International Economic and Finance Review

The Case Study of Capital Structure in Affecting Return on Equity (ROE) Among Chinese Companies

2023-10-10T15:31:11+00:00

The case study for the capital structure research had been crucial to address the financial performance for the business. In the recent trend of business, the strategic development of the business growth had been dependent on the capital structure funding where the ratio between the debt and equity often become the pillar to determine the financial performance for the business. This triggered the study to develop the quantitative method research to explore the relationship of debt equity ratio representing the capital structure funding for business against the return on equity (ROE) representing the financial performance of the business. The target study will be based on the public listed companies in China mainly from Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). The results and findings from the quantitative study had found the significant positive relationship being exist between the debt equity ratio and ROE which aligned with the initial assessment from the literature review. This had been crucial contribution for the investors to understand the potential earning derived from the ROE inducing the understanding where the higher debt funding will encourage better return on the equity investment which will become more important consideration among the investors.

Development of Corporate-Based ZISWAF Fundraising Model in Realizing SDGs from Maqashid Syariah Perspective

2024-02-24T04:27:05+00:00

This study examines the corporate-based ZISWAF (Zakat, Infaq, Sedekah, Wakaf) fundraising model grounded in Maqashid Syariah with the hope of contributing to the achievement of SDGs (Sustainable Development Goals) and realizing the welfare of the community. The descriptive qualitative research design employs literature review to gather data, revealing the significant potential of this model in reaching its objectives. Research findings indicate that the model excels in alignment with Islamic values, efficiency and effectiveness in fund management, sustainability of funding, and wide-ranging impact through extensive corporate outreach. To develop and implement this model, it requires strengthening collaboration among corporations, ZISWAF institutions, government, and other stakeholders, developing programs focusing on SDGs and community welfare, enhancing education for corporations and the public, reinforcing supportive regulations, and conducting regular monitoring and evaluation to ensure its effectiveness. The corporate-based ZISWAF fundraising model grounded in Maqashid Syariah is regarded as an innovative solution that can bring broad benefits to society, with support and commitment from various parties for its implementation. This study recommends several steps for the development and implementation of this model, including strengthening collaboration, program development, education enhancement, regulatory reinforcement, and monitoring and evaluation.

The Influence of Sharia Financial Performance Towards Islamic Social Reporting with Islamic Corporate Governance as a Moderate Variable

2024-02-03T10:52:20+00:00

This study examine to retest the influence of Sharia Financial Performance towards Islamic Social Reporting with Islamic Corporate Governance as a moderate variable (empirical study on Indonesia Islamic Commercial Bank from 2014-2021). The hypothesis examine by using MRA regression and panel data regression. The population in this research are all the Islamic Commercial Banks that listed on OJK from 2014-2021. The sampling methods that used in this research is purposive sampling and could manage to obtained 96 sample from 12 Islamic Commercial Banks. The results shows that: (1) Return On Assets, Capital Adequacy Ratio, and Debt to Equity Ratio did not influenced the Islamic Social Reporting; (2) Financing to Debt Ratio influenced the disclosure did Islamic Social Reporting; and (3) Board of Commissioner could influenced Return On Assets towards deepening of Islamic Social Reporting, Islamic Supervisory Board could be moderating Return On Assets, Financing to Debt Ratio and Capital Adequacy Ratio towards strengthening Islamic Social Reporting, While the age of the companies could moderating Return On Assets, and Financing to Debt Ratio towards Islamic Social Reporting.

Financial Performance Analysis Using Financial Ratios At PT Diamond Food Indonesia Tbk

2024-02-22T10:57:23+00:00

The purpose of this research is to analyse the financial performance of PT Diamond Food Indonesia Tbk during the period from 2020 to 2022 using financial ratio analysis, including liquidity, solvency, profitability, and activity ratios. The method employed in this research is quantitative descriptive method with data collection conducted through documentation and literature study. The data analysed are derived from secondary data sources, namely the annual financial reports for the period 2020 to 2022 obtained from the official website of the Indonesia stock Exchange. The research findings indicate that the financial performance of PT Diamond Food Indonesia Tbk. is considered “Very Good” based on liquidity and solvency ratios. However, the company’s financial performance is deemed “Less Favourable” based on profitability and activity ratios.