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1.

Can a Company’s Pre-IPO Return on Assets (ROA) , Return on Equity (ROA) and Initial Returns Predict Post-IPO Performance? Joseph K. Mutai Journal of Finance and Economics. 2020 8 (3). doi: 10.12691/jfe-8-3-1 Keywords: initial return, ROA, ROE Context: Initial Public Offerings (IPOs), the offering by companies of stock to the public for the first time, have long been characterised by two anomalous phenomena: an abnormal increase in share price on the first day of trading and a long-run decline in performance. Some researchershave suggested that long run performance of IPOs could be a function of the firm’s pre-IPO performance and initial returns. However, few studies have looked at these relationships in listed companies in Kenya. The objectives of this study were to determine the relationship between pre-IPO and post-IPO performances of companies listed on NSE, and assess the relationship between initial return and post-IPO performance of the companies. An explanatory survey design was adopted for the study. The target population of the study was 12 companies that had sold shares to the public between January 1996 and December 2013 and 54 other companies on the Stock Exchange, which were used to compute benchmarks (NSE-20 share index), against which the companies that had issued IPOs in the study were compared. The entire population (census) of the companies was used in the study. The study analysed company data (prospectuses and annual statements). In addition, daily stock share prices, volumes and NSE indices were collected from the NSE. The study found an average under-pricing of 55.36% and a median under-pricing of 24.71%. The average CAR, M= -0.98, SD=2.08, t(11) = -1.97, p<.05, and ROE, M= -10.07, SD=24.0, z= -1.96, p<.05, were significantly less in three years after an offering than in three before the offering, suggesting a decline in company performance after the offering. Both pre-IPO ROA and ROE could not predict post-IPO ROA and ROE, respectively. Moderate and statistically significant negative relationships were found between initial return and both ROA and ROE differentials, showing that companies with larger abnormal returns had poor long run performance. The study recommends that investors looking for investment in IPOs must study more firm’s statistics, not just ROA and ROE, before choosing to buy stock. Abstract Full Text (PDF) [Epub] Full Text (HTML)

2.

The Impact of Change in CEO Ownership on Future Firm Performance Ching-Chih Wu, Yi-Ru Dong Journal of Finance and Economics. 2020 8 (3). doi: 10.12691/jfe-8-3-2 Keywords: CEO ownership, convergence of interest, entrenchment, signaling hypothesis Context: ...nvergence-of-interests, entrenchment, and signaling hypotheses in different empirical tests. We find a positive relation between Return on Assets (ROA) and changes in CEO ownership when the CEO ownership is decreasing. In contrast, ROA is negative significantly associat... Abstract Full Text (PDF) [Epub] Full Text (HTML)

3.

Investment, Innovation and Firm Performance: Empirical Evidence from Small Manufacturing Industries Rytis Krusinskas, Rasa Norvaisiene, Ausrine Lakstutiene, Sigitas Vaitkevicius Journal of Finance and Economics. 2015 3 (6). doi: 10.12691/jfe-3-6-3 Keywords: innovation, R&D investment, manufacturing companies, technological level, company‘s performance Context: ...ancial indicators (investment to tangible assets, proportion of tangible investments to sales revenue, additional value created, Return on Assets (ROA) , export share in total revenue) were selected to perform cluster analysis between different technological level indust... Abstract Full Text (PDF) [Epub] Full Text (HTML)

4.

Determinants of Tunisian Banks Profitability Lamia Jamel, Sihem Mansour International Journal of Business and Risk Management. 2018 1 (1). doi: 10.12691/ijbrm-1-1-3 Keywords: Return On Assets, Net Interest Margin, bank profitability, financial crisis, generalized least squares panel estimator Context: ...se of the paper is to examine empirically the performance indicators of Tunisian banks. We use Net Interest Margin (NIM) and the Return on Assets (ROA) as profitability measures to determine the affect of bank-specific characteristics, regulatory policies, macroeconomic... Abstract Full Text (PDF) [Epub] Full Text (HTML)

5.

Relationship between Capital Structure and Banks’ Performance; an Evidence of Banks Listed on the Ghana Stock Exchange Bright Obuobi, Xiaoqing Li, Emmanuel Nketiah, Faustina Awuah, Ernest Denkyi Boateng, Agyemang Kwasi Sampene, John Wiredu, Joseph Micah Ashun, Gibbson Adu-Gyamfi, Mavis Adjei International Journal of Econometrics and Financial Management. 2020 8 (1). doi: 10.12691/ijefm-8-1-3 Keywords: banks performance, debt ratio, Ghana stock exchange, capital structure Context: ...ure on the financial performance of banks in Ghana. The study uses debt ratio (DR) as proxy for banks capital structure and uses Return on Assets (ROA) , return on equity (ROE) and earning per share (EPS) as proxies for banks performance measurement in the country unders... Abstract Full Text (PDF) [Epub] Full Text (HTML)

6.

Comparative Efficiency Study between Islamic and Traditional Banks Mohamed H. Rashwan, Heba Ehab Journal of Finance and Economics. 2016 4 (3). doi: 10.12691/jfe-4-3-2 Keywords: Islamic banking, traditional banking, efficiency, financial ratio analysis (FRA), multiple regression analysis, ANOVA Context: ...profit efficiency ratios along with the One-way ANOVA test. The impact of efficiency of the performance of the banks in terms of Return on Assets (ROA) and Return on Equity (ROE) is also evaluated through multiple regression analysis. Lastly, inflation’s effect on the d... Abstract Full Text (PDF) [Epub] Full Text (HTML)

7.

Sustainable Capital Reporting and Financial Performance of Quoted Manufacturing Firms in Nigeria Idorenyin Henry Effiong Journal of Finance and Accounting. 2022 10 (1). doi: 10.12691/jfa-10-1-6 Keywords: sustainable capital reporting, financial performance, Return on Assets (ROA) , quoted manufacturing firms Context: ...uman capital reporting (HCR) and intellectual capital reporting (ICR) on listed manufacturing firms’ profitability as proxied by Return on Assets (ROA) . Five hypotheses were formulated in line with the objectives of the study. Ex-post facto research design was adopted i... Abstract Full Text (PDF) [Epub] Full Text (HTML)

8.

Financial Performance: Does Board Monitoring Committees Matter? An Empirical Analysis of Listed Building Material Companies in Nigeria Seini Odudu Abu, James Uchenna Okpe, Benjamin Iorsue Awen Journal of Finance and Accounting. 2021 9 (1). doi: 10.12691/jfa-9-1-1 Keywords: building materials companies, board monitoring committees, financial performance Context: ...ive committee, finance and general-purpose committee, nomination and remuneration committee and statutory audit committee, while Return on Assets (ROA) used to measured financial performance. Data collected from a secondary source through the annual reports and accounts... Abstract Full Text (PDF) [Epub] Full Text (HTML)

9.

Effect of Corporate Governance Mechanisms on Financial Performance of Insurance Companies in Nigeria Ibe Happy Chukwudike Azutoru, Ugwuanyi Georgina Obinne, Okanya Ogochukwu Chinelo Journal of Finance and Accounting. 2017 5 (3). doi: 10.12691/jfa-5-3-4 Keywords: corporate governance, board size, board independence, directors’ remuneration, directors’ ownership, institutional ownership, foreign ownership, financial performance Context: ...hat, board size and non-executive directors’ remuneration have negative and significant effect on financial performance proxy by Return on Assets (ROA) . While board independence, and institutional ownership indicated positive and significant impact on the financial perf... Abstract Full Text (PDF) [Epub] Full Text (HTML)

10.

Banking Profitability: How does the Credit Risk and Operational Efficiency Effect? Herry Achmad Buchory Journal of Business and Management Sciences. 2015 3 (4). doi: 10.12691/jbms-3-4-3 Keywords: non-performing loans (NPLs), ratio of operating expenses to operating income (OEOI), Return on Assets (ROA) Context: ...ational efficiency as measured by ratio of operating expense to operating income (OEOI) and banking profitability as measured by Return on Assets (ROA) . The method used is descriptive and verification method, with secondary data from financial statements of 26 Regional ... Abstract Full Text (PDF) [Epub] Full Text (HTML)