Volkswagen Company’s Corporate Governance and Liquidity Risk

Jamalludin Helmi, Faten Fatihah (2019): Volkswagen Company’s Corporate Governance and Liquidity Risk.

Abstract

The objectives of the article are three-fold, namely, to investigate, (i) the influence of the selected internal factors to the Return on Asset (ROA), ii) the influence of the selected external factors to the Return on Asset (ROA), and (iii) the influence of both factors (external and internal) factors to the Return on assets (ROA). This research was design as a quantitative, using secondary data in nature by compiling the financial across five years (2014 to 2018) of a specific automobile company. i.e., Volkswagen. Even though the focus was given to three (3) Statements, namely the Profit and Loss Account, the Balance Sheet and The Cash Flow Statement but other related statement such as notes of accounts was also need to be investigated. Other than that, other secondary sources as Text Books, Reference Books, Journals, Articles, Magazines and from the Internet. The data were summarized using Microsoft Excel before analyzed using SPSS application. The findings were as follows: i) The dependent variable was explained 100% by the internal factors, ii) For the external factors, 74.5% of the selected variables (which consisted of STDV, Exchange rate, and Inflation) were able to explain the ROA, and iii) both type of factors (internal and external74.0% of the variance in the dependent variable is explained by the combination of internal and external factors. Furthermore, operation margin has a great effect to the dependent variables. This study, however is limited only to the automobile company. This study also limited to the data used, as it only includes five years performance and financial statements of Volkswagen.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corporate Governance, Liquidity Risk, Return on Asset
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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