Capital Strategy Architecture to Optimize RDB’S Role: Case Study Of Bank Sumsel Babel (Published)
The Adequate capital capacity of Regional Development Bank (RBD) is needed in achieving the foresight vision of banking industry. RDB is expected to become a leader in its region –the largest, best, and strongest bank group– especially in the national banking industry. This study aimed to identify the financial performance of Bank Sumsel Babel (BSB) as one of RDB in Indonesia in optimizing its capital using descriptive analysis, to analyze factors affecting capital adequacy of BSB used environmental scanning and to formulate BSB capital strategies used foresight analysis that is designed on BSB’s capital architecture strategy in optimizing its role as agent of regional development. As the result, there were six main strategies namely strengthening the organization, getting additional share deposits from local government, generating higher revenues, increasing the third party funds (TPF), issuing subordinate obligation, and selling the share to the public (Initial Public Offering).
Keywords: Architecture Strategy, BSB, Capital, RDB’s role, foresight industry
Capital Structure and Firm Performance Nexus in Nigeria: A Case Study of Aluminum Extrusion Company PLC (Published)
This study investigated the link between capital structure and firm performance in Nigeria using Aluminum Extrusion Company PLC (ALEX), a company listed under the Basic material sector of the Nigerian Stock Exchange as a case study. The study adopted return on capital employed as proxy for firm performance (response variable), while capital structure components such as debt to equity ratio, debt to capital employed ratio and equity to capital employed ratio were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the company for the period 2009 to 2018. The study employ descriptive statistics and multiple regression technique based on the E- view 9.0 Software as the methods of data analysis. The results revealed that debt to equity ratio has significant positive effect on return on capital employed, debt to capital employed ratio has negative influence on return on capital employed and equity to capital employed ratio has no influence on return on capital employed. Overall, capital structure has no significant effect (at 5% level) on firm performance. Based on the findings, the study recommended among others that the company should finance her activities with retained earnings and use debt as the last option as this is in agreement with the perking Order theory; that the indirect effect of capital structure on firm performance be analyzed by future researchers and that the company managers are advised to be extremely conscious in the use of debt financing as an option in their capital mix up to the optimal limits, as debt to equity ratio provides positive effect though not significant on performance.
Keywords: Capital, Debt, Equity, Firm, Performance, Returns, Structure, employed
Basel II Capital Adequacy Framework in the light of the Financial Crisis (Published)
These papers cover the discussion about the relevance of Basel II capital adequacy framework in the aftermath of the global financial crisis. This study covers in detail the affects of the Basel II on the financial institutions, the problems it carries and the suggestions that are needed to make improvements in it. The discussion covers in detail the impact of different factors on the global financial crisis, the reasons about their behavior and the most effect of the global financial crisis on the western banks as well.
Keywords: Basel II, Capital, Framework, financial crisis