Enterprise Profitability and Financial Evaluation Model Based on Statistical Modeling: Taking Tencent Music as an Example

Chen, Junke; Liu, Yifan; Zhu, Quing

doi:10.3390/math10122107

Cited by 8 publications

(8 citation statements)

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“…Though vastly improved from earlier generations, current methods for clearing and settling transactions remain costly with many reconciliations and counterparty risks. Furthermore, many financial products have high transaction costs, and financial inclusion is uneven in many parts of the world (Chen et al, 2022). In particular, the duplicative and time-consuming post-trade processes that banks, brokerages, custodians, and clearing houses undertake to reconcile multiple ledgers represent a huge cost of trust embedded in the existing system.…”

Section: Discussion and Contribution To Theorizingmentioning

confidence: 99%

“…Technology is empowering financial firms to open previously untapped markets. (Chen et al, 2022) highlight that the application of more advanced technology enriched banking services. Payment or lending services are among those that play a key role in this process (Clarke, 2019).…”

Section: Digital Platforms In Financial Servicesmentioning

confidence: 99%

“…It shows relations inside platforms between such aspects as connectivity, information sharing and trust, but on the other hand, governance costs, co-created value, and asymmetry of benefits. The platform-based business model is expected to provide greater information symmetry than other structures of business cooperation (Chen et al, 2022;Sironi, 2021). Better connectivity capabilities increase the willingness to share information.…”

Section: Conceptualizing Behavior Patterns Among Platform Partnersmentioning

confidence: 99%

“…Better connectivity capabilities increase the willingness to share information. If the trust reinforces connectivity, it results in more intensive information sharing and greater efficiency (Chen et al, 2022). Greater connectivity and more significant information sharing results in higher confidence.…”

Section: Conceptualizing Behavior Patterns Among Platform Partnersmentioning

confidence: 99%

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Untitled

2023

JEMI

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The JOURNAL OF ENTREPRENEURSHIP, MANAGEMENT AND INNOVATION is an interdisciplinary, double blind-reviewed journal, emphasizing theoretical and empirical articles in entrepreneurship, management, innovation and related fields. The journal is published both in printed form and on-line at www.jemi.edu.pl. THE ENTREPRENEURSHIP AREA OF THE JOURNALThe entrepreneurship area of the journal covers the three major topics: 1) venture creation and small business, 2) the impact of entrepreneurship on economic growth including local and regional development, and 3) entrepreneurial attitudes and motives. We invite original papers of theoretical and empirical nature, rooted in the disciplines of economics, management, sociology, political science, and psychology. The interdisciplinary research is encouraged to assure a comprehensive approach to the topics discussed and to advance both theory and practice. THE MANAGEMENT AREA OF THE JOURNALManagement, as a thematic scope of the journal, focuses on theoretical and empirical considerations of various areas, such as: strategic management, operation or production management, human resource management, information and management, contemporary management problems, new methods and management tools, new forms of organization and management, new threats in management, or new challenges in the organization's environment. THE INNOVATION AREA OF THE JOURNALThe innovation area of the Journal's focus will emphasize a broad range of topics and approaches, including (but not limited to): 1) role of private and public sector in development and diffusion of innovations, 2) product, process and business model innovations, 3) profiles of innovative products, structures and processes, aimed at improving management practice and providing inspiration for entrepreneurs, 4) comparative analyses of national, regional policy or sector issues, such as R&D trends, patents, citations etc., 5) theoretical work on economic, organizational and scientific aspects of innovation, encouraging the search for inspirations from various disciplines, including natural sciences, arts and humanities. THE ENTREPRENEURIAL FINANCE AREA OF THE JOURNALThe entrepreneur or entrepreneurial firm, the institutions providing finance to the entrepreneurs, and the different types of financial sources used by the entrepreneurial firms or investors. Among the areas of our special interests might be enumerated: accounting and corporate finance, financial market as a background for SME development, entrepreneurial finance, regulatory and supervisory aspects related to corporate finance.

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Section: Discussion and Contribution To Theorizingmentioning

confidence: 99%

Section: Digital Platforms In Financial Servicesmentioning

confidence: 99%

Section: Conceptualizing Behavior Patterns Among Platform Partnersmentioning

confidence: 99%

Section: Conceptualizing Behavior Patterns Among Platform Partnersmentioning

confidence: 99%

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2023

JEMI

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“…This acute cash flow shortage leads the company to fall behind on payments and obligations, launching it into financial distress (Culetera & Bredart, 2016). Chen et al (2022) found that financial indicators that can better reflect short-term solvency are important for evaluating enterprise profitability. Minemma and Anderson (2018) found a positive relationship between liquidity and profitability.…”

Section: Profitability and Short-term Solvencymentioning

confidence: 99%

Capital structure, profitability, and short-term solvency of nascent SMEs in Ghana: An empirical study

Amoa-Gyarteng,

Dhliwayo

2023

JEMI

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PURPOSE: Small and medium enterprises (SMEs) play a vital role in the economic growth of emerging economies. However, many of these businesses fail in their early stages, making it important to investigate factors that influence their short-term solvency. This study aims to examine the impact of capital structure and profitability on the short-term solvency of nascent SMEs in Ghana, building on the liability of newness framework. METHODOLOGY: Data for this study were obtained from the Ghana Enterprises Agency, focusing on nascent SMEs that are five years old or less. Financial statements were used to measure the dependent and independent variables, and regression analysis was employed to measure the variance in short-term solvency accounted for by profitability and capital structure. FINDINGS: This study demonstrates that financing decisions and financial performance act as crucial mitigating factors for the potential risks of default and failure faced by nascent SMEs. Notably, the study finds that an appropriate balance between debt and equity financing raises the working capital ratio and thus reduces the liability of newness, which is a major challenge faced by nascent SMEs. This highlights the relevance of the trade-off theory, which recommends a combination of debt and equity financing to leverage the advantages of both sources of capital, in the context of nascent SMEs. The intricate relationship between profitability and short-term solvency in nascent SMEs was revealed in this study. The findings illustrate that while return on equity exhibits a direct impact on the short-term solvency of such SMEs, return on assets manifests an opposing effect. Furthermore, net profit after tax demonstrates only a nominal influence on the short-term solvency of nascent SMEs in Ghana. IMPLICATIONS: The implications of our study are far-reaching, particularly within the context of Ghana’s nascent SMEs. To ensure short-term viability and facilitate a smooth transition to maturity, nascent SMEs must strive for an optimal debt-to-equity ratio. This critical insight underscores the importance of managing the capital structure of nascent SMEs, as the improper balance between debt and equity may impede the achievement of short-term solvency and, in turn, hinder the long-term success of the firm. Additionally, while nascent SMEs must prioritize maintaining liquidity to safeguard against unforeseen contingencies, this comes at a high cost in terms of missed opportunities that could significantly enhance the company’s long-term return on assets. Thus, it is crucial for small business owners in Ghana to strike a balance between short-term solvency and return on assets by engaging in prudent financial management practices. Overall, our study provides valuable theoretical and practical implications for nascent SMEs in Ghana, emphasizing the need to optimize their capital structure and maximize their long-term return on assets while safeguarding their short-term liquidity. ORIGINALITY AND VALUE: The study’s conceptualization that capital structure and profitability relate significantly to short-term solvency and, therefore, buffers the liability of newness is novel. Second, by showing that the trade-off theory’s tenets are relevant to the short-term solvency of nascent SMEs, the study demonstrates that capital structure theories apply equally to SMEs, just as much as large firms.

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Network based Enterprise Profiling with Semi-Supervised Learning

Park,

Shin

2024

Expert Systems with Applications

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Enterprise Profitability and Financial Evaluation Model Based on Statistical Modeling: Taking Tencent Music as an Example

Cited by 8 publications

References 46 publications

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Capital structure, profitability, and short-term solvency of nascent SMEs in Ghana: An empirical study

Network based Enterprise Profiling with Semi-Supervised Learning

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