Financial Performance Determinants of Organizations: The Case of Mongolian Companies

Abstract

This paper is aimed at examining what ratios can determine financial performance of Mongolian companies which are divided into 6 major sectors to increase their competitiveness. This study analyzes the performance of companies in terms of profitability and its association with multiple determinants for 100 Mongolian joint stock companies ( JSC) listed in Mongolian Stock Exchange (MSE). Financial statements of those companies from MSE are evaluated by panel regression covering the period of 2012-2015. Return on Assets (ROA), Return on Equity (ROE), and Return on Sales (ROS) are chosen as performance indicators, while growth in sales, growth in profit, growth in assets, earnings per share, gross profit margin, cost to revenue ratio, return on costs, short-term debt to assets ratio, current assets to total assets ratio, long-term debt to total assets, quick ratio, current ratio, and cash ratio are used as explanatory variables. The panel regression results show that ROA has more determinants than ROE and ROS, such as earnings per share, return on costs have positive impacts, while short-term debts to total assets ratio and cost to revenue ratio have negative impacts. Growth in sales, earnings per share and costs to revenue ratio influence positively the financial performance of an organization by ROS, while return on cost has a positive effect on the financial performance measured by return on sale.

Evaluation of Return on Assets on Market Capitalization of Quoted Construction/Real Estate and Conglomerate Companies in Nigeria

“…Also, Batchimeg (2017) carried out a study on the determining factor of performance of 100 Mongolian joint stock companies (JSC) quoted on the Mongolian Stock Exchange (MSE) for a period of 4years from 2012 to 2015. The results of the panel regression show that ROA have more determinants that ROE and ROS such that ROA had significant influences towards Price-to-Book Value of the firms which influences firm value.…”

Debt to Equity Levels in Polish Nonprofit Organisations

“…There are the differences in treating the entitlements of people who control entities in prohibiting the distribution of earnings and excess of revenues over expenses of the organisation: Equity type capital providers can expect a return on money in case the business makes an excess of revenues over expenses from operations (Bayaraa, 2017). Non-profit entities do not have the right to issue stock whereas the equity of non-profit entities is issued by donors and persons who have no right to express control over the non-profit organisation (Rahman et al, 2017b;Dubravska et al, 2015).…”

“…Some non-profit entities use only equity and sources from direct donations, redistributing it from the donors to the beneficiaries. Other non-profit entities collect free of charge goods for resale, using incomes for realising the mission (Banociova & Martinkova, 2017). Many non-profit entities are almost identical in operating processes with for-profit businesses but are non-profit because of their mission.…”

Measurement of Impact of Selected Industrial Engineering Practices on Companies’ Economic Performance

“…Business performance and market positioning are key concepts for today's businesses (Yoo & Seo, 2017). Any competitive advantage that firms can get is very valuable, and firms are looking for ways to reach them (Koraus et al, 2015;Soltes & Gavurova, 2015;Virglerova et al, 2017;Batchimeg, 2017;Belas et al, 2017). One of the possible ways how to increase productivity, change a corporate culture or cleaning up shop floors, reduce cycle time and improve value for customers is lean or in the case of reducing waste and rework six sigma (Naslund, 2008).…”