Risk and performances: financial performance of sime darby berhad

W.Hussin, Wan Nur Imani (2017): Risk and performances: financial performance of sime darby berhad.

Abstract

The aim of this study are used to investigate the relationship between company performance and the profitability of the company. Firm organisation that used to identify this relationship is Sime Darby Berhad. In this study, the factors that indicate to profitability such as return on asset (ROA), return on equity (ROE), return on investment (ROI), average collection period (ACP), leverage, remuneration, liquidity, operational etc. Financial instrument merely related to financial performance of the organization either internal or external financial aspect. Financial transaction usually known as an agreement, exchange of payment or communication between two parts of transaction. Financial transaction involved two parties among in the business which is buyer seller, whether businesses or individual. Financial risk that will affect company profitability such as credit risk, liquidity risk, operational risk, market risk and legal risk. In managing financial risk in banking institution, organization need to adopt with barriers or risks that may cross the transaction such as risk transaction could be as default, interest rate, market risk along with liquidity and operation. Financial risk be measure by the regression and correlation analysis to define the significant relationship between business entity and variable that related to analysis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Liquidity risk, operational risk, profitability, risk and return, correlation and regression.
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; N - Economic History > N0 - General

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