The effect of patronage buying motives on small business profitability: evidence from Indonesia
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Received January 29, 2021;Accepted March 17, 2021;Published March 24, 2021
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-1988-3109
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Link to ORCID Index: https://orcid.org/0000-0002-6135-0667,
Link to ORCID Index: https://orcid.org/0000-0003-0493-0101,
Link to ORCID Index: https://orcid.org/0000-0001-6209-0193,
Link to ORCID Index: https://orcid.org/0000-0002-0643-3865 -
DOIhttp://dx.doi.org/10.21511/im.17(1).2021.09
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Article InfoVolume 17 2021, Issue #1, pp. 109-119
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Cited by3 articlesJournal title: Journal of business sectorsArticle title: Selected demographic determinants of CSR, financial & environmental management and business ethics in SMEsDOI: 10.62222/FEND1256Volume: 2 / Issue: 1 / First page: 79 / Year: 2024Contributors: Zdenko MetzkerJournal title: Journal of Education for BusinessArticle title: Is Google Classroom, Zoom, and WhatsApp effective for accounting students during the COVID-19 pandemic?DOI: 10.1080/08832323.2021.2023853Volume: 97 / Issue: 8 / First page: 555 / Year: 2022Contributors: Chalarce TotananJournal title: Banks and Bank SystemsArticle title: Impact of the COVID-19 pandemic and New Normal implementation on credit risk and profitability of Indonesian banking institutionsDOI: 10.21511/bbs.16(3).2021.10Volume: 16 / Issue: 3 / First page: 104 / Year: 2021Contributors: Sri Wahyuni, Pujiharto, Siti Nur Azizah, Zulfikar Zulfikar
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This study aims to find and analyze the profitability level of Fried Onion Small Business in Palu City, influenced by Patronage Buying Motives (PBM), which consist of company reputation, location of sales, selling price and guarantee to profitability. The population of this study was 52. Population was chosen based on small business that still survives in fried onion business as a local business. The sample taken by purposive sampling was 35. Data collection was carried out by distributing questionnaires to the managers of fried onion small businesses. The analytical tool used is multiple linear analysis. The results shows that F test of PBM had a significant influence on profitability at 0,822 or 82.2%. This means a very strong influence of the value of PBM. T-test shows that corporate reputation is of significant value of 0,286, location of sales – 0,426, and selling price has a significant value of the 0.235 influence on profitability, except guarantees that do not affect profitability because the value of 0.151 is less than the t table value of 2.0395. The impact of this study implies that small food businesses do not really need a guarantee like electronic products, because reputation and quality have become their guarantee.
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JEL Classification (Paper profile tab)M31, M40, M20
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References46
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Tables2
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Figures0
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- Table 1. Variable indicators
- Table 2. Multiple linear regression calculation results
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Conceptualization
Chalarce Totanan
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Formal Analysis
Chalarce Totanan, Rahayu Indriasari
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Resources
Chalarce Totanan, Nina Yusnita Yamin
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Supervision
Chalarce Totanan
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Writing – review & editing
Chalarce Totanan, Nina Yusnita Yamin
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Data curation
Arung Gihna Mayapada, Nina Yusnita Yamin, Ni Made Suwitri Parwati
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Investigation
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Project administration
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Software
Arung Gihna Mayapada
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Writing – original draft
Arung Gihna Mayapada, Ni Made Suwitri Parwati
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Funding acquisition
Nina Yusnita Yamin
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Methodology
Nina Yusnita Yamin, Rahayu Indriasari
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Validation
Ni Made Suwitri Parwati, Rahayu Indriasari
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Visualization
Rahayu Indriasari
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Conceptualization
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The moderating role of firm size and interest rate in capital structure of the firms: selected sample from sugar sector of Pakistan
Sarfraz Hussain, Abdul Quddus
, Pham Phat Tien
, Muhammad Rafiq
, Drahomíra Pavelková
doi: http://dx.doi.org/10.21511/imfi.17(4).2020.29
Investment Management and Financial Innovations Volume 17, 2020 Issue #4 pp. 341-355 Views: 4570 Downloads: 621 TO CITE АНОТАЦІЯThe selection of financing is a top priority for businesses, particularly in short- and long-term investment decisions. Mixing debt and equity leads to decisions on the financial structure for businesses. This research analyzes the moderate position of company size and the interest rate in the capital structure over six years (2013–2018) for 29 listed Pakistani enterprises operating in the sugar market. This research employed static panel analysis and dynamic panel analysis on linear and nonlinear regression methods. The capital structure included debt to capital ratio, non-current liabilities, plus current liabilities to capital as a dependent variable. Independent variables were profitability, firm size, tangibility, Non-Debt Tax Shield, liquidity, and macroeconomic variables were exchange rates and interest rates. The investigation reported that profitability, firm size, and Non-Debt Tax Shield were significant and negative, while tangibility and interest rates significantly and positively affected debt to capital ratio. This means the sugar sector has greater financial leverage to manage the funding obligations for the better performance of firms. Therefore, the outcomes revealed that the moderators have an important influence on capital structure.
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Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 4337 Downloads: 740 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
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ESG disclosure and financial performance: Empirical study of Vietnamese commercial banks
Banks and Bank Systems Volume 19, 2024 Issue #1 pp. 208-220 Views: 4027 Downloads: 1184 TO CITE АНОТАЦІЯEnvironmental, social, and governance (ESG) disclosure becomes vital for banks to be transparent and accountable for their investments and lending decisions to shareholders, regulators, and society. The potential enhancement of shareholder value through ESG disclosure is still inconsistent. Empirical studies on the association between ESG disclosure and financial performance are mixed and limited in emerging economies. This study aims to examine whether ESG disclosure impacts the financial performance of 24 Vietnamese commercial banks in terms of return on assets (ROA), return on equity (ROE), and net interest margin (NIM). The study uses the feasible generalized least squares estimation method based on panel data from 2018 to 2022. The study employs content analysis on 12 themes related to environmental, social, and governance pillars to score policy disclosure based on the Fair Finance Guide Methodology. The results highlight the positive effects of ESG policy disclosure, individual environment disclosure (E), and individual governance disclosure (G) on bank financial performance. Notably, ESG, E, and G have the largest influence on ROE, with coefficients of 0.051, 0.036, and 0.027, respectively, at a 5% significance level. However, the study does not provide evidence of a statistically significant association between social disclosure and financial performance. These results provide empirical evidence for regulators and bank managers to shape ESG policies and practices aligning with international standards.
Acknowledgment
ESG disclosure score of 11 banks as primary data in this study is conducted under the project coordinated by the Fair Finance Vietnam coalition, as part of Fair Finance International.