Financial Performance Determinants of Organizations: The Case of Mongolian Companies
Bayaraa Batchimeg
Keywords:
financial performance, determinants, capital structure, Mongolian joint stock companies, corporate efficiency, Return on Assets, Return on Equity, Return on Sales, Mongolian Stock Exchange
Abstract:
This paper is aimed at examining what ratios can determine financial performance of Mongolian companies which are divided into 6 major sectors to increase their competitiveness. This study analyzes the performance of companies in terms of profitability and its association with multiple determinants for 100 Mongolian joint stock companies (JSC) listed in Mongolian Stock Exchange (MSE). Financial statements of those companies from MSE are evaluated by panel regression covering the period of 2012-2015. Return on Assets (ROA), Return on Equity (ROE), and Return on Sales (ROS) are chosen as performance indicators, while growth in sales, growth in profit, growth in assets, earnings per share, gross profit margin, cost to revenue ratio, return on costs, short-term debt to assets ratio, current assets to total assets ratio, long-term debt to total assets, quick ratio, current ratio, and cash ratio are used as explanatory variables. The panel regression results show that ROA has more determinants than ROE and ROS, such as earnings per share, return on costs have positive impacts, while short-term debts to total assets ratio and cost to revenue ratio have negative impacts. Growth in sales, earnings per share and costs to revenue ratio influence positively the financial performance of an organization by ROS, while return on cost has a positive effect on the financial performance measured by return on sale.
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 Financial Performance Determinants of Organizations: The Case of Mongolian Companies [PDF file] [Filesize: 937.33 KB]
 10.7441/joc.2017.03.02
Bayaraa B. (2017). Financial Performance Determinants of Organizations:
The Case of Mongolian Companies. Journal of Competitiveness, 9 (3), 22-33. https://doi.org/10.7441/joc.2017.03.02
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