• Journal of Distribution Science
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• v.14 no.4
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• pp.13-20
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• 2016

Purpose - This paper attempts to determine the importance of financial sustainability and the impact of Selling, General and Administrative Expenses (SG&A) on the financial sustainability of the IT industry. Research design, data, and methodology - Primarily the impact of SG&A expenditure on the sales revenue, assets, gross margins and profit is ascertained. After that the impact of SG&A expenditure, sales revenue, assets, gross margins and profit on the financial sustainability i.e., return on assets is worked out. Finally the impacts of financial sustainability i.e., return on assets on total enterprise value and market valuation multiples are found out. Results - The empirical result shows that SG&A expenditure most strongly impacted sales revenue, assets, gross margins and profit positively. Financial sustainability impacted in mixed manner with SG&A expenditure, sales revenue, assets, gross margins and profit. Assets and gross margins have weak positive impact on financial sustainability. Sales revenue has no impact on financial sustainability. Finally financial sustainability had moderate positive impact on total enterprise value and had no impact on market valuation multiples. Conclusions - SG&A expense has moderate positive impact on the financial sustainability and magnitude is very low.

• Journal of Korea Trade
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• v.26 no.2
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• pp.84-99
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• 2022

Purpose - This study carried out an empirical study of the impact of sustainability - which has been gaining attention as challenges are arising in supply chains based on existing trade networks due to the impact of the COVID-19 pandemic - on SCM performance and financial performance of Korean SMEs. The study seeks to propose a measurement model to enhance the SCM performance and financial performance of Korean SMEs and to identify the relationship between sustainability, SCM performance and financial performance to suggest implications to SMEs, governments, and relevant organizations. Design/methodology - Our Analysis established hypotheses that economic sustainability, environmental sustainability, and other factors related to sustainability have a positive impact on SCM performance and financial performance as well as SCM performance has a positive impact on financial performance, making empirical validations by utilizing Structural Equation Modeling based on data collected through survey from Korean SMEs. Findings - According to an empirical study, although environmental sustainability and economic sustainability among factors of sustainability had a positive influence on SCM performance, social sustainability did not have a statistically significant influence. Furthermore, it was learned that only economic sustainability had a positive influence on financial performance while SCM performance has a positive influence on financial performance. Originality/value - This empirical study explored the relationship between SCM performance and financial performance of Korean SMEs with a high tendency to depend on specific supply chains when the international trade network is in confusion and/or the global supply chain has collapsed. If Korean SMEs allocate management resources to the factors deducted from this study, they would be able to build more efficient supply chains and improve financial performance to improve sustainability.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.55-68
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• 2017

This research is carried out to investigate the relationship between sustainability practices and performance in a financial sense for Malaysian Oil and Gas sector. Objectives include to study the state of sustainability disclosure among Malaysian oil and gas companies, to understand if companies that practiced sustainability had better performances to their financial bottom-line and to conduct a data analysis to understand the relationship between Environmental, social and governance performance [represented by the acronym ACSI] and financial performance. Sustainability performance is measured using ACSI checklist, which is an adaptation of the GRI 3.0 by Global reporting initiative while financial performance was measured on financial and profitability parameters namely EBITDA, EPS and PE ratio. Secondary data sources are used which were then converted into a rating scale to develop quantitative data. SPSS 21 is used for the analysis. The result shows that the majority of oil and gas companies in Malaysia had poor performance in terms of sustainability disclosure. On all three chosen profitability parameters, the companies that practiced sustainability were found to perform better than their counterparts that did not. Strong and significant relationship exists between sustainability practices and better financial performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1121-1133
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• 2021

The paper examines the impacts of the various sustainability dimensions on the financial performance of commercial banks in three Arab countries. Three dimensions have been considered as constitutive of the term sustainable development (social, economic, and environmental). The relationship between the sustainability dimensions of companies and accounting indicators was analyzed. The main hypothesis posits that the dimensions of sustainability do not have a significant and positive effect on the financial performance of the commercial banks. The study population consisted of commercial banks operating in three Arab countries (Oman, United Arab Emirates, and Jordan); the period of the study is from 2007 to 2018. The data were collected from the financial reports and sustainability reports of each bank through the Internet. The overall results of the study showed a moderately positive relationship between all sustainability dimensions and the banks' financial performance. The main contribution of the research is to study the dimensions of sustainability reports as contained in the Global Reporting Initiative (GRI-G4) and their impacts on the financial performance of commercial banks. Thus, this research will contribute to increasing the interest of the banks in sustainable development in a context where this research in Arab countries is scarce.

• Journal of Distribution Science
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• v.21 no.3
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• pp.71-82
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• 2023

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.

• Asian Journal of Business Environment
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• v.10 no.1
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• pp.37-43
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• 2020

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

• The Journal of the Convergence on Culture Technology
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• v.10 no.1
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• pp.369-378
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• 2024

The aim of this study is to conduct a comparative study on the sustainability of the public pension. While the mainstream view on the sustainability of the public pension presupposes financial sustainability, the original purpose of guaranteeing retirement income has been overlooked. The sustainability of the public pension needs to consider not only financial sustainability, but also various factors such as demographic structure, labor productivity, industrial structure, life cycle of working households, government spending on public pensions, economic growth, and social consensus. With this awareness of the problem, this study conducted a fuzzy set qualitative comparative study in 44 countries, including Korea. As a result of the analysis, it was found that Korea had high financial sustainability for a single year, but relatively low integration related to social consultation and public pension operation, and adequacy such as the degree of guarantee and linkage with other pension systems was also relatively low. The sustainability of the broader public pension should be emphasized not only for financial sustainability, but also for adequacy and integration.

• The Journal of the Korea Contents Association
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• v.20 no.1
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• pp.403-416
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• 2020

Unlike in the past, the environment related to CSR activities of financial services companies changed, such as lower interest rates, easier access to knowledge and the environment for risk management of financial services companies changed, including global economic instability, increased regulations, and exposure of new technologies associated with operating methods. This study examined the effects of CSR activities and risk management on sustainability and mediating effects of corporate image among financial service companies. The result of the study are as follows. First, the CSR's legal responsibilities, management in disaster risk and strategic risks of financial service enterprise have positive effect on sustainability, however, the management of CSR's ethical responsibilities, discretionary responsibilities, operational and financial risks have shown to have negative effect Second, CSR's legal responsibilities, discretionary responsibilities and the management of disaster risks act as mediating role between corporate image and sustainability. As a result, when financial service enterprises concentrate on managing CSR's Legal responsibilities and disaster risks, it was found that the corporate image improves and enhancement of sustainability.

• The Journal of Industrial Distribution & Business
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• v.11 no.3
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• pp.19-28
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• 2020

Purpose: As nonprofit organizations have made strides in international development, ensuring financial resources has become pivotal to determine what nonprofits strive for and how they perform with the budget generated without efforts for profit-making. The purpose of this research aims to investigate the determinants of donation intention that are affected by television fundraising campaigns in order to improve financial sustainability. This study applied the effects of emotional sympathy, economic value, accountability, relevance, and sustainability on donation intention. Research design, data, and methodology: This study collected data via an online survey by classifying respondents based on donation experiences and applied statistical analyses such as factor analysis, regression, and ANOVA. This study selected television fundraising campaigns aligned with criteria of the Sustainable Development Goals (SDGs). Results: The results of this study showed that emotional sympathy was a dominant variable regardless of previous donation experiences, while economic value was significant for inexperienced donors. Conclusions: The results provide implications to nonprofit organizations for fundraising as to what aspects need to be addressed in order to draw donors' motivation for giving behavior. Given efforts for successful implementation of development agenda, it is fundamental to establish financial sustainability of nonprofit organizations and build up public awareness.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.731-738
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• 2020

Though their activities, companies have an impact on environmental problems and nature conservation. The accounting sector can play a role in environmental conservation efforts related to environmental costs, and the implemention of the Corporate Sustainability Management System (CSMS) could be a key factor that can improve the company's financial performance. This study aims to determine how green accounting through the application of CSMS can improve the financial performance of manufacturing companies in Indonesia, a developing country. The sampling method used was purposive sampling, while the research sample consisted of 38 companies that had followed PROPER and were indexed on the IDX. Data were analyzed using the Structural Equation Modeling (SEM) method known as the Partial Least Square (PLS) method. The results of this study indicate that manufacturing companies in Indonesia are able to implement green accounting by allocating appropriate environmental costs by earmarking a portion to carry CSMS implementation so as to improve financial performance. People in Indonesia consider that manufacturing companies that have good company rankings in the evaluation program for company performance ratings in environmental management run by the Indonesian Ministry of Environment are in a position to generate customer loyalty, especially in financial performance.