In 2014, FERC adopted a new theory of capital markets for the purpose of setting authorized returns-on-equity: that all observed dividends and interest rates were anomalous and therefore unreliable ...indicators of the returns necessary for investors to hold the stocks and bonds of transmission owners. The new theory, used to justify higher authorized ROEs, rejected evidence of fundamental conditions in capital markets and explicitly adopted arguments by investor-owned utilities regarding unreliable markets. After a judicial remand, FERC abandoned the new theory, but consumers in New England and the Midwest were arbitrarily charged hundreds of millions of dollars over several years due to unjust and unreasonable rates for transmission service.
Using stock returns from a sample of 94 countries over the period from 22 January to 24 March 2022, we document a negative relationship between the Ukraine–Russia war and world stock market returns. ...We thus provide the first empirical evidence.
•We provide the first empirical evidence of the effect of the Ukraine–Russia war on world stock market returns.•The war has negatively impacted the world’s stock indices and this effect was more significant after the invasion of Ukraine.•The countries bordering Ukraine and Russia were the most affected, as were the UN countries that condemned the war.
•China's banks are more cost efficient than profit efficient.•Efficiency has improved over time.•Adjustment costs may exceed efficiency gains.•Size, market power, ownership, and listing help explain ...efficiency of banks.
This paper examines the cost and profit efficiency of four types of Chinese commercial banks over the period from 2002 to 2013. We find that the cost and profit efficiencies improved across all types of Chinese domestic banks in general and the banks are more profit-efficient than cost efficient. Foreign banks are the most cost efficient but the least profit efficient. The profit efficiency gap between foreign banks and domestic banks has widened after the World Trade Organization transition period (2007–2013). Ownership structure, market competition, bank size, and listing status are the main determinants of the efficiency of Chinese banks. We also find a causal relationship between efficiency and SROE by using the panel auto regression method. The evidence from the shadow return on equity (SROE) suggests that policy makers should be cautious of the adjustment costs imposed by the recapitalization process, which offsets the efficiency gains.
This study adopts the panel data regression model to analyze the factors affecting ROE (return on equity) of 35 domestic banks before and after the COVID-19 pandemic. The study distinguishes ...independent variables into three types of indicators, including derivative, asset allocation and income sources. The empirical results discovered that domestic banks' operating derivatives based on trading purposes interest-rate and exchange-rate do not significantly improve profitability either before or after the COVID-19 pandemic, bank's operating nontrading purposes derivatives interest-rate and exchange-rate arc used for risk hedging rather than expected to increase bank profitability. Asset allocation before the COVID-19 pandemic only "Due from the central bank and other banks" is positively affected, respond the capital turnover needs of the bank can obtain higher interest income. However, in after the COVID-19 pandemic, only "Discounts and loans" negatively affected by the low narrowed interest rate spread, it may
Kinerja keuangan menjadi salah satu cara untuk melihat apakah sebuah perusahaan memiliki keuangan yangsehat atau tidak. Selain itu, prediksi pertumbuhan laba juga menjadi alat untuk melihat prospek ...keuntungan perusahaan di amsa depan, yang membantu dalam mengambil keputusan investasi pada suatu perusahaan. Penelitian ini bertujuan untuk menganalisis pengaruh rasio keuangan Return On Equity terhadap pertumbuhan laba. Metode yang digunakan dalam penelitian ini menggunakan metode pendekatan kuantitatif. Alat analisis yang digunakan adalah regresi linear sederhana. Regresi linear sederhana digunakan untuk menguji pengaruh satu variabel bebas (independen) terhadap variabel terikat (independen). Jenis data yang digunakan dalam penelitian ini adalah data kuantitatif yang berupa laporan keuangan dari seluruh Bank periode 2019-2021 yang listingnya terdaftar di Bursa Efek Indonesia (BEI). Hasil penelitian ini menunjukan tidak ada pengaruh yang signifikan antara ROE terhadap pertumbuhan laba, sehingga dalam memprediksi pertumbuhan laba suatu perusahaan, diperlukan analisis rasio keuangan yang lain.
•ESG practices' impact on financial profitability varies.•The social pillar score negatively affects the ROE.•The environmental pillar score negatively affects the ROE in low quantiles.•The ...governance pillar score has a consistently negative impact on ROE.•Policymakers should take into account the ESG-financial performance trade off.
We examine the impact of environmental, social, and governance (ESG) practices on financial performance among Nifty 50 companies in India from 2015 to 2022. Using fixed-effects panel quantile regression, we observe that the relationship between ESG practices and financial profitability varies across the return on equity (ROE) distribution. While the environmental pillar score and the governance pillar score consistently negatively impact ROE across almost all quantiles with high statistical significance, the social pillar score exhibits mostly an insignificant relationship. Its impact is negative but only mildly statistically significant in the lower end of the ROE distribution. The findings and their implications are important to investors, corporate executives, and policymakers.
This study aims to analyze the effect of the ratio of sharia financing products conducted with mudharabah, musyarakah, murabahah, istishna, and ijarah contracts on the Return On Equity of Sharia ...Commercial Banks in Indonesia uses multiple linear regression analysis. The research finding that mudharabah, musyarakah, murabahah, ijarah financing have an effect on Return on Equity, while istishna has no effect on Return on Equity of Islamic banks in Indonesia.
Abstrak
Tujuan dari penelitian ini adalah untuk menganalisis pengaruh rasio produk pembiayaan syariah yang dilakukan dengan akad mudharabah, musyarakah, murabahah, istishna, dan ijarah pada Bank Umum Syariah di Indonesia dengan menggunakan rasio Return On Equity. Teknik analisis yang digunakan adalah regresi linier berganda. Hasil penelitian menunjukkan bahwa pembiayaan mudharabah, musyarakah, murabahah, ijarah berpengaruh terhadap Return on Equity dan istishna tidak berpengaruh terhadap Return on Equity Bank Umum syariah di Indonesia.
The purpose of this study is to examine the impact of various factors on the level of non-performing loans (NPL) and, to determine the moderating role of efficiency on the relationship between ...different factors and NPL in China. The current study addressed four important factors to examine the role in relation to the NPL. These factors include; return on assets (ROA), return on equity (ROE), economic sustainability and political instability index. Furthermore, the moderating role of efficiency is addressed between these factors and NPL. Secondary data is used in this study to consider the empirical results. Secondary data related to ROA, ROE, economic sustainability and political instability index is collected from different sources. Consistent with the literature, we found significant effect of ROA, ROE, economic sustainability and political instability index on NPL. Banking sector of China is majorly influenced by these factors due to the effect on NPLs. Furthermore, the efficiency has contribution to the NPLs as moderating variable. Results of this study are helpful for the management of banking industry to resolve various issues related to NPLs.
The current study investigates the association between corporate social responsibility (CSR) and financial performance (FP), and discusses the driving motives of banks to engage in CSR. Three ...motives, namely, strategic choices, altruism, and greenwashing, suggest that the relationship between CSR and FP is positive, non-negative, and non-existent, respectively. We obtained our sample, which covered 2003–2009, from the Ethical Investment Research Service (EIRIS) databank and Bankscope database. The data consists of 162 banks in 22 countries. We then classified the banks into four types based on their degree of engagement in CSR. This study proposes the use of an extended version of the Heckman two-step regression, in which the first step adopts a multinomial logit model, and the second step estimates the performance equation with the inverse Mills ratio generated by the first step. The empirical results show that CSR positively associates with FP in terms of return on assets, return on equity, net interest income, and non-interest income. In contrast, CSR negatively associates with non-performing loans. Hence, strategic choice is the primary motive of banks to engage in CSR.
The study aims at evaluating the performance of Palestinian Islamic banks for the efficiency of managing financing risks and linking them with the quality of investment portfolios according to the ...modified return on equity model (DuPont) and bank financial ratios, also to identify the types of risks of Islamic financing instruments, And the volume of investments using Islamic financing formulas, To achieve the objectives of the study, the researcher used the descriptive and analytical comparative approach to the case study, The sample of the study consisted of the Palestinian Islamic Bank and the Arab Islamic Bank since they are the most active Islamic banks in Palestine. The results of the study showed that the average of the return on equity index according to DuPont model of the Palestinian Islamic Bank was 12.5% compared to the Arab Islamic Bank, which scored 6.8%, this is due to the high rate of return on assets and financial leverage in the Palestinian Islamic Bank, the results also indicated that the financing risks in the Palestinian Islamic Bank are greater with sufficient provision, As a result, its returns increased compared to the Arab Islamic Bank. The study also showed results that reflect the efficiency and remarkable success of the Islamic banks in the process of managing credit risks. This reflected positively on the performance index of those banks by building good quality credit portfolios, which enabled them to compete with traditional banks. The study concluded that Islamic banks should diversify and develop their financing instruments and direct them towards productive investment opportunities and raise the degree of cooperation in the field of credit information exchange. هدفت الدراسة الى تقييم أداء المصارف الإسلامية الفلسطينية لكفاءة إدارة مخاطر التمويل وربطها مع جودة المحافظ الاستثمارية وفقا لنموذج العائد على حقوق الملكية المعدل )دوبونت) والنسب المالية المصرفية، كذلك التعرف على أنواع المخاطر المصرفية ومخاطر صيغ التمويل الإسلامي، وحجم التوظيفات باستخدام صيغ التمويل الإسلامية، ولتحقيق أهداف الدراسة استخدم الباحث المنهج الوصفي التحليلي والمنهج المقارن لدراسة الحالة، ولمعالجة البيانات استخدم الباحث برنامج SPSS، وتكونت عينة الدراسة من المصرف الاسلامي الفلسطيني والإسلامي العربي باعتبارهما من المصارف الإسلامية الناشطة في فلسطين، وأظهرت نتائج الدراسة أن المتوسط الحسابي لمؤشر العائد على حقوق الملكية وفق نموذج دوبونت للمصرف الاسلامي الفلسطيني قد سجل ما نسبته 12.5% مقارنة مع المصرف الاسلامي العربي الذي سجل ما نسبته 6.8%، ويعود السبب في ذلك إلى ارتفاع معدل العائد على الاصول والرفع المالي للمصرف، كما دلت النتائج أن مخاطر التمويل في المصرف الاسلامي الفلسطيني هي أكبر مع وجود مخصصات كافية، وبالنتيجة ارتفاع عوائده مقارنة مع المصرف الاسلامي العربي، كما بينت الدراسة أن مؤشر العائد على حقوق الملكية المعدل نموذج متكامل لتقييم الأداء ولوصف وقياس العلاقة التبادلية بين العائد والمخاطرة، وجاءت النتائج لتعكس الكفاءة والنجاح الملحوظ للمصارف الاسلامية الفلسطينية في عمليه إدارة مخاطر الائتمان، مما انعكس ذلك ايجابياً على مؤشر الاداء لتلك المصارف من خلال بناء محافظ استثمارية ذات جودة جيدة مكنها من منافسة المصارف التقليدية، وقد خلصت الدراسة أن على المصارف الإسلامية أن تنوع وتطور من أدواتها التمويلية وتوجيهها نحو الفرص الاستثمارية الانتاجية وأن ترفع من درجة التعاون في مجال تبادل المعلومات الائتمانية.
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