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Volkswagen Company’s Corporate Governance and Liquidity Risk

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  • Jamalludin Helmi, Faten Fatihah

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.

Suggested Citation

  • Jamalludin Helmi, Faten Fatihah, 2019. "Volkswagen Company’s Corporate Governance and Liquidity Risk," MPRA Paper 97265, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97265
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    References listed on IDEAS

    as
    1. Saseela Balagobei, 2018. "Corporate Governance and Firm Performance: Empirical Evidence from Emerging Market," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(12), pages 1415-1421.
    2. Saseela Balagobei, 2018. "Corporate Governance and Firm Performance: Empirical Evidence from Emerging Market," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(12), pages 1415-1421, December.
    3. Aykut Ekinci, 2016. "The Effect of Credit and Market Risk on Bank Performance: Evidence from Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 427-434.
    4. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas, 2019. "Supplier Diversification Under Buyer Risk," Management Science, INFORMS, vol. 65(7), pages 3150-3173, July.
    5. Samuel Gameli Gadzo & Holy Kwabla Kportorgbi & John Gartchie Gatsi, 2019. "Credit risk and operational risk on financial performance of universal banks in Ghana: A partial least squared structural equation model (PLS SEM) approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1589406-158, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance; Liquidity Risk; Return on Asset;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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