Narrow Results

The paper examines the determinants of profitability of real estate companies by using panel data of Vietnamese listed companies on the Hanoi stock exchange (HNX) and Ho Chi Minh City stock exchange (HOSE) from 2007 to 2020. Profitability ratios are measured by return on assets (ROA) and return on equity (ROE). The results indicate that the cost on revenue ratio, debt-to-equity ratio and the crisis and COVID-19 pandemic are negatively correlated with firm profitability. Meanwhile, the sales to current assets ratio, money supply growth rate and economic growth rate (GDPG) provide a positive correlation with profitability. We find that firm size and equity to total assets have positive effects on ROA, while there is a negative relationship between equity to total assets and ROE, and not enough evidence to conclude how firm size affects ROE. The study thereby provides suggestions and recommendations for the administrators of the government, real estate companies and investors in Vietnam.

This paper investigates the relationship between e-banking and commercial bank performance in Bangladesh. A five-year aggregate quarterly commercial bank data as provided by Payment System Department of Central Bank of Bangladesh was used in this study. A multiple regression procedure was used to determine the significance of the relationship between the independent variables (electronic banking indicators) and the profitability measures of return on assets (ROA) and return on equity (ROE) as the dependent variables. The findings were that only IB was statistically significant at 0.01% level under both ROA and ROE models with p-values of 0.0000 and 0.0000, respectively. However, the predictive power of ROE was found to be higher than ROA using adjusted r-square and d-statistic. Some of the other variables (POS, CHQ) were also statistically significant ($p>0.01$) and the rest of variables had mixed result. The results show that at an aggregate level, commercial banks in Bangladesh widely use the traditional banking methods such as use of cheques. The results are expected to inform bank managers on the need to discover the optimal supply of electronic banking services such as MOB, EFT and ATM payment systems in order to improve bank profitability. This study will further inform policy makers on the need to improve on Information and Communication Technology (ICT) in order to cater for optimal use of electronic banking service in Bangladesh.

This chapter analyzes how financial performance indicators and gender equality of large cap stocks impact governance scores. In particular, we examine how the return on equity, reinvestment rate, price to book value, market capitalization and gender equality of large cap firms in Europe are related to their governance pillar scores. Based on the Euronext 100 index, we conduct a multiple regression analysis for the period, 2010–2020. As regards the above financial indicators, we find that return on equity and market cap have a significant positive impact on governance scores. In addition, we conclude that reinvestment rate and price to book value have a negative and significant effect on governance scores. Finally, the low percentage of female board membership is confirmed by the non-effect of gender inequality on governance scores. Our empirical investigation provides evidence in support of the moderate governance score in European companies. However, European companies should consider the benefits of good governance practices and apply sustainable strategies.