 1996). ROA is measured as the ra- tio of the net income for the year divided by the total asset at the end of the year. ROA is generally used as the measure of firm performance because it considers not only the operational events over the year but also the relevance of the historical antecedence of the firm over the year. ROE is the ratio of the net income for the year divided by share- holders ’ equity at the beginning of the financial year. ROE measures the ability of a firm to generate income from its shareholders’ investments in the firm.

Abstract- This paper scrutinizes the consequence of capital structure on execution of Pakistani banks. Sample of study include 25 banks, which are listed at (KSE) or schedule banks in (SBP) state bank of Pakistan. Multiple regression models are pragmatic to guesstimate the liaison between capital structure and banking performance. Performance is measured by Earnings Per Share (EPS), Return on Asset (ROA), Return on Equity (ROE), Total Liability to total Asset (TDTA), Total Liability to total Equity (TDTQ), Short Term Liability to Asset (SDTA), Long Term Liability to Asset (LDTA). Findings of the study authenticated a positive relationship between determinants of capital structure and performance of banking industry.

Return on Assets(ROA) and Return on Equity(ROE) are key performance indicators that the investors of companies shares always consider in assess their future earning potentials. Any shareholder who anticipates a decline in Return on Assets(ROA) or Equity usually takes proactive step to avoid such an unprecedented, unforeseen and undesired event to happen. From the biblical perspective, in Mathew 25:27, investors put their moneys into the bank to obtain interest. This study focuses on establishing relationship between Return on Asset and Return on Equity using profit Margin and Turnover as a model of Corporate strategic Donation in the selected firms. The population for the study is made up all the Information Technology companies registered with Security and exchange commission database. The study uses sample size of consolidated financial statement of 471 subsidiaries that was registered and reported their financial statement with Security and exchange database. It is a quantitative study that used IBM SPSS version 21 to analyze the data obtained from the secondary source. The responses received were analyzed through descriptive statistics in the form of percentages, mean score, standard deviation, Simple and Multiple Regression Analysis and ANOVA tests to determine how the various groups within the data collected may have greater or lesser influence on the success of Corporate strategic Donation as discretionary management tool. The research reveal that Corporate strategic

This paper examines the relationships between corporate government and firm performance and its impact on firm performance and risk of real estate investment trust (AmFIRST REIT). Researchers have to assumed what is the different forms of corporate government and firm performance there is no interact in their effect on its impact on firm performance and risk of real estate investment trust (AmFIRST REIT). The data obtained from annual report of AmFIRST REIT starting from 2011-2015. Focus on ratio which is return on asset, return on investment, return on equity, current ratio, total asset turnover and debt ratio. Corporate executive shareholdings supplement have the relationship between outside institutional shareholdings and with their firms performance in this industry. All this findings suggest that internal and external coalitions interact with each other to influences the firms conduct.

The study focuses on impact of financial reporting on profitability of quoted companies in Nigeria. For the study, the primary data sources were obtained by distribution of questionnaire while the secondary data were obtained from online annual financial statement of the sampled companies. The study adopted the survey research and cross sectional research design. The sample companies were obtained by using the proportionate stratified sampling. The variables considered in the study were financial reporting and financial performance, which were represented by quality of financial reporting, return on equity, return on asset and profit after tax. The hypotheses for this study were analyzed with the aid of Eviews 7 statistical software, and the level of significance used to test the hypothesis was 5%. The findings of the analysis show that there is positive relationship between quality of financial reporting and profit after tax (i.e. 0≤Pat≤0.002). It also establishes that quality of financial report has significant effect on return on asset (0≤Pat≤0.002). Based on this, study concludes that there is strong relationship between profit after tax(PAT) and financial reporting of quoted companies in Nigeria as P-value obtained (0.000). Hence, study recommends that management of quoted organization should ensure they adopt best practices in financial reporting because there is direct relationship between quality of financial reporting and profit after tax, and also because quality of financial reporting has positive impact on return on asset of the quoted companies in Nigeria.

Return on asset (ROA) are important in the banking industry. By analysing the ROA differences of each banks, we will be able to verify the profitability made by the bank in some way that are related to the liquidity levels. ROA is calculated by dividing the net income of each period over the total assets of the firm. However ROE would not a good comparison because the small and the negative equity level of some firm would generate distorted indicators to profitability. Since net income and total assets can be found in the annual income statement, it will be difficult to make a table for the ratio.

Share valuation is a prerequisite for the investors in making investment decisions. From investor’s perspective, they try to measure the actual value of stock so that they don’t lose their invested funds. But from company’s perspective, it tries to make positive perception about its stock among the investors. P/E ratio is a medium for both parties to communicate with each other. P/E ratio simply indicates the share price against earing. In normal sense, higher P/E ratio indicates better position of a firm and vice versa. So a firm may increase P/E ratio by reporting less earnings less than actual figure if it wants to make foolish the investors. Determinants of P/E ratio may be irrelevant for technical analysts. But no scope is left for fundamental analysts to overlook the relevancy of determinants in valuing P/E ratio. Valuing the listed manufacturing firms, now investors may consider the dividend yield, leverage, size and net asset value per share as the most significant determinants of P/E ratio. But this article is failed to reveal the significance of other selected variables i.e. dividend growth, dividend payout ratio, earnings growth, return on asset, return on equity, tobin’s Q as the determinants of P/E ratio. Because some selected samples were deducted due to unavailability of data. The selected variables don’t cover all possible factors. In spite of these limitations, still this article is an empirical evidence for the fundamentals analysts.

Licensed under Creative Common Page 435 investment in working capital and reduces the profitability of the firm. The optimal level of working capital, which is a trade off between risk and profitability, can be affected by both internal organizational characteristics and various outside factors. Results of our panel regression are indicative of strong effect of working capital management on profitability of Nigerian quoted firms. Specifically, cash conversion cycle has a negative impact on return on assets on Nigerian firms; liquidity has a positive relationship with return on asset; current ratio is found to be the most important liquidity measure that affects profitability; age has a positive significant impact on return on assets of Nigerian firms; and accounts receivable has negative significant effect on return on assets. The negative relationship could be justified on grounds that customers want more time to assess quality of products they buy from firms with declining profitability. Less profitable firms grant their customers longer payment deadlines. Firms with falling sales and consequently declining profits find will their stock levels rising. This relationship also suggests that less profitable firms will pursue a decrease of their accounts receivable in an attempt to reduce their cash gap in the cash conversion cycle. Our findings are in line with most theoretical and empirical predictions. We recommend as follows:

On the other hand if wealth is very low and close to the value at which the agent can switch to subsistence, he/she will find it beneficial to consume the rest of available wealth in a short burst to boost utility, knowing that there is guaranteed utility awaiting him/her after the wealth drops to specific level. As a result, the agent’s decision to consume depends non-linearly on the wealth. As we will later see, consumption also depends on the financial parameters of the risky and risk-free assets. Also, as wealth approaches the lowest possible level, the agent may find it beneficial to risk more of his/her wealth in the hope of improving his/her situation dramatically if there is a positive jump in price of risky asset. If the price moves down, in the bad state, he/she does not lose a lot. So, the investor’s investment decision (and the fraction of wealth devoted to the risky asset) is also non-linear with wealth.

This PhD thesis deals with the asset allocation problem for actively managed fixed income portfolios; the equilibrium returns, the investment views, the risk dynamics, the correlation structure between asset classes and risk factors and the optimization process are all revisited in order to address the multiple issues that arise from the portfolio construction process. In this respect, each Chapter of the current PhD thesis explores alternative research questions in regards to the above topics. Chapter 3 juxtaposes the CAPM implied equilibrium returns with the occurring yield to maturities in the investment grade universe and uses the yield advantage of each component of the portfolio over a benchmark index to determine the relative to the benchmark allocation. This is performed using Black- Litterman model, but tweaked to allow for the representation of the investment views and more importantly of portfolio views onto a risk factor space. Chapter 4 relates to the examination of the risk behaviour of twelve real portfolios of a leading investment institution actively managed against the Barclays Capital US Aggregate Index. The tail risk dynamics of these portfolios have been explored given the set of available risk factor sensitivities over time. Chapter 5 takes into account the latest developments in the literature regarding Bayesian portfolio allocation and risk factor specification, to propose an allocation risk factor framework which allows for leptokurtic and skewed distributions.

The automobile sector in Pakistan was launched in mid-50’s and now develops into a multi-billion rupee industry, with over 2,000 original equipment manufacturer and seller unit both formal and informal, manufacturing a large range of products. The industry has 300,000 to 500,000 employees. In the past, studies have found that the automobile sector in Pakistan is still restrained in size and has not yet obtained the status by promoting broad based manufacturing sector growth. The basic causes of this state of affairs include the scope of the enabling framework such as institutional, managerial, human resources, financial and government policy desired to achieve greater effectiveness, competition, competitiveness and productivity. Pakistan’s share in world export trade of automobile products is too small and minor that the growth factors of exports are insufficient to satisfy the global level of exports and to enter the export market. Less consciousness and lack of export potential make the un-competitiveness to achieve the objectives and goals of the domestic market. In order to establish the firm profitable and more acceptable by the consumers, it is important that the adoption or the patronage factors of automobile sector of Pakistan be analyzed and understood so that the necessary alterations in the firm’s profitability can be done according to that. The term “leverage” is a usage of financial resources and on loan capital to amplify the probable return of an investment. Put differently, the debt used to finance a firm's assets is also known as leverage. Most