scholarly journals Effect of the equity multiplier indicator in companies according the sectors

2013 ◽  
Vol 61 (2) ◽  
pp. 385-392
Author(s):  
Lenka Lízalová ◽  
Petra Kozáková
Keyword(s):  
Service Sector ◽  
Support Service ◽  
Antagonistic Effect ◽  
Construction Sector ◽  
Financial Leverage ◽  
Return On Equity ◽  
Agriculture Sector ◽  
Fishing Sector ◽  
Lower Extent

Managers carry out the demand of the owners to maximise the rentability of invested capital with regards to the taken risk. The tool that evaluates the suitability to indebt in order to reach a higher rentability is the equity multiplier indicator. An analysis of the multiplier was carried out on 10 years of data from 456 Czech companies. Based on the data from these companies the influence of two components of the multiplier, which characterise the influence of indebtedness on the return on equity, was analysed. These components are “financial leverage” and “interest burden”, these having an antagonistic effect. The low variability of the equity multiplier is apparent in the companies of the administrative and support service sector and it is also relatively low in the companies of the agriculture, forestry and fishing sector; on the contrary, in for example the professional, scientific and technical activities and the sector of water, sewage and waste there are companies with higher variability of the equity multiplier. The paper identifies companies (in view of their sector specialization) inclining to a larger utility of debts to increase the return on equity. The largest equity is reached in companies of the construction sector; the lowest effect of the multiplier is to be found in companies of the agriculture sector. The resulting value of the multiplier is to a large extent determined by the financial leverage indicator, to a lower extent and at the same time negatively by the interest burden indicator.

scholarly journals Analisis Perubahan Struktur Ekonomi Dan Sektor Unggulan Kota Kendari Tahun 2010-2020

2021 ◽  
Vol 1 (3) ◽  
pp. 135-140
Author(s):  
Andriani Puspitaningsih ◽  
Asri Djauhar ◽  
Teguh Permana
Keyword(s):  
Quantitative Research ◽  
Service Sector ◽  
Secondary Data ◽  
Support Service ◽  
Service Improvement ◽  
Construction Sector ◽  
Wholesale Trade ◽  
Services Sector ◽  
Trade Sector ◽  
The City

This study aims to determine changes in the structure and leading sectors in the City of Kendari. This research is a quantitative research using secondary data from BPS in the form of GRDP of Kendari city based on the business field in 2010-2020. The results showed that the economic structure of the city of Kendari is dominated by the retail wholesale trade sector and the construction sector. Where in 2010 the trade sector gave the largest contribution to GRDP, but in 2020 the construction sector dominates the contribution to GRDP. The results of other studies show that the leading sector in the city of Kendari is the corporate services sector from 2010-2020. The implication of the results of this study is that the city of Kendari as a service city needs to make changes to urban planning related to trade. And as a city that has advantages in the service sector, it is necessary to issue policies that support service improvement in order to increase the value of the contribution of the service sector in the city of Kendari considering that the city of Kendari is not superior in terms of agriculture.

Agricultural Trade and Ultra-Poor in Pakistan: An Application of CGE Model

2021 ◽  
pp. 097639962110106
Author(s):  
Saud Ahmad ◽  
Muhammad Aamir Khan ◽  
Usman Mustafa
Keyword(s):  
Income Inequality ◽  
World Economy ◽  
Empirical Studies ◽  
Real Income ◽  
Agricultural Trade ◽  
Public Welfare ◽  
Trade Policies ◽  
Agriculture Sector ◽  
Lower Extent ◽  
Potential Impact

In the modern integrated world, the synthesis of countries for trade is often viewed as a crucial source of income and growth disparities across nations. Well-known channels of economic theory can trace the growth effects of trade. However, there is a substantial conflict among empirical studies regarding gains from agricultural trade. Therefore, this study examines the economy-wide impact of agriculture trade liberalization/protection on agriculture production, agriculture trade, income redistribution and public welfare. An extension of the GTAP model known as MyGTAP is employed and the world economy is disaggregated into 20 regions and 11 sectors with Pakistan as a home country. Further, results explore greater gains from an increased level of liberalization towards the agriculture sector in terms of agriculture production, real factors’ wage, terms of trade and household welfare. Rural households enjoy relatively higher real income and income inequality declines in Pakistan in the case of liberalization and protection. However, comparatively protectionism reduces inequality by the lower extent, and said study also points out that neither change in real gross domestic product nor public welfare turns out to be a good indicator of assessing potential impact of trade policies on income inequality.

The Firm-Specific Factors Influencing the Tax Haven Operations of Indian Multinationals

2021 ◽  
pp. 001946622110360
Author(s):  
P. Vineeth ◽  
K. B. Nidheesh
Keyword(s):  
Service Sector ◽  
Positive Impact ◽  
Binary Logistic Regression ◽  
Binary Logistic Regression Model ◽  
Firm Level ◽  
Return On Equity ◽  
Factors Influencing ◽  
Tax Haven ◽  
Specific Factors ◽  
Knowledge Intensive

The present study measures the role of firm-specific factors influencing the likelihood of establishing a subsidiary in tax haven countries. The panel data of Indian companies, which have business operations in foreign countries, are used for the study. The firm-level data for the period from 2007 to 2018 are analysed by using binary logistic regression model. The result shows that the intangible assets, long-term debt, number of subsidiaries and service sector dummy have significant and positive impact on tax haven operations of multinational companies, but the experience of the firm and return on equity are insignificant, and a firm’s size deters the likelihood of setting a tax haven subsidiary. The results also show that firms from high-technology manufacturing and knowledge-intensive sector have more influence on the likelihood of owning a tax haven subsidiary by Indian multinationals. JEL Codes: F21, F23, H25, H26

scholarly journals THE FUTURE OF INDONESIA AND GLOBAL AGRICULTURE: RICE CONSUMPTION AND AGRICULTURAL MODERNIZATION

2020 ◽  
Vol 4 (1) ◽  
pp. 8
Author(s):  
Ade Marsinta Arsani
Keyword(s):  
Income Elasticity ◽  
Human Life ◽  
Supply And Demand ◽  
Agricultural Policies ◽  
Agriculture Sector ◽  
Fishing Sector ◽  
Rice Consumption ◽  
Important Position ◽  
Capital Development ◽  
Income Elasticity Of Demand

In the industry revolution 4.0 era, the agriculture sector still has an important position in human life because, without this sector, human capital development cannot be well developed. Globally, the share of agriculture, forestry, and fishing sector has declined significantly in the last two decades. However, the demand on agriculture product, especially rice, incline every year. Rice supply and demand projection with appropriate methods are very important because their result affect how agricultural policies are applied. The aim of this study is to examine the likely evolution of rice consumption in Indonesia and forecast the Indonesia rice consumption per capita based on global data. The results indicate the income elasticity of demand for rice in the Indonesia has become negative. The forecast of model show that Indonesia’s rice demand will keep incline, at least in the next five years. Due to those result, in order to maintain farmers’ wealth, modernization in agriculture is needed. Government has encouraged some programs such as Simluhtan, Katam, Si Mantap, Smart Farming, Smart Green House, Autonomous Tractor, dan Smart Irrigation to accelerate the agricultural transformation. Unfortunately, human resource quality becomes a problem. Indonesia need massive effort so that modernization in agriculture works well.

scholarly journals Faktor-Faktor yang Mempengaruhi Return Saham Syariah Perusahaan Sub Sektor Tourism, Restaurant, and Hotel

2021 ◽  
Vol 1 (2) ◽  
pp. 384-397
Author(s):  
Harivani Nurwiyati ◽  
Diharpi Herli Setyowati ◽  
Destian Arshad Darulmalshah Tamara
Keyword(s):  
Stock Returns ◽  
Service Sector ◽  
Inflation Rate ◽  
Stock Index ◽  
Current Ratio ◽  
Significance Level ◽  
Return On Equity ◽  
Panel Data Regression ◽  
Negative Effect ◽  
Equity Ratio

The purpose of this study is to analyze the influence of current ratio, debt to equity ratio, return on equity, and inflation rate to return stock of sub sector tourism, restaurant, and hotel companies listed on Indonesia Sharia Stock Index (ISSI). The population used is sharia service sector companies listed on ISSI. The sample is determined using purposive sampling. This research is a descriptive study with a quantitative approach. The data analysis method used is a panel data regression. Based on the results with a significance level of 5%, this study shows: Current ratio, Debt to equity ratio, and Inflation rate partially have No. significant effect to return stock. Return on equity partially has asignificant negative effect to return stock. Current ratio, debt to equity ratio, return on equity, inflation rate simultaneously have a significant effect on stock returns.

تقييم الأداء المالي لشركات التامين في دولة قطر باستخدام DUPONT SYSTEM

2021 ◽  
Vol 2020 (67) ◽  
pp. 29-50
Author(s):  
م. كفاح جبار حسن
Keyword(s):  
Optimal Investment ◽  
Profit Margin ◽  
Insurance Companies ◽  
Insurance Company ◽  
Financial Leverage ◽  
Return On Equity ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Utility Index ◽  
Cost Leadership Strategy

The study of the mutual relationship between return and risk is prepared by the DUPONT SYSTEM for a period of 10 years from 2008 to 2017 in Qatari insurance companies. Costs, which characterized the Qatar General Insurance Company by achieving the highest average profit margin of 99,699 and the AU Asset Utility Index, which measures the efficiency of management in using its assets to achieve its revenues, which characterized Doha Insurance Company as it achieved the highest asset benefit of 34,771 Financial leverage EM, or the so-called ownership multiplier index, which is the ratio that measures the risks related to the use of ownership money, which characterized Qatar Insurance Company, as it achieved the highest rate of raising money of 267,677. The aim of using DUPONT SYSTEM is to compare the performance of companies in the same industry as network analysis to predict future changes, thus adding another dimension to the evaluation of Qatari insurance companies for optimal investment based on sound performance evaluation. The results of the study showed that companies that follow the policy of cost leadership strategy may It achieved a lower return than that which followed the policy of differentiation strategy. The research hypotheses were tested using ANOVA, and the following was found: 1- The existence of statistically significant differences between Qatari companies operating in the insurance field due to the return on equity (ROE). 2- The existence of statistically significant differences between Qatari insurance companies due to the financial leverage index Equity On Multiplier (EM). 3- There are statistically significant differences between Qatari insurance companies attributable to the Return On Asset index (ROA). 4- There are statistically significant differences between Qatari insurance companies due to the Profit Margin (PM) indicator. To confirm the results, a Multiple Comparisons Tukey was performed

The Effect of Profitability and Financial Leverage on Cost of Debt Moderated Earnings Management

2021 ◽  
Vol 26 (1) ◽  
pp. 35
Author(s):  
Herman Ruslim, Renny Muspyta
Keyword(s):  
Earnings Management ◽  
Cost Of Debt ◽  
Manufacturing Companies ◽  
Financial Leverage ◽  
Publicly Traded ◽  
Return On Equity ◽  
Publicly Traded Companies ◽  
Negative Effect ◽  
The Cost

This study aims to determine the effect of profitability and Financial Leverage on the Cost of Debt, and the role of Earnings Management as a moderating variable. In this study, profitability is measured by the ratio of return on equity, financial leverage is measured by the proxy debt ratio, earnings management as measured by discretionary accruals, and cost of debt is measured by the ratio of interest expense divided by the average total debt. The population in this study are publicly traded companies listed on the IDX, and the sample used is manufacturing companies listed on the IDX for the 2016-2019 period. Based on the purposive sampling method, the samples obtained were 69 manufacturing companies and 276 observations. The results showed that profitability has a negative effect on the cost of debt, while financial leverage has no effect on the cost of debt, earnings management cannot weaken the negative effect of profitability on the cost of debt and earnings management cannot weaken the negative effect of financial leverage on the cost of debt.

PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY PENGARUHNYA TERHADAP PROFITABILITAS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 17 (2) ◽  
Author(s):  
Nungky Viana Feranita ◽  
Dwi Anugrah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Leverage ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Corporate Social

Penelitian ini bertujuan untuk mengetahui pengaruh Corporate Social Responsibility (CSR) terhadap profitabilitas yang diukur menggunakan rasio Return On Equity (ROE) pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) periode 2014 dan 2015. Pengungkapan CSR merupakan proses pengkomunikasian dampak sosial dan lingkungan dari kegiatan ekonomi organisasi terhadap kelompok khusus yang berkepentingan dan terhadap masyarakat secara keseluruhan.Sumber data yang digunakan yaitu data sekunder yaitu laporan keuangan tahunan yang diperoleh dari Indo-Exchange File (IDX). Penelitian ini merupakan penelitian kuantitatif, sampel diambil menggunakan teknik purposive sampling berjumlah 27 perusahaan manufaktur dari populasi 143 perusahaan manufaktur. Pengujian hipotesis dalam penelitian ini menggunakan analisis regresi sederhana.Hasil penelitian menunjukkan bahwa pengungkapan CSR berpengaruh tidak signifikan terhadap profitabilitas dengan nilai thitung < dari ttabel yaitu 0,645 < 1,674 dan niliai sig > α yaitu 0,522 > 0,05 maka H0 diterima yang artinya tidak ada pengaruh pengungkapan CSR terhadap profitabilitas. Nilai koefisien determinasi menunjukan hasil sebesar 0,008 atau 0,8%, artinya 0,8% profitabilitas dapat dijelaskan oleh CSR sedangkan sisanya dijelaskan oleh variabel lainnya seperti financial leverage, reputasi auditor, market to book ratio, return on asset, dan lainnya. Kata Kunci: Pengungkapan CSR, Profitabilitas, Perusahaan Manufaktur

Value Relevance of DuPont Identity

2017 ◽  
Vol 7 (2) ◽  
pp. 48
Author(s):  
Pradeep Kumar Gupta
Keyword(s):  
Stock Returns ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Empirical Support ◽  
Operating Efficiency ◽  
Valuation Theory ◽  
Financial Leverage ◽  
Return On Equity ◽  
Use Efficiency

This study provides an empirical support to the relevance of very prevalent and well-established almost a century ago the DuPont Identity in the context of India, one of big 10 emerging markets (Garten, 1997). The DuPont Identity, a familiar form of financial statement analysis (Soliman, 2008) for use in equity valuation (Nissim and Penman, 2001), decomposes the return on equity (ROE) into three multiplicative components: net profit margin (operating efficiency), assets turnover ratio (asset use efficiency) and equity multiplier (financial leverage). The present study is based on the valuation theory which considers the viewpoint of equity investors to empirical investigate the value relevance of accounting information (Beisland, 2009). In this study, value relevance of three measures of accounting information used in the DuPont Identity is investigated for 228 manufacturing firms listed in National Stock Exchange (NSE) of India over a period of ten years from 2006-07 to 2015-2016. The findings indicate that the firms should focus on asset use efficiency and financial leverage components of DuPont Identity since a statistically significant impact of these two components on the stock returns is found. The strategic use of asset efficiency and financial leverage inevitably ensures the operating efficiency of the firms. This empirical investigation is an addition to the value relevance literature with an important insight to the firms and the participants of stock market about the usefulness of DuPont Identity in the context of India.

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