Keiretsu Affiliation and Equity Values in Japan

2004 ◽  
Vol 07 (04) ◽  
pp. 525-545 ◽  
Author(s):  
Edward B. Douthett ◽  
Kooyul Jung ◽  
YoungKyu Park
Keyword(s):  
Firm Value ◽  
Tobin’S Q ◽  
Ceteris Paribus ◽  
Active Monitoring ◽  
Tobin's Q ◽  
Equity Values ◽  
Equity Value ◽  
Post Market ◽  
Empirical Tests

This study examines the association between keiretsu affiliation and corporate equity value in Japan. We hypothesize that, ceteris paribus, keiretsu firm value, measured as Tobin's Q, is higher than non-keiretsu firm value, reflecting the improved or active monitoring role of the keiretsu arrangement. The empirical tests are supportive after controlling for other financial and ownership variables. The results also show that keiretsu firm value is positively related to the strength of the keiretsu. This is additional evidence that the monitoring provided by the keiretsu relationship does indeed increase corporate equity value, and that the source of the increase in value is not merely a result of cross-shareholding, but inherent to the keiretsu arrangement. However, the effect of keiretsu membership and influence on market equity values has apparently diminished since 1990 (the post-market crash period in Japan).

scholarly journals How Can We Increase Shareholder' Wealth? An Empirical Validation from European Countries

2017 ◽  
Vol 7 (1) ◽  
pp. 323
Author(s):  
Ben Said Hatem
Keyword(s):  
United Kingdom ◽  
Firm Value ◽  
Shareholder Wealth ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Equity Values ◽  
The United Kingdom ◽  
Tax Savings ◽  
Market Capitalisation

This paper tests the determinants of shareholder's wealth. Our study examined three countries: Russia, Sweden and the United Kingdom. The samples contains 69 firms for every country observed over a period of 4 years from 2007 to 2010. Firm value is measured by two ratios: Tobin's Q ratio obtained as the sum of market capitalisation, long term debt and short term capital structure divided by total assets, and market to book ratio measured as market value equity over shareholder's equity. The descriptive statistics manipulate that firms in Sweden and the United Kingdom have higher Tobin's Q and market to book ratios, respectively. We found evidence about the hypothesis of tax savings on firm value. Firms with higher values of performance have higher market equity values. We manipulated to a significant relationship between firm value and size when we consider, only Tobin's Q ratio, as dependant variable. More cash means high stocks prices for firms in Sweden and the United Kingdom. In the British and Swedish markets, older firms have less value.

Pengukuran Kinerja Perusahaan Menggunakan Pendekatan Objektif dan Subjektif

2020 ◽  
Author(s):  
Raymond Lim
Keyword(s):  
Firm Value ◽  
Likert Scale ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Value Growth

Mengukur kinerja perusahaan berdasarkan pendekatan objektif dan subjektif. Pengukuran secara objektif dilakukan dengan menggunakan ROA, Tobin's Q, TFP, dan firm value growth. Di sisi lain, pengukuran subjektif dilakukan dengan mengunakan likert scale.

scholarly journals ANALISIS PERSAMAAN SIMULTAN DARI TOBIN’S Q, KEPEMILIKAN MANAJERIAL DAN KEBIJAKAN UTANG

2007 ◽  
Vol 9 (1) ◽  
pp. 93
Author(s):  
Wahidawati Wahidawati
Keyword(s):  
Firm Value ◽  
Simultaneous Equation ◽  
Least Square ◽  
Managerial Ownership ◽  
Tobin’S Q ◽  
Agency Conflicts ◽  
Manufacturing Companies ◽  
Tobin's Q ◽  
Non Linear ◽  
Linear Simultaneous Equation

The purpose of this research to estimates a simultaneous equations model with Tobin’s Q (firm value), managerial ownership and debt policy jointly determined within the system. This research is based on the pre¬vious¬ research by Chen and Steiner (2000), which found that managerial ownership tobe a significant and positive determinant of the level Tobin’s Q. Chen and Steiner (1999) observed evidence of subtituons-monitoring effects between managerial ownership and debt policy.The research is focused on manufacturing companies listed in BEJ for periode 1999-2002.The method of data collection is done by using pooling method and give 151 firm year observation.This research uses a non linear simultaneous equation methodology with use the statistical method two stage least square. The result of research provides empirical evidence : First, that managerial ownership has a non linear relation with Tobin’s Q (we find support for both an alignmenteffect and an entrenchment effectin the relationship between managerial ownership and Tobin’s Q. second, The result supports the argument that managerial ownership helps to resolve the agency conflicts between stock holder and manager. The result also indicate that there is not subtitu¬ta¬bi¬li¬ty between debt and managerial ownership.

scholarly journals Corporate Social Responsibility and Firm Value: The Moderating Effects of Financial Flexibility and R&D Investment

2020 ◽  
Vol 12 (20) ◽  
pp. 8452
Author(s):  
Zhaoyang Guo ◽  
Siyu Hou ◽  
Qingchang Li
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Idiosyncratic Risk ◽  
Tobin’S Q ◽  
Moderating Effects ◽  
Tobin's Q ◽  
Financial Flexibility ◽  
Corporate Social ◽  
D Investment

Despite the significance of corporate social responsibility (CSR), there remains an extensive debate regarding its implications for firm value. This study examines the moderating effects of financial flexibility and R&D investment on CSR and firm value. Using multiple archival data of 2311 companies from 2010 to 2016, our study finds that CSR is a “double-edged sword” for firm value; specifically, CSR significantly increases systematic risk but reduces firms’ idiosyncratic risk as well as the Tobin’s q. Besides, the results indicate that financial flexibility and R&D investment significantly reduce the negative correlation between CSR and Tobin’s q, the difference between the two being that financial flexibility can reduce the positive relationship between CSR and system risk, while R&D spending can reduce the negative relationship between CSR and idiosyncratic risk. By adding new aspects to the discussion about how CSR affects firm value, the results speak to both theorists and practitioners.

scholarly journals Corporate Governance Mechanisms, Ownership and Firm Value: Evidence from Listed Chinese Firms

2020 ◽  
Vol 8 (2) ◽  
pp. 20 ◽  
Author(s):  
Yusheng Kong ◽  
Takuriramunashe Famba ◽  
Grace Chituku-Dzimiro ◽  
Huaping Sun ◽  
Ophias Kurauone
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Ownership Concentration ◽  
Institutional Setting ◽  
Tobin’S Q ◽  
Governance Mechanism ◽  
Corporate Ownership ◽  
Firm Level ◽  
Tobin's Q ◽  
Negative Effect

This study analyzes corporate ownership as a corporate governance mechanism and its role in creating firm value. Previous research shows that there is no convergence on the firm-value corporate ownership relationship. Most research in this area takes a cross national approach ignoring the uniqueness of each institutional setting particularly those of emerging nations. Using a unique firm level dataset, we investigate how corporate control nature and ownership concentration affect the value of Chinese listed firms. First, non-state owned control is associated with a higher Tobin’s Q while a negative premium is found for state owned. Using the hybrid and the correlated random effects model we confirm a U-shaped non-linear relationship between ownership concentration and Tobin’s Q, implying that firm value first decreases and then increases as block holders own more shares. Further investigation reveals that the negative effect of ownership concentration is weaker when a firm equity nature is non-state owned enterprises (non-SOEs) compared to state-owned enterprises (SOEs). While ownership concentration appears to be an efficient mechanism for corporate governance its effect is weaker for SOEs compared to non-SOEs. The results support privatization of SOEs, sound reforms such as the split share structure reform as crucial for the development of China’s stock market.

scholarly journals A Study of A Causality Relationship between Profitability and Firm Value: A Comparison between European Countries

2017 ◽  
Vol 4 (1) ◽  
pp. 108
Author(s):  
Ben Said Hatem
Keyword(s):  
Firm Value ◽  
European Countries ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Mean Values ◽  
Return On Equity ◽  
Market Values ◽  
Causality Relationship

The aim of our paper is to test for a causality interdependence between profitability and firm value. To this end, we examined a sample of two European countries: Italy and Poland. Our samples contain 200 firms from each country studied over a period of 4 years from 2007 to 2010. As a measure of firm performance, we use two ratios; return on assets and return on equity. Regarding firm value, we used two ratios; Tobin’s Q calculated as long-term debt increased by short-term debt divided by total assets, and Market To Book ratio calculated as market capitalization divided by shareholder’s equity. The descriptive statistics show that Italian firms have higher market values. We obtained mean values of 1,123 and 2,0698 of Tobin’s Q and MTB, respectively. However, firms of Poland are more profitable than firms of Italy. Using a data panel method, we concluded that for firms of Italy, there is a causality relationship between profitability, approximated by return on assets and return on equity and firm value, measured by Tobin’s Q. For firms of Poland, a causality relationship is also found.

scholarly journals Bagaimana Good Corporate Governance (GCG) dalam Keberlanjutan Perusahaan?

2020 ◽  
Vol 3 (2) ◽  
pp. 225
Author(s):  
K. Kurniyati ◽  
K. Khairiyani
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Price ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Good Corporate Governance

<p>This research aimed to examine the effect of Good Corporate Governance (GCG) on firm value. Good Corporate Governance (GCG) was measured by the Corporate Governance Perception Index (CGPI). CGPI was assessed by the Indonesian Institute of Corporate Governance (IICG), an independent institute that was conducting the development of Good Corporate Governance in Indonesia. The firm value was reflected by the stock price, PBV (Price to Book Value), and Tobin’s Q. This study used ten firms as a sample consistently listed in the Indonesian Stock Exchange and followed the CGPI program during 2014-2019. The sample was determined by using purposive sampling. Analysis of data in this study used Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS 3rd version. The result showed that CGPI reflected Good Corporate Governance affected firm value (stock price, PBV, and Tobin’s Q).</p>

scholarly journals MEDIATION OF PROFITABILITY ON CORPORATE SOCIAL RESPONSIBILITY TO FIRM VALUE

2021 ◽  
Vol 13 (2) ◽  
pp. 51-58
Author(s):  
Siti Nurul Faizah ◽  
Dharma Tintri Ediraras
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Firm Value ◽  
Agricultural Sector ◽  
Social Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity

The study aims to test and analyze the influence of CSR as measured by Economic Performance, Environmental Performance, and Social Performance on Firm Value measured using Tobin’s Q with profitability as a mediation variable. The object of this research is the information communication sector, health sector, agricultural sector, electricity sector, and real estate sector, and they were analyzed with statistical methods used is Partial Least Square (PLS). The results of this study showed that Economic Performance, Environmental Performance, and Social Performance had no effect on Return on Equity (ROE) and Tobin’s Q, while Return on Equity (ROE) had an effect on Tobin’s Q either.

scholarly journals Impact of CEO pensions on value relevance of R&D expenditures

2018 ◽  
Vol 16 (4) ◽  
pp. 224-234
Author(s):  
Kyung Jin Park ◽  
Kyoungwon Mo
Keyword(s):  
Firm Value ◽  
Default Risk ◽  
Value Relevance ◽  
Least Square ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Dependent Variables ◽  
Unfunded Liabilities ◽  
The Impact

Since CEO pension is unsecured and unfunded liabilities of the firm, it induces CEOs to have long-term incentives towards minimizing their firms’ default risk. Motivated by the unique characteristics of CEO pension, this study investigates the impact of CEO pension on the value relevance of R&amp;amp;D expenditures. Using Tobin’s Q ratio to measure firm value, the empirical results show that CEO pension intensifies the relation between R&amp;amp;D expenditures and Tobin’s Q ratio. The results remain robust in two-stage least square and propensity score matching regression analysis to address the endogeneity issues in the relation between CEO pension and the value relevance of R&amp;amp;D expenditures. In addition, the regression results with ROA and F-score as the alternative dependent variables also confirm that CEO pension intensifies the relation between R&amp;amp;D expenditures and firm value.

Sign in / Sign up

Export Citation Format

Share Document