Showing 12 results for Profitability
Farhad Khodadad Kashi, Mansour Zarra Nezhad, Reza Yousefi Hajiabad,
Volume 13, Issue 4 (1-2014)
Abstract
The main purpose of this paper is to investigate the effect of market structure on innovation and R&D in Iran’s manufacturing sector. To do this, first, statistical data for Iran’s manufacturing sector has been gathered in International Standard Industrial Classification (ISIC) format, then mutual effects of concentration, innovation and R&D, advertising and profitability in different industrial activities have been analyzed using simultaneous equations system and Error Component Tow Stage Least Squares (EC2SLS) during 1996-2007. The results show that industrial concentration has a significant and inverted U-shaped relationship with innovation and R&D. In addition, R&D expenditure declines with increases in profitability. The investigation of the factors affecting manufacturing structure indicates that although innovation and R&D has no effect on manufacturing structure, but profitability and performance of top firms affect their concentration. Our findings exhibit the ineffectiveness of concentration and innovational behavior on industries performance; whereas increasing market concentration results in advertising expenses and innovational behavior of firms raises advertising expenses. Similarly, the lagged and accumulated effects of R&D confirm the existence of an inverted U-shaped relationship between concentration and R&D
Farhad Khodadad Kashi, Mansour Zarranezhad, Reza Yousefi,
Volume 15, Issue 3 (11-2015)
Abstract
This paper aims to investigate the interaction effects among market concentration, profitability, research and development (R&D), and advertising in Iran’s manufacturing sector. For this purpose, the quarterly data on Iran’s manufacturing sector was gathered in ISIC (International Standard Industrial Classification) codes, then the interaction effects of structure, conduct and performance was analyzed for industrial groups by Vector Error Correction Models (VECM) over the period 1996-2007. The results show that innovation and R&D are related to concentration, profitability and advertising within industries in the long-run. On the other hand, concentration and profitability explain 50% of variations in innovation and R&D; however, profitability, as a performance indicator, has the most effect on R&D activities in long run. Therefore, our finding is in line with Chicago-U.C.L.A theory.
Volume 17, Issue 1 (2-2013)
Abstract
, Today, organizations have come to seek current customers and also maintain a permanent relationship with them in addition to developing strategies to attract new customers and trading with them. In other words, they have found that losing a customer is more than losing a sell and it means losing the whole sell opportunities that a customer could make in his lifetime. Since losing a customer in the trade market is equal to lose an important part of the organization asset, developing close and deep relation with the customers creates great value for the organizations. Organizations should reinforce their relations with their customers actively and try to end their relations with non-profitable customers. In this study, “customer profitability for organization” is considered as a new concept. The purpose of this research is to design customer profitability model for organizations and consider the factors affecting on customer profitability in Iranian companies. For this purpose, after reviewing the theoretical foundations in this field, we will identify the factors affecting on customer profitability for organizations, and provide the appropriate conceptual model to measure and confirm these relations. Then we will collect data through questionnaires, analysis and ultimately ntroduce customer satisfaction and customer loyalty (repurchase intention, and recommendation) as two factors that affect on customer profitanility, using the research results. * Corresponding Author’s E-mail: khodadad@modares.ac.ir .
Volume 18, Issue 2 (3-2016)
Abstract
The effect of tillage (conventional and zero tillage), crop establishment (raised-bed and flat-bed), and weed management practices (herbicide alone and integrated approach) was studied on productivity, profitability, nutrient uptake and physico-chemical properties of soil in soybean–wheat cropping system, at New Delhi during 2010–2012. Sixteen treatment combinations consisting of four tillage and crop establishment practices, viz. Conventional Tillage–raised-bed (CT–bed), CT–flat-bed, Zero Tillage–raised-bed (ZT–bed) and ZT–flat-bed; and four weed management practices, viz. unweeded control, herbicide+Hand Weeding (HW), herbicide combination, and crop residue + herbicide were laid out in a split-plot design. Soybean produced higher seed yield (+7.6%) under raised-bed and wheat under flat-bed (+6.2%), but the system productivity was highest under CT–flat-bed. Pre-emergence application of pendimethalin followed by HW gave higher yield of soybean, while all weed control treatments were found equally good for wheat. Conventional tillage resulted in higher uptake by soybean of N (+5.0%), P (+4.4%) and K (+3.1%) than ZT, particularly under raised-bed conditions. In wheat, CT and ZT resulted in almost similar nutrient uptake under flat-bed. Total nutrient uptake of the system was similar for N and P under all tillage and crop establishment practices, while herbicide+HW gave 4.9–7.2% higher uptake than herbicide combination or crop residue+herbicide. Net benefit: cost ratio of the system was the highest (> 2.0) under ZT–flat-bed and herbicide combination. There was beneficial effect on physico-chemical properties of soil under ZT and residue application, but it is necessary to run the experiment in long-term to see the cumulative effect over time.
Volume 18, Issue 4 (1-2015)
Abstract
The more a marketing paradigm evolves, the more long-term relationship with customers gains its importance. Nowadays, most of corporations and firms in the world, including manufacturers and servicers, increasingly gain their incomes and profits through constructing and maintaining long-term relationships with the customers. The move towards a customer-centered approach to marketing, coupled with the increasingavailability of customer transaction data, has led to an interest in understanding and estimatingcustomer lifetime value (CLV). Furthermore, as marketing endeavors to be more accountable, the need of tools and models for measuring and evaluating efforts and investments that accomplish in marketing extent, is felt. The purpose of this research is CLV analysis for customer segmentation and profitability management. This dissertation we proposes a model for CLV measurement in banking industry. Our case study is one of the branches of Iranian Melli Bank. For this purpose, we selected savings (loan) accounts for 4 years, (from 2005 to 2008), in order to run our model. The study sample included 10,000 customers picked up among the accounts. After calculating the CLV of customers, we segmented the customers based on the calculated CLV. For customer segmentation, we used Clustering technique. This conceptual model is a new approach in customer segmentation context. More Customer Profitability Management based on segmented customer sections will be explained. Based on the models explained in this dissertation programs and methods will be proposed for each of introduced segments.
Volume 19, Issue 5 (9-2017)
Abstract
The types and varieties of peppers grown in Mediterranean areas are a response to the demand of European markets, although in each Autonomous Community local varieties are grown to satisfy the national demand. Nowadays, the range of shapes, colours, tastes and uses is wider than ever as a result of greenhouse cultivation, national and international tendencies and increased demand. In Murcia, the growing cycle runs from December to July or August, depending on the market and the growth of the crop. Sweet pepper is normally grown in greenhouses, using a variety of technologies: from simple shaded greenhouses, to the most-advanced multitunnels (large, in the form of a round arch or Gothic arch and with sophisticated ventilation). Due to the high cost of fuel, it is impossible to use heating during winter after transplanting, so alternative techniques are used to raise the temperature a few degrees and improve crop production. The aim of this work was to increase the precocity and productivity of sweet pepper grown in greenhouses. The effect of a Polypropylene Spunbonded Nonwoven Microtunnel (PSNM) was studied. The results show that, although the increase in production was not great (lower than 5% in both years of the study), precocity increased by 16% in both years. Since the increased cost of using this technology is not excessive, crop profitability increases if precocity is taken into account, as all our indicators show. The study suggests that the use of a PSNM raises the marketable production and brings forward the first harvests.
Dr Ali Shahnavazi,
Volume 20, Issue 1 (3-2020)
Abstract
In this study, using the classic and developed models of data envelopment analysis, the frontiers of efficiency and inefficiency were determined for 29 irrigated crops and the relative position of products was determined in terms of gross income and gross profit efficiencies. Research data included cost of inputs used in the preparation, planting, growing and harvesting stages along with income and profitability data for the crop year of 2014-15, which was extracted from the reports of Ministry of Agricultural Jihad.
The results showed that in the input-oriented approach for gross income, the efficiency ranged from 0.2698 to 0.8660. On average, at best, 12.4% and in the worst situation, 73.2% of inputs were overused to generate gross income. The worst rank devotes to barley in the optimistic scenario and to potato in the pessimistic scenario. For the gross profit, the average efficiency score in optimistic and pessimistic scenarios were 0.6353 and 0.1997, respectively, and minimum and maximum scores belonged to barley and potato, respectively. In the output-oriented approach, the average inefficiency for gross income was between 0.2805 and 0.8698, which indicated a possible reduction of income by 71.95% and 13.22%, respectively. In the case of gross profit, optimistic and pessimistic efficiencies were 18.15% and 55.4%, respectively. According to the findings, barley had the maximum inefficiency in all models.
Volume 20, Issue 3 (9-2016)
Abstract
In recent years internet shops have had considerable growth. Performance measures are needed for these shops to maximize the use of resources and getting closer to the aims, to provide the identification of strengths and weaknesses along with minimizing resource inputs to improve the situation. Data Envelopment Analysis (DEA) method is a nonparametric method for measuring technical efficiency and performance of a set of units. This study given the importance of assessing the performance of internet shops and using multiple input-oriented CCR model, measure the performance of internet shops. In this study, internet shop production process is divided into two stages: marketability and profitability. So to calculate the efficiency, a two-stage model of data envelopment analysis is used. Based on the data collected, the efficiency of 37 Internet stores evaluated. Results include overall efficiency and efficiency of marketability and profitability stages. After determining the efficiency of marketability and profitability stages, inefficient stages were identified and solutions were proposed to improve it.
Volume 21, Issue 3 (7-2014)
Abstract
The main objective of this paper is to evaluate the effect of R&D on profitability of high -tech industries with new evidence from the Iranian industries carrying four- digit codes. The Structure- Conduct- Performance (SCP) paradigm, which is relatively well known in industrial economics and in organization management, provides the theoretical construct that guides our empirical model formulation and execution. The data is compiled from observations made at the plant level covering all industrial plants employing ten or more persons and carrying four- digit codes within the time span of 1994-2007. The model used essentially consists of a simultaneous equation system framework grounded into a panel data approach and estimated by Two-Stage Least Squares (2SLS). Our findings indicate a positive and significant effect of R&D expenditures, measured in intensive form, on profitability of high-tech industries as evidenced by the Iranian case. Our more notable finding is the positive effect of lagged profits on R&D expenditure intensity, revealing a likely mutually enforcing relationship between profitability and R&D intensity in high tech industries
Volume 22, Issue 3 (12-2018)
Abstract
Planning companies’ profits through customer satisfaction management has 4 main steps of recognizing constitutive components of customer satisfaction, integration of components and measuring overall customer satisfaction, reviewing how overall customer satisfaction impacts level of performance and activity, and finally identifying main parameters capable of maneuver on customer satisfaction. These factors compiles planning of company's profits. Method used for modeling were econometric approach and mathematical equations. Case of this research is Pars Khodro’s Logan. The researcher, along with ISQI's research team, identified current needs of customers from after sales services. Impact of each variable on overall customers’ satisfaction according to income groups is measured. Then, using econometric models, the variables affecting the company's profit are obtained which according to results, overall customer satisfaction has the highest impact on company's profits. Therefore, using mathematical equations, the effect of the overall customer satisfaction sub-variables on the company's profit has been obtained. Eviews software is used for data analysis.
Mrs. Azadeh Afshari, Sara Ghobadi, Dr Hossien Sharifi Renani,
Volume 23, Issue 1 (3-2023)
Abstract
Aim and Introduction
During crises, the best way to reduce economic vulnerability is to increase the stability of banks. According to Basel Committee's emphasis, the survival rate of any economy is proportional to the stability rate of its banks, and the stability of banks is also proportional to their efficiency rate. But in the current economic conditions of the country, where extensive political and economic risks are threatening the state of financial and monetary systems, examining the situation and predicting future risks, and preparing in advance to face high-risk conditions is the best way to deal with the effects of these threats. Therefore, as the most important step in examining the conditions of monetary institutions, it is very important to identify the factors affecting the development of the monetary sector that can affect the stability of banks. By knowing these indicators, banks can quickly adapt to new conditions, in such a way that they understand and absorb internal and external risks efficiently in the shortest possible time.
Methodology
By examining the issue of stability of banks among the researchers registered in two scientific databases, “Web of Science and Scopus”, and transferring the keywords of 173 articles found in these two databases from 1991 to 2020 to Vosviewer software, the relationship between the keywords of these researches was checked with stability. According to the possibility or impossibility of collecting the statistics of these cases at the level of the country's banks, finally, 17 possible indicators affecting the stability of Iranian banks were identified. Then, their data were collected at the level of 30 Iranian public and private banks and credit institutions during 2002-2020. On the other hand, all the amounts involved in the indices were converted to the price of the base year of 2002 with the help of the inflation index calculator, available on the Central Bank website. Then, with the help of the econometric method of dynamic panel data, the relationship between these indicators and the stability values of the country's banks was examined and Sargan's post-estimation tests and AR(1) and AR(2) statistics were used to measure the validity and accuracy of the model. To estimate the model, firstly, by performing the unit root test of Im, Pesaran, and Shin, (specific to panel models in Stata software), the mean of each variable was evaluated. Since the degree of integration of all variables was not the same, with the help of the KAO cointegration test for panel data, the possibility of the existence of a relationship between independent and dependent variables was investigated. Then, with the help of the augmented Dickey-Fuller statistic, it was observed that hypothesis H0 was rejected and the association between the proposed independent variables and the dependent variable was stable. To determine stability-related variables, step-by-step invalid variables with a significance level greater than 0.05 were removed from the desired model and the new model was re-run until the final variables were determined.
Findings
The results showed that the first hypothesis was rejected, and efficiency was still an important factor in the stability of Iranian banks. Secondly, regarding the second hypothesis, the nature of banks, (whether they are public or private), was not considered an effective factor in their stability. Regarding the third hypothesis, 9 variables were involved with the stability of Iranian banks according to their coefficients. These variables include the ratio of Non-Performing Loan (NPL), the ratio of equity to assets, the ratio of fixed assets to total assets, previous period stability, the ratio of cash to total assets, total assets balance, the ratio of capital to liabilities, loan growth rate and the level of efficiency. Finally, the top efficient and stable Iranian banks were introduced in 2020 and the research findings were explained in the light of theoretical foundations.
Discussion and Conclusion
According to the effect of assets and their components on the stability of banks, it is suggested that each bank’s optimal amount of assets be defined. Also, the lending rate should be changed by the growth of inflation to maintain the reasonable profit margin of the banks. Due to the importance of investigating the simultaneous effect of profitability and efficiency on the stability of banks in crisis conditions, it is necessary to investigate these cases in future research.
Mrs. Marzieh Rafiean Esfahani, Dr Saeed Daei Karimzadeh, Dr Mahshid Shaahchera, Dr Sara Ghobadi,
Volume 23, Issue 2 (5-2023)
Abstract
Aim and Introduction
Over the past two decades, the banking system around the world has undergone significant changes in its operating environment, and several internal and external factors have influenced its structure and performance. Despite all these changes, the banking system remains the main source of financing economic activities in many countries. Therefore, evaluating the performance of the banking system is important. Profitability is one of the influential factors in evaluating the performance of banks. Thus, it is necessary to know the effective internal and external factors. The main purpose of this paper is to evaluate the impact of the concentration index on the profitability of the banking industry. On the other hand, banks as established and organized institutions play an important role in attracting stagnant capital and transferring it to productive sectors, as well as meeting the needs of investors. Since a competitive environment in the banking system can increase efficiency and facilitate financial transactions, identifying the market structure of the banking industry is important for policymakers and banking operators, because it can be the way to remove the obstacles in creating a competitive market.
The policy makers could be selected the polices that achevied the economic goles.
Methodology
In order to achieve this goal, the impact of factors affecting the risk and profitability of banks, we especially use the concentration index as one of the dimensions of the market structure in the banking industry. The method of estimation is generalized method of moments (GMM).
For this purpose, concentration in the banking industry has been measured using the Herfindahl-Hirschman index. In addition, six control variables including capital adequacy, central bank assets ratio, deposit ratio, liquid assets ratio, credit ratio and cost-to-income ratio have been selected as explanatory-control variables. In this way, the explanatory variables of banks' profitability include bank-specific factors. Return on total assets and bank stability index have been used as profitability and risk criteria of banks. Also, the situation of the organized monetary market of 52 countries of the Organization of Islamic Cooperation was studied over the period 2005-2019.
Findings
Based on the findings of the research, the effects of independent variables in the profitability model are statistically significant and have positive effects on the profitability of banks. Regarding the main hypothesis of the research, i.e. the effect of the concentration index on the profitability of the banking system, it can be seen that the increase in market concentration has increased the profitability, which has a significant coefficient of 0.003817, which confirms the Structure-Conduct-Performance(SCP) hypothesis. In other words, based on this hypothesis, as the degree of market competition decreases, it becomes possible to earn higher profits. In addition, independent variables with lag of time (banking stability index, capital adequacy and return on assets) and the ratio of loans to deposits and the ratio of central bank assets have positive and significant impacts on risk.
Discussion and Conclusion
Experimental results have shown that the each of the independent variables has positive and significant effect on risk and profitability. The estimation results have shown the positive effect of the market concentration index on banks' profitability. In this way, in the periods when the concentration in the banking industry is higher, the profitability of the banks is high and with the increase in the level of concentration, the profitability of the banks has increased. As stated in the theoretical foundations, there are various theories regarding the relationship between concentration and profitability of banks. Although these theories differ on how to create this relationship, almost all of them emphasize that increasing concentration increases the profitability of banks and reduces competition. In other words, these theories predict that the relationship between concentration and profitability is positive. The result of fitting the research model shows a positive and significant effect of the concentration index on the return on total assets. This means that increasing market concentration has increased profitability. According to the obvious realities in the economies of the sample countries, the intensity of concentration in the banking industry have significant consequences for the profitability of banks by affecting the efficiency and effectiveness of resources.
Keywords: Banking System, Profitability, Risk Management, Concentration Index
JEL Classification: G21, G32, G38